The Ethical Role of a Professional Accountant

MANAGEMENT
MANAGEMENT
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Table of contents
Introduction......................................................................................................................................4
PART A: The ethical role of a professional accountant..................................................................4
Fundamental Principles of an ethical code......................................................................................5
Integrity:.......................................................................................................................................5
Objective:.....................................................................................................................................5
Confidentiality:............................................................................................................................5
Professional Competence:............................................................................................................6
Professional behavior:..................................................................................................................6
The three ethical dilemmas..............................................................................................................6
1. Conflicts of interest...........................................................................................................6
Effects to fundamental principal:.................................................................................................7
2. Self - Interest.....................................................................................................................7
Effects to fundamental principles:...............................................................................................7
3. Pressure from Management..............................................................................................7
Effects to fundamental principal:.................................................................................................8
Identified relevant facts on ethical dilemma....................................................................................8
Unethical effects..........................................................................................................................8
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Affected parties............................................................................................................................8
Affected reputation of professional accountants..........................................................................8
The solutions and safeguard to ethical dilemmas............................................................................9
Threats to compliance......................................................................................................................9
Self-interest:.................................................................................................................................9
Self-review:................................................................................................................................10
Advocacy:..................................................................................................................................10
Familiarity:.................................................................................................................................10
Intimidation:...............................................................................................................................11
Safeguards..................................................................................................................................11
Conceptual Framework Approach.................................................................................................13
PART B: The role of professional accountants in sustainable development.................................14
Sustainability.................................................................................................................................15
Issues and solutions for sustainability...........................................................................................16
1. Lack of experience, knowledge, and skills............................................................................16
2. The high cost of accounting system.......................................................................................16
 Economic:.......................................................................................................................17
 Social:..............................................................................................................................17
 Environmental:................................................................................................................17
Conclusion.....................................................................................................................................18
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References......................................................................................................................................18
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Introduction
The accountancy profession is a responsibility of action to satisfy an employer or the individual.
A professional accountant must comply with their working with ethical behavior that involves
some fundamental principles and professional ethics that can be applied to the conceptual
framework. In accountancy, the conceptual framework helps the accountants to get guidance on
the ethical principles. The conceptual framework also helps in identifying the threats to
compliance to address the threats and ethical dilemmas.
In part A of this assignment, the ethical dilemmas and how the conceptual frameworks can be
applied to solve the ethical dilemmas of accountants will be discussed. In Part B of this
assignment, the accountant’s sustainability and the significance of organizational sustainability
will be involved also with the measurements of challenges and issues being faced to manage the
sustainability of organizations.
PART A: The ethical role of a professional accountant
A professional accountant's responsibility is to behave in the most ethical and professional
behavior all the time. The role of a professional accountant is also to promote, create and
maintain an ethical culture within the organization they are working or along with the clients,
there are practicing. An accountant also has a great deal of responsibility and the role that may
subject to the scrutiny of their local community. In particular, the business and clients expect a
high level of services from their accountant, so the accountants must have that ethical behavior
that shows their integrity to be unquestionable (Berman et al. 2019).
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Professional accountants also have a responsibility to give the best services to their clients. The
ethical codes help to fulfill their responsibility by addressing the circumstances that may arise
which not be compromised. Accountants should also know their ethics to work in the best
interest of their clients. However, they are also responsible to act on their public interest that
requires an objective that needs to be exercised every time. The accountants also face many
ethical dilemmas during their duties that cannot be reconciled quite easily. The three major
ethical dilemmas that accountants face are given below(Hislop, Bosua and Helms 2018)
Fundamental Principles of an ethical code
The professional accounts are required to follow the below fundamental principals
Integrity:
The professional accountants must be honest and straightforward in their decision by
giving an honest review of the company and also in all other professional relationships
(Goodland2019).
Objective:
The professional accountants must not be biased, or should not be influenced by others
according to their business judgments and override professional behavior.
Confidentiality:
The professional accountants must have an ethical code of conduct that is to respect the
information and confidentiality of a business or any other professional relationship they
are dealing with. The accountants must not disclose any information to the third party
without any specific authority unless if they have any professional or legal authority to
disclose it. The confidential information in business and the professional relationship
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