Code of Ethics Professional Accountants

Question: Discuss about the Code of Ethics for Professional Accountants. Answer: Introduction: In this case, the Integrity principle is being impacted. As per this principle, an accountant should be honest and very straight forward in all the business relations. In this case, Peter Harmon along with his accounting services were asking the clients to buy computer equipment from Computer Services Ltd. He has its commission amounting to 10% from the company. In this case, the accountant should be honest and very straight and should let the customer know the actual reality behind his advice. In this case, the David Smith, an auditor discloses the name of the clients without their permission to the Allied Insurance Company who is in search of the client tale. In this case, the auditor is found guilty of the confidentiality principle. The auditor in this case, is expected to keep the name of the clients and all other information that he has in relation to the service he is rendering to the clients confidential. He has acquired the information by virtue of the professional and business relation. He is further not required to use this information for his personal interest or for the interest of the third parties. Wrench and company, has all the information of its clients saved in the same computer which is being accessed by the clients as well by the staff members as well. Thus in this case there is a possibility that the information of the client can be leaked and may be misused. In this case, the accountant is found guilty of the confidentiality principle. The accountant in this case, is expected to keep the information that he has in relation to the service he is rendering to the clients confidential. He has acquired the information by virtue of the professional and business relation. He is further not required to use this information for his personal interest or for the interest of the third parties. In the given case, the auditor Stephanie Barry sent the information in an unsolicited manner on a monthly basis to the client Williams Pty Ltd. Barry sends her firms literature regarding its management services capabilities to the client. In this case, being the information has been provided by the auditor to the client has been provided in unsolicited manner, it affects the confidentiality of the client. Thus in that case, the auditor is required to ensure that the client should be very well informed well in advance for the information that has been sent in to the client. There might be possible that the information might get lost or may be seen by someone else which the client may not like. Thus in this case, the confidentiality principle may get impacted. The auditor of a company should be complying with the laws and regulations prevailing in the country. In the given case, Katrina Ng was carrying out the audit of a not for profit entity. She at the same time was holding the post of a director in the not for profit entity, but the position is not in the management capacity. Being the manager was a member of the board of director, he is not authorized to carry out the audit of the same firm. The principle Professional behavior is impacted. The auditor of a company should be complying with the laws and regulations prevailing in the country. A person cannot be the auditor and the employee of the same company at the same time. In the given case, Peter Beattie, a public accountant, provides tax services, management advisory services, bookkeeping services and conducts audits for the same client. Being the act of the accountant was not as per the principle Professional behavior, he is not authorized to hold both position at the same time. An auditor of the company is required to act professional. In the given case, the Hornsby Auditors advertised in the local newspaper that they are among the top auditors in the district compared to other auditors and they have the ability to help clients get higher tax deductions as compared to all others in the district. In this case, the act of the auditor was violating the objectivity principle. The auditor should not compare themselves with other auditors and should not make unfair promises to the clients or make incorrect statements to the public. In this case, the auditor David Cheadle started the audit of Nestree Ltd for the year ended 30th June 2016 without getting the fees for the prior year. In this case, it seems that none of the ethics codes has been felt violated. References IFAC, 2006, Code Of Ethics For Professional Accountants, Viewed on 22nd Jan 2016, Reterived from https://www.ifac.org/system/files/publications/files/ifac-code-of-ethics-for.pdf