This document outlines an agenda for a talk on ethical issues in accounting. It discusses: 1) What constitutes a profession and professional accountant, including specific bodies of knowledge, commitment to public interests, and codes of ethics. 2) Two fundamental professional skills for accountants: professional skepticism and professional judgement. 3) The code of ethics for accountants, which includes six fundamental principles of integrity, objectivity, confidentiality, professional competence, professional behavior, and due care. 4) How a professional accountant's ethics may be tested, through abusing their position, compromising independence, or failing to act with competence, proper behavior, or due care.

1. Nik Mohd Hasyudeen 2-1-2023
Ethical Issues in
Accounting
The Essence of Being A Professional Accountant

2. • My experience
• What is a profession?
• Who is a professional accountant?
• 2 Fundamental professional skills
• Code of ethics for accountants
• Professional scepticism and professional judgment
• When you professionalism will be tested
• Preparing and responding to ethical threats
Agenda

3. My Experience
President of Malaysian Institute of Accountants
Profession
Vice-President of Asean Federation of Accountants
Regulator
Executive Chairman of the Audit Oversight Board
Executive Director, Market and Corporate
Supervision, Securities Commission
Bursa Malaysia Listing Ciommittee
Standard Setter
Member of the Malaysian Accounting Standards Board
Professional Practice
Executive Chairman,
Khairuddin Hasyudeen & Razi
Board Membership
Cagamas Holdings Berhad
Petron Malaysia Re
fi
ning & Marketing Berhad
Bank Islam Malaysia Berhad
Corporate
Lembaga Tabung Haji

4. • Speci
fi
c body of knowledge
• Committed towards upholding public interests
• Code of ethics
What is a Profession?

5. • Professional knowledge
• Professional skills
• Professional values
Who is a Professional Accountant?

6. • Professional scepticism
• An attitude that includes a questioning mind, being alert to
conditions which may indicate possible misstatement due to
error or fraud, or a critical assessment of audit evidence
• Professional judgment
• Involves the application of relevant training, professional
knowledge, skills and experience commensurate with the facts
and circumstances, including the nature and scope of the
particular professional activities, and the interests and the
relationship involved
2 Fundamental Professional Skills

7. • 6 Fundamental principles:
• Integrity
• Objectivity
• Con
fi
dentiality
• Professional competence
• Professional behaviour
• Due care
Code of Ethics of Professional Accountants

8. • Independent in form and Independent in substance
• Threats to independence
• Self-review threat
• Self-interest threat
• Familiarity threat
• Advocacy threat
• Intimidation threat
• Audit
fi
rms have to comply with additional professional standards
and regulation
Auditors Must Be Independent

9. • Integrity
• Abusing position
• Abusing principle-based standards
• Objectivity
• Judgement made base on personal interests
• Con
fi
dentiality
• Abusing information
When Your Professionalism Will Be Tested

10. • Professional competence
• Fail to be competent in the professional areas under your
responsibility
• Professional behaviour
• Disregard of professional standards
• Due care
• Negligence
When Your Professionalism Will Be Tested

11. • Strive to be competent and excellent in the job your are doing
• Rely on safeguards within the company, profession and law
• It is
fi
ne to be honest #
fi
ne2Bhonest
• From an Islamic perspective, your position is an Amanah and you
must do your best to ful
fi
l your responsibilities.
• Remember that all our actions will be scrutinised by Allah in the
Day of Judgment
Preparing and Responding to Ethical Threats

12. Thank You
Questions?