ACCA Code of Ethics and Conduct

The ACCA (Association of Chartered Certified Accountants) Code of Ethics and Conduct provides a framework of ethical principles and guidance for professional accountants. Based on the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA), the ACCA Code promotes integrity, transparency, and professionalism within the accounting profession. Compliance with this Code is mandatory for all ACCA members, affiliates, and students.

1. Objectives of the ACCA Code

  • Promote Ethical Behavior: Encourage high standards of integrity and honesty.
  • Protect the Public Interest: Ensure accountants act in a way that upholds public trust in the profession.
  • Enhance Professionalism: Reinforce confidence in the services provided by ACCA professionals.

2. Fundamental Ethical Principles

The ACCA Code outlines five core principles that every professional accountant must uphold:

A. Integrity

  • Be honest and straightforward in all professional and business relationships.
  • Do not knowingly associate with false or misleading information.

B. Objectivity

  • Do not allow bias, conflicts of interest, or undue influence to override professional judgment.

C. Professional Competence and Due Care

  • Maintain professional knowledge and skill at the required level.
  • Act diligently and in accordance with applicable technical and professional standards.

D. Confidentiality

  • Respect the confidentiality of information acquired during professional duties.
  • Do not disclose information without proper authority unless there is a legal or professional right or duty to do so.

E. Professional Behavior

  • Comply with laws and regulations.
  • Avoid any conduct that discredits the profession.

3. Conceptual Framework Approach

To help identify, evaluate, and address threats to compliance with ethical principles, the ACCA Code employs a conceptual framework that includes:

  • Identifying Threats: Such as self-interest, self-review, advocacy, familiarity, and intimidation threats.
  • Evaluating Significance: Assessing whether the threats are at an acceptable level.
  • Applying Safeguards: Taking steps to eliminate the threat or reduce it to an acceptable level.

4. Ethical Conflicts and Resolution

  • Seek Guidance: Consult with ACCA or a legal advisor when faced with ethical dilemmas.
  • Document Decisions: Keep clear records of the steps taken and decisions made.
  • Professional Judgment: Apply reasoning and objectivity in resolving conflicts.

5. Application to Professional Roles

  • Accountants in Practice: Must ensure independence, particularly in audit and assurance services.
  • Accountants in Business: Must not be associated with misleading information and must promote ethical culture within the organization.

6. Disciplinary Consequences

  • Breach of the Code: Can result in investigation and disciplinary action by ACCA.
  • Penalties: May include reprimands, suspension, removal from membership, or fines.

Importance of Upholding ACCA Ethical Standards

Adherence to the ACCA Code of Ethics and Conduct is essential to maintaining public confidence, protecting the reputation of the profession, and supporting ethical decision-making in accounting and finance. The principles are designed not only to guide individual behavior but also to promote a culture of integrity and accountability across the global profession.