5) ABOUT ACCA'S FUNDAMENTAL PRINCIPLES

The objective of this unit is to introduce you to ACCA’s fundamental principles:

• Integrity

• Objectivity

• Professional competence and due care

• Confidentiality

• Professional behaviour

As a human being, you and your ethics are shaped by your upbringing and your experience. As
a professional accountant or student accountant, you are bound by the laws of your country,
and all regulations that flow out of them. As an ACCA member, student, or affiliate, you are also
bound by the fundamental principles of ACCA.

Section 3.2 of the ACCA Rulebook contains the full text of these principles. These principles are
based on standards from IFAC, the International Federation of Accountants which apply to
accountants around the world. What follows is an explanation of these principles.

INTEGRITY

What the rulebook says

You 'should be straightforward and honest in all professional and business

relationships.'

In other words

Do not lie and do not issue false or misleading information.

OBJECTIVITY

What the rulebook says

You ‘should not allow bias, conflicts of interest or undue influence of others to override
professional or business judgements.’

In other words

Your professional and business judgement should be based on fact and on what is in
the best interests of stakeholders or others. Judgement should not be based on what is
in your own personal interest, or in the interests of those who have power or influence
over you.

PROFESSIONAL COMPETENCE AND DUE CARE

What the rulebook says

You ‘have a continuing duty to maintain professional knowledge and skill at a level
required to ensure that a client or employer receives competent professional service
 based on current developments in practice, legislation and techniques.’

and

‘Members should act diligently and in accordance with applicable technical and
professional standards when providing professional services.’

In other words

Only perform work if you are competent to do so. Keep up to date with accounting
matters. Do not forget that as an ACCA member, you will have continuing professional
development (CPD) responsibilities – and you must ensure that you are keeping up to
date.

CONFIDENTIALITY

What the rulebook says

You ‘should respect the confidentiality of information acquired as a result of professional

and business relationships and should not disclose any such information to third parties
without proper and specific authority or unless there is a legal or professional right or
duty to disclose.’

and

‘Confidential information acquired as a result of professional and business relationships

should not be used for the personal advantage of members or third parties.’

In other words

Do not talk about your clients, or use information that you have learned about them for
your personal gain or for the gain of others. Maintain your silence even after the
professional relationship with the client ends.

PROFESSIONAL BEHAVIOUR

What the rulebook says

You ‘should comply with relevant laws and regulations and should avoid any action that
discredits the profession.’

In other words

Be courteous and considerate to people, and always behave so that a ‘reasonable and
informed third party’ who knows all the facts would also think you are acting
professionally.

SUMMARY

The fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality, and professional behaviour are international standards that accountants who are
members of IFAC professional bodies agree to follow through implementation of the IFAC Code
of Ethics.

Professing to higher standards of behaviour is something that professionals do. And these are
the standards that ACCA accountants must follow. As a student, it is important for you to
become familiar with them and to know that they also apply to you.