Code of Ethics for Professional Accountants

A professional code of ethics usually comprises of principles that ought to govern individual or group behaviour within a business environment. Codes of ethics inform conduct between individuals, groups and also with institutions (Espinosa-Pike & Barrainkua-Aroztegi, 2014). These principles differ from one profession to another, although there are some that are applicable to all professions. These include accountability, honesty, trustworthiness, respect, loyalty, and adherence to the law among others. Codes of ethics are important in ensuring employees behave in a manner that is both socially and professionally acceptable. This report explores the code of ethics for professional accountants and compares/contrasts it to that of internal auditors and nurses (Grace, 2017). The aim of the paper is to draw any similarities and differences between the three sets of professional codes of ethics, and to provide possible explanations for the similarities or differences.

The core Code of Ethics that guide professional accountants include objectivity, confidentiality, integrity, professional behaviour, due care and diligence, and professional competence (Kung & Huang, 2013). Under integrity, professional accountants are required to exhibit utmost honesty while handling financial information to assist the organization in making informed financial decisions. It also implies being truthful and engaging in fair deals. In regard to integrity of information, professional accountants should desist from association with information that is false or misleading, has been provided recklessly, or has been obscured or omitted in a manner that makes it misleading. This implies that association with such information is in breach of the principle of integrity Kung & Huang, 2013). In such cases professional accountants are required to dissociate themselves from such information.

 Objectivity demands that professional accountants do not compromise their judgement on the basis conflict of interest, undue influence, prejudice, or bias. It is mandatory that all accountants exercise due care and diligence in the profession. This means that they have to attain the required technical skills, knowledge, and abilities so that clients, employer, and other interested parties get their desired results and services from them (Pattison, 2016). Also, they should act diligently in the course of exercising their professional services.

The ethic of confidentiality relates to the treatment of information acquired from professional and business relationships Kung & Huang, 2013). Professional accounts should respect the confidentiality of such information by not disclosing it to third parties without the relevant authority to do so. This includes unintended disclosure by the professional accountant (Gaumnitz & Lere, 2012). Additionally, the same information should not be used to gain personal advantage by professional accountants or third parties. Professional accountants should also be able to maintain the confidentiality of information provided by prospective clients or their employers (Pattison, 2016). Confidentiality of information should be maintained even after a professional or business relationship has run its course. In the same breath, professional accountants should ensure that those working under them, including consultants, respect their obligation to confidentiality (Pattison, 2016). In the end confidentiality promotes free flow of information and serves the public interest.

Code of Ethics for Internal Auditors

However, there are circumstances when professional accountants may be required to disclose confidential, including when such disclosure is deemed appropriate (Pattison, 2016). Legally, for instance, disclosure may be required as part of evidence in legal proceedings, or to relevant public authorities in case of infringements of the law when such information comes to light. Confidential information may also be disclosed if it is allowed by law, the client or employer (Saemann & Crooker, 2019). Even when not permitted by law, there may be a professional duty to disclose in certain circumstances including; compliance with reviews of a professional body, response to investigation and/or inquiries by a regulatory or professional body, compliance with professional and technical standards which include ethical considerations, and to preserve an accountant’s professional interests in legal proceedings (Pattison, 2016). There are several factors to consider before deciding on whether or not to divulge confidential information. They include considering whether disclosure will harm the interests of any parties involved, if information is substantiated (including incomplete, unsubstantiated facts and conclusions), type of communication to be utilized including the designated recipient, and whether these recipients are appropriate.

The ethic of professional behaviour pertains to behaviour that is compliant to the laws and regulations that govern professional accountants, with caution to avoid acts that discredit the profession (Lenz, 2018). Such professional behaviour also extends to marketing and other promotional activities, in which case professional accountants should desist from making exaggerated claims about the services they offer, including their knowledge, qualifications, and experience in the same. Also, professional accountants should not discredit or make unsubstantiated comparisons to other’s work. Whenever in doubt concerning any of the above ethical principles, professional accountants are encouraged to consult with the appropriate professional bodies (Pattison, 2016)

  The application of these principles is spread out to cover different settings in which professional accountants operate. These include those in business and public practice. Professional accountants in business may be employees, partners, contractors, directors, managers, volunteers, or owners of an employing organization (Lenz, 2018). Professional accountants may also be engaged in public practice or their firms. Regardless, there are situations in which professional accountants may find themselves in a conundrum, whereby compliance with one ethical principle may conflict with the compliance of another or more. In such cases, they are allowed to consult legal counsel, professional and regulatory bodies, governance authorities, and/or colleagues within their workplace (Lenz, 2018). In the same breath, there may be threats to compliance with ethical principles created by a broad range of circumstances. Such threats may fall into the following categories: self-interest, self-review, advocacy, familiarity, and intimidation. One situation may result in multiple threats, while a particular threat may impede compliance with multiple ethical principles (Harris, 2010).

Code of Ethics for Nurses

The code of ethics for internal auditors comprises of both principles and rules of conduct, the latter of which guides the practical application of the former. The fundamental ethical principles for the profession of internal auditors are similar to those of professional accountants (Lenz, 2018). They are integrity, objectivity, confidentiality, and competence. Integrity is aimed at establishing and maintaining trust and is used as a basis for judgement and decision making among internal auditors (Sam, Sumarlin, & Suhartono, 2019). The rules of conduct that guide the principle of integrity for internal auditors include: performing their jobs honestly, diligently, and responsibly; adhere to the law and only disclose information if permitted by the law and the profession, desisting from illegal activities and acts that discredit the profession, and to honour and work towards enhancing the ethical and valid objectives of the organization (Lenz, 2018). The same applies to professional accountants who are required to be honest in their work. However, professional accountants draw special focus on the integrity of information, particularly how it is acquired, its nature, and how it is used (U?urelu & Loghin, 2016). The profession of internal auditors does not explicitly mention the need for integrity in the acquisition and handling of information.

The principle of objectivity requires that internal auditors be at their utmost professional selves when collecting, evaluating, and communicating information on the processes being examined (Cabrera-Frias, 2012). They should be objective and balanced in their assessment of various circumstances, without being influenced by personal and external interests, which would impact on their judgement. The rules of conduct associated with the principle of objectivity include not participating in activities and relations that may impact negatively on their unbiased assessment (Sadowski & Thomas, 2012). This includes activities and relations that may present a conflict of interest for the organization. Internal auditors are also not expected to receive anything, such as gifts, which may presumably or actually impair their professional judgement. They are also required to disclose all facts which if not disclosed may alter the reporting processes that may be under review. Just as professional accountants, professional internal auditors are encouraged to steer clear from relationships and activities that will create a conflict of interest and compromise their ability to make sound judgements (Ibrahim, 2012). However, objectivity among professional accountants does not cover the disclosure of material facts, like that of professional internal auditors (Vanasco, 2014).

Comparison and Contrast of the Three Codes of Ethics

Nursing is a non-business profession. In Australia for example, the Code of Ethics for Nurses has been developed to guide the nursing profession being practiced in the country. This Code of Ethics for Australian nurses is applicable and relevant at all areas and levels of practice including those entailing education, clinical, research, and management domains (Donkor & Andrews, 2011). The Code of Ethics for Nursing profession include: (1) nurses must value quality nursing care for all clients, 92) nurses uphold ethical management of client information, (3) nurses uphold diversity of clients, (4) nurses value self-respect and respect for others, (5) nurses value the principle of informed decision-making, (5) nurses value access to quality health care and nursing for all clients, (6) nurses value a culture of safety in health care and nursing practice, (7) nurses uphold economically, socially, and ecologically sustainable environment potent of upholding wellbeing and health for all clients, and (8) nurses uphold a safety culture through which healthcare and nursing thrives (Vanasco, 2014).

In addition, this Code of Ethics for Nurses is broken down into nine provisions. Under the 1^st provision, the Code of Ethics contains the principles of respect for dignity, good relationship to clients, the nature of health, right to self-determination, and relationship with nurse colleagues and others (Lenz, 2018). Under the 2^nd provision, the Nursing Code of Ethics encompasses collaboration, conflict of interest, professional boundaries, and primacy of the client’s interests. The 3^rd provision requires ultimate protection of client’s privacy and confidentiality, protection of professionals doing nursing research, client protection and impartial practice, review standards and performance mechanisms, and protection of patient health and safety (Lenz, 2018). Provision four requires full authority, responsibility, and accountability and at the same time impartial delegation of nursing tasks to the competent nurses. It also provides for nursing decisions, judgement, and action. In the 5^th provision, this provides for preservation of integrity, duty of self and duty to others, personal growth, and maintenance of professional growth and competence (Lenz, 2018). Provision six requires ethical and environmental obligation, responsibility for healthcare climate, and a conducive environment for moral values and virtues. Provision seven seeks to contribute to nursing tasks through health policies, professional standards, and research. Provision eight recognizes health as a universal right and that professionals must collaborate to uphold health. In the last provision, this provides for articulation of values, integration of social justice, and integrity of profession (Lenz, 2018).

Explanations for the Similarities or Differences

The objective of establishing the Code of Ethics for Nurses is to guide them in ethical practice and decision making while interacting and handling diverse clients and their information in the workplace (Lenz, 2018). Also, Code of Ethics for Nurses help in the identification of ethical values and standards to which nursing professionals are focused and committed to uphold while in practice. Unlike the professional Code of Accountants and Internal Auditors, the Code of Ethics for nursing profession is incorporated in other endorsed professional nursing standards and guidelines of conduct (Lenz, 2018). In addition, Nursing Code of Ethics provides nurses with a reliable point of reference from which to have a reflection on the conduct of themselves as well as that of others. According to (Triyuwono, 2015), Nursing Code of Ethics indicates to the clients and community at large the ethical values and human right standards it expects the professional nurses to uphold. However, just like the professional Code of Ethics for accountants and internal auditors, the published standards and codes of ethics for Nursing profession act as a reference point for decision-making while in practice (Andon, Chong, & Roebuck, 2010). Also just the Code of Ethics for Accountants and internal auditors, the Code of Ethics for Nurses provides a framework for responsible and accountable practice.

In comparison to the Code of Ethics for professional accountants, these codes of practice differ to some extent (West, 2017). While the Code of Ethics for nurses requires a nurse to uphold respect, compassion, and multicultural competence working with a patient, this is not the case in accountancy. Accountants endeavour to uphold due care and professional competence. In the Code of Ethics for accountants, an accountants just needs to maintain confidentiality, there is nothing like compassion or being emphatic while creating accounting and audit reports (West, 2017). However, the Code of Ethics for professional nurses, accountants and internal auditors resemble each other in various ways.

In the three profession’s Code of Ethics, confidentiality, integrity, informed consent, dual relationships, and professional competence must be upheld (West, 2017). The Code of Ethics for Nurses provides that nurses be of top integrity and maintain utmost confidentiality while handling diverse clients’ and their information. Patients’ personal data and information is very confidential and must not be leaked to third parties without their consent. Also in nursing profession, professional nurses must not engage in any practice where dual relationships exist (West, 2017). Similarly, the Codes of Ethics for accounting professionals require that an accountant exercises utmost integrity and confidentiality when handling financial information and in the interpretation of a client’s financial report (Ziegenfuss & Singhapakdi, 2014). Here, wholeness of character is very key and accountants are required to maintain utmost competence and professional growth while in practice. In addition, the Code of Ethics for accountants restricts the establishment of dual relationships, because this limit independence and financial reports and statements might be compromised. Nevertheless, the Code of Ethics for internal audit requires that auditors exhibit integrity and confidentiality while giving audit report and opinion. Any relationship with a family, friend, or colleague in audit is prohibited. Here, professional competence requires that internal auditors be independent and give unqualified opinion that depicts the true affairs of the company’s internal operations (West, 2017).

The Code of Ethics for both internal auditors and professional accountants is similar in almost all areas. In both, the Code of Ethics seeks to ensure objective assurance about risk management, governance, control, and accountability. The main principles and values governing these two areas include integrity, objectivity, confidentiality, professional competence, and professional behaviour (Thompson, 2017). Just like in internal audit, professional accountants are required to be highly objective. The reputation of a company depends on the actions of both accountants and internal auditors. These actions deserve to be of top integrity. In order to make objective and fair decisions over the company’s financial affairs and matters, it is essential that both accountants and auditors avoid activities and relationships that may hurt, or appears to hurt this role (West, 2017). This Code of Ethics helps both accountants and internal auditors to avoid conflicts of interest that are highly potent with other employees and stakeholders who have a significant financial interest in the company. Also, confidentiality, integrity, objectivity, professional competence, and professional behaviour are set to guide accountants and internal auditors in protecting the assets of a company (Thompson, 2017). Thus, accountants and internal auditors must avoid corruption, bribery, conflict of interest, absence without notice, harassment, and unpunctual behaviours while at work. The point here is putting the general interest of the company above self-interest while discharging their accountancy and internal audit responsibilities.

In addition, the Code of Ethics for accountancy, internal audit, and nurses provide that professionals be guided by general interest of the company and not by self-interest. Self-interest is a major threat to the reputation of a company (Bandman & Bandman, 2012). Also, the Code of Ethics for these three professions value informed decision making, ethical management of information, and respect of professionalism and others. Successful professionalism starts within the individual, and this is the importance of self-respect and respect of others (Thompson, 2017). A professional who respects him/herself finds it very easy to respect other professionals and people. In the same content, respect calls for ethical management of information. In accountancy, accountants must keep the company’s accounting records confidential as per the set guideline, values, and policies within the company. Similarly, internal audit employees are required to ensure that the audit records and reports are handled ethically and with utmost care to help protect their independence (Banks, 2016). Also, by protecting independence, auditors are acting with utmost respect to the company’s stakeholders. Also similarly, nurses thrive by respecting their clients and ensuring ethical management of client’s information. A professional nurse is not expected to share a patient’s personal or confidential information to unauthorized parties; this is meant to enhance respect for the patient. In the three also, it is important to value quality and prudence.

Nevertheless, the Codes of Ethics in nursing also has another difference with the Codes of Ethics for accountancy and internal audit. Although the main objective of setting these codes of ethics resemble each other, the specific guideline and the manners in which these codes are applied differ (Avram & ?ogoe, 2012). While the nurse shares responsibility with a client in the promotion of health and safety, the wholeness of a nurse is defined by his character. Unlike this, the Codes of Ethics for accountancy and internal audit requires that these professionals only share ideas with colleagues, and their wholeness of character is defined by their ability to maintain integrity, professional competence and objectivity. Although this is also true in the nursing Code of Ethics, nurses can be rated as more professionals by the way they interact with patients, attend to them, and show concern to their health, wellness, and wellbeing (Thompson, 2017). Again, health policies are vital in the nursing profession; this is not the case in the other two professions who rely only on professional body guidelines (Alfred et al., 2013). Still, while a nurse can be consulted for other clinical affairs, professional accountants and internal auditors are required to strictly adhere with their areas of profession; any expansion of service is highly punishable by law and by the professional body.

Conclusion

Every profession is guided by a Code of Ethics which all professionals must abide with. The most common Codes of Ethics for all professions include integrity, professional competence, and objectivity, due care, objectivity, and professional behaviour. Among the top areas of professional include accounting, nursing, and auditing. In the three professions, professionals must always protect a client’s information against any access to third parties unless they first acquire the consent to do so. Also, they must exhibit professional competence must safeguarding and protecting a client’s information, ensure that the client’s report is free from prejudice, there is due care and diligence, and that its interpretation is not compromised by outside parties. In addition, professional behaviour provides that all professionals respect their professions, respect their clients, and defend their independence while handling client’s reports. Failure to abide with the set Code of Ethics in any profession is punishable by the law.

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