Ethics serves as the code of conduct in which the people involved comply to. In the field of accounting, different organizations such as the American Institute of Certified Public Accountants (AICPA), Institute of Management Accountants (IMA), and Institute of Internal Auditors (IIA) provide code of ethics to their members.

1. Basics of Accounting Accounting Ethics

2. What is Ethics?
2
Ethics serves as the code of conduct in
which the people involved comply to. In
the field of accounting, different
organizations such as the American
Institute of Certified Public Accountants
(AICPA), Institute of Management
Accountants (IMA), and Institute of
Internal Auditors (IIA) provide code of
ethics to their members.

3. Intentions
of Ethics
3
• Central element in creating profession
• Outlines the various duties,
responsibilities, and functions of the
members of an organization
• Helps in situations that concern queries
on ethics and where decisions ought to
be made

4. Intentions
of Ethics
4
• Directs accountants and auditors to
exhibit professionalism and serve,
honor, and protect the public’s interest
• In accounting, the code of ethics is
centered on promoting integrity,
objectivity, independence, due care,
competence, confidentiality, and
credibility

5. Intentions
of Ethics
5
• Integrity
• Described by AICPA as the quality from which
the public trust is derived and the reference
point against which a member must
eventually analyze and assess all decisions
• Lets an accountant or auditor retain and
increase the public’s confidence
• With integrity comes trust, and this gives
basis for the confidence on accounting
professionals’ judgment.

6. Intentions
of Ethics
6
• Objectivity
• One of the distinctive characteristics of the
accounting profession
• Directs accountants and auditors to be
impartial, intellectually honest, and free from
conflicts of interest
• Compels accounting professionals to make a
balanced evaluation in all auditing- or
accounting-related circumstances

7. Intentions
of Ethics
7
• Independence
• Averts situations that may impair an
accounting professional’s objectivity
• Directs the accountant or auditor to be
independent in both action and
appearance while rendering accounting
or auditing services

8. Intentions
of Ethics
8
• Due care
• Its bottom line is the pursuit of
superiority and greatness
• Obliges accounting professionals to
administer and carry out their duties
and responsibilities with competence,
vigor, and to the best of their abilities

9. Intentions
of Ethics
9
• Competence
• Directs accounting professionals to:
- perform services that adhere to the
rules, policies, and standards
- maintain and enhance their technical
skills and know-how
- present information that are definite,
coherent, and terse

10. Intentions
of Ethics
10
• Confidentiality
• Upholds the importance and ownership of
the information that accounting
professionals acquire or obtain
• Directs professionals to not divulge any
information unless they are required by
the law to do so
• Prohibits auditors and accountants to use
obtained information for personal gains

11. Intentions
of Ethics
11
• Credibility
• Means having the right skills to relate
information adequately and impartially
• Directs accounting professionals to be
honest in disclosing information that may
have an effect on their client’s
comprehension towards end reports,
evaluations, and suggestions

12. Good fortune is what
happens when
opportunity meets with
planning.
- Thomas Alva Edison
12
BKM Sowan Horan, LLP
15301 Dallas Parkway, Suite 960
Dallas, Texas 75001
Phone: 214-545-3965
Fax: 214-545-3966
www.bkmsh.com
For more information about Accounting Ethics, please visit: http://bit.ly/BKMSH-Accounting-Ethics