Article Review

After reading this article for a few minutes, finally I can conclude that it is mainly take a
review on “What is Code of Ethics” . A code of ethics is a set of guidelines which are designed
to set out acceptable behaviors for members of a particular group, association, or profession.
Many organizations govern themselves with a code of ethics, especially when they handle
sensitive issues like investments, health care, or interactions with other cultures. In addition to
setting a professional standard, a code of ethics can also increase confidence in an organization
by showing outsiders that members of the organization are committed to following basic ethical
guidelines in the course of doing their work.

An ethical code is adopted by an organization in an attempt to assist those in the

organization called upon to make a decision (usually most, if not all) understand the difference
between 'right' and 'wrong' and to apply this understanding to their decision.

Ethical Codes are often not adopted by management because of some over-riding
corporate mission to promote a particular moral theory but accepted by management as
pragmatic necessities in running an organization in a complex society in which moral concepts
inevitably play an important part.

They are distinct from moral codes that may apply to the culture, education, and religion
of a whole society. Of course, certain acts that constitute a violation of ethical codes may also
violate a law or regulation and can be punishable at law or by government agency remedies.

Even organizations and communities that may be considered criminal may have their
own ethical code of conduct, be it official or unofficial. Examples could be hackers, thieves, or
even street gangs.
 In this context, writer is a member of IFA ( International Federation of Accountants) and
he keep on thinking whether it is moral behaviour to take your time(as a accountant) drinking
one cup of coffee during lunchtime period in a busy café . The writer keep on questioning why
don’t that person choose any other places that are more ‘comfortable’ and meet up with his
client comfortly . As we should know, an accountant should follow and look further at the
fundamental of the code of ethics .
A code of ethics is a set of guidelines which are designed to set out acceptable
behaviors for members of a particular group, association, or profession. Many organizations
govern themselves with a code of ethics, especially when they handle sensitive issues like
investments, health care, or interactions with other cultures. In addition to setting a professional
standard, a code of ethics can also increase confidence in an organization by showing outsiders
that members of the organization are committed to following basic ethical guidelines in the
course of doing their work.

An ethical code is adopted by an organization in an attempt to assist those in the

organization called upon to make a decision (usually most, if not all) understand the difference
between 'right' and 'wrong' and to apply this understanding to their decision.

The latest IFA Code of Ethics and Best Practices contain a comprehensive document
and have been developed as the standards for all over the world. Amazingly, it is based on ,
instead of rules. On the other hand, obviously,the most useful feature is the method of self-
examination proposed which helps you to decide whether an action is ethical-right or wrong,
and also identifies threats with safeguards to help you counter those threats.

The code of ethics are based on five principle that is ; integrity, objectivity, professional
competence and due care, confidentiality and professional behaviour. The code explains these
principles and gives examples of their use for professional accountant in practice.

On the other side, the threats are; self-interest threats,self-review threats,familiarity

threats, intimidation threats, and advocacy threats.

The safeguards here means,if you think there is a threat then u should assess whether
the threats is significant, then take any necessary action to remove it.

In the nutshell, the IFA Code of Ethics contain five principle and it has ‘threats and
safeguards’ approach to resolving ethical issues. Therefore, the action of the accountant as a
professional person should follow the IFA Code of Ethics guidance.

~Financial Accountant,July/August 2010~

Writer: Martin Nimmo, IFA professional standards manager.