This document discusses professional standards and behaviors for accountants in public practice. It outlines fundamental principles of integrity, objectivity, professional competence, confidentiality, and professional behavior. It also provides guidance on accepting new clients and engagements, maintaining confidentiality of client information, and handling changes in professional appointments. The key aspects are maintaining high ethical standards, only taking on work you are competent to perform, protecting confidential client information, and considering any threats to compliance with these principles.

1. group 2 :
1.Dian Fihastuti
2.John Adiguna
3.Murni Wanti Situmorang
4.Rachmalia Marlina
5.Ratna Anggi Pratiwi
6.Rhani Rachmanda

3. This Part of the Code describes how the conceptual framework contained
in Part A applies in certain situations to professional accountants in public
practice. This Part does not describe all of the circumstances and
relationships that could be encountered by a professional accountant in
public practice that create or may create threats to compliance with the
fundamental principles. Therefore, the professional accountant in public
practice is encouraged to be alert for such circumstances and
relationships.

4. A professional accountant shall comply with the following fundamental
principles:
 Integrity - to be straightforward and honest in all professional and
business relationships
 Objectivity - to not allow bias, conflict of interest or undue influence of
others to override professional or business judgments.
 Professional Competence and Due Care - to maintain professional
knowledge and skill at the level required to ensure that a client or employer
receives competentprofessional services based on current developments in
practice, legislation and techniques and act diligently and in accordance
with applicable technical and professional standards.
Confidentiality - to respect the confidentiality of information acquired as
a result of professional and business relationships and, therefore, not
disclose any such information to third parties without proper and specific
authority, unless there is a legal or professional right or duty to disclose, nor
use the information for the personal advantage of the professional
accountant or third parties.
Professional behaviour - to comply with relevant laws and regulations
and avoid any action that discredits the profession.

5. The principle of confidentiality imposes an obligation on all professional
accountants to refrain from:
•Disclosing outside the firm or employing organization confidential
information acquired as a result of professional and business relationships
without proper and specific authority or unless there is a legal or professional
right or duty to disclose; and
•Using confidential information acquired as a result of professional and
business relationships to their personal advantage or the advantage of third
parties.

6. A professional accountant shall maintain confidentiality, including in a social
environment, being alert to the possibility of inadvertent disclosure, particularly to a
close business associate or a close or immediate family member.
A professional accountant shall take reasonable steps to ensure that staff under the
professional accountant’s control and persons from whom advice and assistance is
obtained respect the professional accountant’s duty of confidentiality.
The need to comply with the principle of confidentiality continues even after the end of
relationships between a professional accountant and a client or employer. When a
professional accountant changes employment or acquires a new client, the professional
accountant is entitled to use prior experience. The professional accountant shall not,
however, use or disclose any confidential information either acquired or received as a
result of a professional or business relationship.

7. In deciding whether to disclose confidential information, relevant factors to consider
include:
a. Whether the interests of all parties, including third parties whose interests may be
affected, could be harmed if the client or employer consents to the disclosure of
information by the professional accountant;
b. Whether all the relevant information is known and substantiated, to the extent it is
practicable; when the situation involves unsubstantiated facts, incomplete
information or unsubstantiated conclusions, professional judgment shall be used in
determining the type of disclosure to be made, if any;
c. The type of communication that is expected and to whom it is addressed; and
d. Whether the parties to whom the communication is addressed are appropriate
recipients.

8. Professional Behavior
Professional behavior goes beyond just thinking about acting
with professionalism. It involves specific steps and actions you
implement in a job to fulfill your duties and responsibilities to
clients, customers, co-workers and company associates. No
matter what your job, critical thinking and problem-solving,
ethical and responsible role fulfillment, initiative and
accountability, and appropriate nonverbal gestures and
demeanor all demonstrate professional behavior.

9. Professional Demeanor
A variety of nonverbal gestures and mannerisms fit into a category of
behaviors that make up professional demeanor. Dressing and grooming
in line with the job and company policy are examples. Professionals
dress to project the right image to customers, not to test the minimum
boundaries of company policy. Professionals maintain poise under
pressure and show respect for others rather than lashing out physically
or emotionally. Shaking hands firmly, listening actively and with eye
contact, smiling and standing with tall posture are other elements of
professional demeanor.
Critical Thinking and Problem-Solving
Critical thinking is an intentional effort to think through processes logically.
A professional is more likely to think through a challenging scenario to
choose the best action as opposed to acting impulsively or irrationally.
Problem-solving professional behaviors are closely tied to critical thinking
as well. Thoughtful problem-solving involves an intentional step-by-step
approach of listening, investigating, defining and then working to resolve a
problem. Consultative salespeople are problem-solving professionals. They
ask questions of prospects, address concerns, consider alternative
remedies and recommend solutions. Managers or leaders also work
through problem-solving steps to find optimum solutions.

10. Ethical and Responsible Actions
Professionals exhibit moral decision-making and responsible actions in many
ways. A professional respectfully follows his manager's directions to complete
tasks and projects. When faced with a choice between doing right by a
customer or making immediate profit for the company, an ethical professional
does what is rAight first. An honest and trustworthy worker uses company
resources and materials efficiently just as he would his own. In contrast, less
professional and ethical workers may overuse or abuse access to resources and
even use them for personal purAposes. Responsible employee behaviors
include turning in completed work by deadlines and following through on
commitments to co-workers and clients.
Initiative and Accountability
Employees show initiative by seeking new work and responsibilities and
by looking for resources without always needing assistance. In a retail
setting, a professional sales associate organizes product displays and
completes routine cleaning activities when there are no immediate
opportunities to help customers. Professionals also show initiative by
seeking internal and external training opportunities, such as attending
workshops and conferences, or mentoring a new employee.
Accountability means accepting ownership of mistakes or problems, and
working for a remedy. Service reps often have to take personal
accountability for company failures to satisfy a customer's desires.

12. Client Acceptance
Before accepting a new client relationship, a professional accountant in public practice
shall determine whether acceptance would create any threats to compliance with the
fundamental principles. Potential threats to integrity or professional behaviour may be
created from, for example, questionable issues associated with the client (its owners,
management or activities).
Client issues that, if known, could threaten compliance with the fundamental principles
include, for example, client involvement in illegal activities (such as money laundering),
dishonesty or questionable financial reporting practices.
A professional accountant in public practice shall evaluate the significance of any threats
and apply safeguards when necessary to eliminate them or reduce them to an acceptable
level.
Examples of such safeguards include:
• Obtaining knowledge and understanding of the client, its owners, managers and those
responsible for its governance and business activities; or
• Securing the client’s commitment to improve corporate governance practices or internal
controls.
Where it is not possible to reduce the threats to an acceptable level, the professional
accountant in public practice shall decline to enter into the client relationship.
It is recommended that a professional accountant in public practice periodically review
acceptance decisions for recurring client engagements.

13. Engagement Acceptance
The fundamental principle of professional competence and due care imposes an obligation
on a professional accountant in public practice to provide only those services that the
professional accountant in public practice is competent to perform. Before accepting a
specific client engagement, a professional accountant in public practice shall determine
whether acceptance would create any threats to compliance with the fundamental
principles. For example, a self-interest threat to professional competence and due care is
created if the engagement team does not possess, or cannot acquire, the competencies
necessary to properly carry out the engagement.
A professional accountant in public practice shall evaluate the significance of threats and
apply safeguards, when necessary, to eliminate them or reduce them to an acceptable
level.

14. Changes in a Professional Appointment
A professional accountant in public practice who is asked to replace another professional
accountant in public practice, or who is considering tendering for an engagement currently
held by another professional accountant in public practice, shall determine whether there
are any reasons, professional or otherwise, for not accepting the engagement, such as
circumstances that create threats to compliance with the fundamental principles that
cannot be eliminated or reduced to an acceptable level by the application of safeguards.
Safeguards shall be applied when necessary to eliminate any threats or reduce them to an
acceptable level.
Examples of such safeguards include:
•When replying to requests to submit tenders, stating in the tender that, before accepting
the engagement, contact with the existing accountant will be requested so that inquiries
may be made as to whether there are any professional or other reasons why the
appointment should not be accepted;
•Asking the existing accountant to provide known information on any facts or
circumstances that, in the existing accountant’s opinion, the proposed accountant needs
to be aware of before deciding whether to accept the engagement; or
•Obtaining necessary information from other sources.
When the threats cannot be eliminated or reduced to an acceptable level through the
application of safeguards, a professional accountant in public practice shall, unless there is
satisfaction as to necessary facts by other means, decline the engagement.

15. THANKS