The Fundamental Principles
(a)
Integrity – to be straightforward and honest in all professional and business relationships.
(b)
Objectivity – to exercise professional or business judgment without being compromised by:
(i)
Bias;
(ii)
Conflict of interest; or
(iii)
Undue influence of, or undue reliance on, individuals, organizations, technology or other factors.
(c)
Professional Competence and Due Care – to:
(i)
Attain and maintain professional knowledge and skill at the level required to ensure that a client or employing organization receives competent professional service, based on current technical and professional standards and relevant legislation; and
(ii)
Act diligently and in accordance with applicable technical and professional standards.
(d)
Confidentiality – to respect the confidentiality of information acquired as a result of professional and business relationships.
(e)
Professional Behaviour – to:
(i)
Comply with relevant laws and regulations;
(ii)
Behave in a manner consistent with the profession’s responsibility to act in the public interest in all professional activities and business relationships; and
(iii)
Avoid any conduct that the chartered accountant knows or should know might discredit the profession.
(a)
Standing one’s ground when confronted by dilemmas and difficult situations; or
(b)
Challenging others as and when circumstances warrant, in a manner appropriate to the circumstances.
(a)
Contains a materially false or misleading statement;
(b)
Contains statements or information provided in grossly negligent manner or
(c)
Omits or obscures required information where such omission or obscurity would be misleading. 111.2 A1 If a chartered accountant provides a modified report in respect of such a report, return, communication or other information, the accountant is not in breach of paragraph R111.2.
(a)
Bias;
(b)
Conflict of interest; or
(c)
Undue influence of, or undue reliance on, individuals, organizations, technology or other factors.
(a)
Attain and maintain professional knowledge and skills at the level required to ensure that a client or employing organization receives competent professional service, based on current technical and professional standards and relevant legislation; and
(b)
Act diligently and in accordance with applicable technical and professional standards. 113.1 A1 Serving clients and employing organizations with professional competence involves the exercise of sound judgment in applying professional knowledge and skills. 113.1 A2 The knowledge and skills necessary for a professional activity vary depending on the nature of the activity being undertaken.
(a)
Be alert to the possibility of inadvertent disclosure, including in a social environment, and particularly to a close business associate or an immediate or a close family member;
(b)
Maintain confidentiality of information within the firm or employing organization;
(c)
Maintain confidentiality of information disclosed by a prospective client or employing organization; and
(d)
Take reasonable steps to ensure that personnel under the accountant’s control, and individuals from whom advice and assistance are obtained, comply with the accountant’s duty of confidentiality. 114.1 A1 Maintaining the confidentiality of information acquired in the course of professional and business relationships involves the chartered accountant taking appropriate action to protect the confidentiality of such information in the course of its collection, use, transfer, storage or retention, dissemination and lawful destruction.
(a)
Disclose confidential information acquired in the course of professional and business relationships;
(b)
Use confidential information acquired in the course of professional and business relationships for the advantage of the accountant, the firm, the employing organization or a third party;
(c)
Use or disclose any confidential information, either acquired or received in the course of a professional or business relationship, after that relationship has ended; and
(d)
Use or disclose information in respect of which the duty of confidentiality applies notwithstanding that the information has become publicly available, whether properly or improperly.
(a)
There is a legal or professional duty or right to do so; or
(b)
This is authorized by the client or any person with the authority to permit disclosure or use of the confidential information and this is not prohibited by law or regulation. 114.3 A1 Confidentiality serves the public interest because it facilitates the free flow of information from the chartered accountant’s client or employing organization to the accountant in the knowledge that the information will not be disclosed to a third party. Nevertheless, the following are circumstances where chartered accountants might be required or have the duty or right to disclose confidential information:
(a)
Disclosure is required by law or regulation, for example:
(i)
Production of documents or other provision of evidence in the course of legal proceedings; or
(ii)
Disclosure to the appropriate public authorities of infringements of the law that come to light and;
(b)
There is a professional duty or right to disclose or use, when not prohibited by law or regulation:
(i)
To comply with the requirements of peer review or quality review or such other review by the Institute;
(ii)
To respond to an inquiry or investigation by the Institute or other regulator;
(iii)
To protect the professional interests of a chartered accountant in legal proceedings; or meet the ends of justice in legal proceedings when demanded by the court; 114.3 A2 In deciding whether to disclose or use confidential information, factors to consider, depending on the circumstances, include: • Whether the interests of any parties, including third parties whose interests might be affected, could be harmed if the client or employing organization authorizes the disclosure or use of information by the chartered accountant. • Whether all the relevant information is known and substantiated, to the extent practicable. Factors affecting the decision to disclose or use, the information include: o Unsubstantiated facts. o Incomplete information. o Unsubstantiated conclusions. • The proposed means of communicating the information. • Whether the parties to whom the information is to be provided or access is to be granted are appropriate recipients. • Any applicable law or regulation (including those governing privacy) in a jurisdiction where disclosure might take place and, if different, the jurisdiction where the confidential information originates. 114.3 A3 The circumstances in which a firm or employing organization seeks authorization to use or disclose confidential information, include where the information is to be used for training purposes, in the development of products or technology, in research or as source material for industry or other benchmarking data or studies. Such authorization might be general in its application (for example, in relation to use of the information for internal training purposes or quality enhancement initiatives). When obtaining the authorization of the individual or entity that provided such information for use in specific circumstances, relevant considerations to be communicated (preferably in writing) might include: • The nature of the information to be used or disclosed. • The purpose for which the information is to be used or disclosed (for example, technology development, research or benchmarking data or studies). • The individual or entity who will undertake the activity for which the information is to be used or disclosed. • Whether the identity of the individual or entity that provided such information or any individuals or entities to which such information relates will be identifiable from the output of the activity for which the information is to be used or disclosed.
(a)
Comply with relevant laws and regulations;
(b)
Behave in a manner consistent with the profession’s responsibility to act in the public interest in all professional activities and business relationships; and
(c)
Avoid any conduct that the accountant knows or should know might discredit the profession.
(a)
Exaggerated claims for the services offered by, or the qualifications or experience of, the accountant; or
(b)
Disparaging references or unsubstantiated comparisons to the work of others.
(c)
Any direct or indirect measures to advertise any professional/other facts which are in violation of Advertisement Guidelines issued by the Council of the Institute from time to time. 115.2 A1 The chartered accountant should ensure that the contents of an advertisement are true to the best of his knowledge and belief, and are in conformity with the Advertisement Guidelines, and be aware that the Institute does not own any responsibility, whatsoever, for such contents or claims by him.