Analysis of Professional Codes of Conduct for UK CPAs, 2016

This report examines the codes of professional conduct for Certified Practising Accountants (CPAs) in the UK, emphasizing their role in ensuring ethical compliance and maintaining the profession's reputation. It highlights key principles such as professionalism, integrity, objectivity, and due care,...Read More

Accounting questions

Table of Contents
MEMO..................................................................................................................................................3
REFERENCES.....................................................................................................................................5
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MEMO
To: John Minor
From: Dan Lionel
Date: 19th September, 2016
Subject: Codes of professional code for CPA
Certified Practising Accountants (CPA) are the members of ICPA who are highly skilled and
experienced in accounting work. They have responsibility to judge and verify the accuracy of the
financial statements of the organizations through their great knowledge. In UK, it is the
responsibility of CPA to carry out their work by taking into account the professional code and
standards so as to ensure the ethical compliance. It is the legal obligations for the CPAs to follow
such standards and thereby maintain accountability and good reputation of their profession.
Professionalism is the most important aspect which describes that all the CPAs must exercise their
job responsibilities in professional manner (Whitaker, 2016). In such respect, they are adhering with
the professional rules and regulations, laws and numerous ethical principles such as confidentiality,
objectivity and integrity, due care, competence, independence etc. In this, professionalism principle
states that CPA should verify the truth and fairness of the financial statement of the companies to
make moral and ethical judgment. Moreover, according to section 54 of 3rd Article, it is important
for CPA to give professional services and advices to the clients with maintaining high level of
integrity. It demonstrates that CPAs must perform their activities honestly and truthfully to maintain
ethnicity (Aveh, Awunyo and Owusu, 2016). Furthermore, they need to follow the respective
values, principles and actions consistently throughout the period, so that, integrity can be
maintained. By performing work in ethical manner, they will be able to make professional
judgement of the respective issues and conflicts. This in turn, public confidence can be raised on the
services provided by CPA. Apart from this, section 55 of 4th Article states that objectivity is also an
important principle which says that the decisions of accountants must be free of biasness as well as
undue influences. CPA should only focus to carry out their professional services independently
without any comprised bias and other party influences. They should discharge their duties and
responsibility such as auditing and attesting facilities free from conflicts of interest.
Furthermore, in every profession, it is an obvious requirement for the professionals to
conduct all the activities and functions carefully. In section 56 of 5th article of professional code and
standards, due care principle has been mentioned (CPA Code of Professional Conduct, 2016).
According to this, it is the liability of CPAs to put their necessary efforts prudently and with
reasonable care, so that, the possibility of harm can be prevented in special circumstances.
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Accountants have to exercise required acts through their technical expertise and also strive
continuously to render best quality professional services to the businesses. While, on the other hand,
competence of work can be maintained by regularly adhering to the principles, codes and practices,
so that, the level of public confidence can be improved and ethical judgement can be taken by the
CPAs. Adhering to the principles, legislations and standard code of conduct helps accountants to
work ethically and thereby maintain trust on rendered professional services.
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REFERENCES
Books and Journals
Aveh, F. K., Awunyo, V. D. and Owusu, A. R., 2016. Code of Ethics compliance by accountants in
Ghana. African Journal of Accounting, Auditing and Finance. 5(2). pp. 135-154.
Whitaker, S., 2016. Ethics and Professional Conduct. Apress.
Online
CPA Code of Professional Conduct. 2016. [PDF]. Available through: <
http://www.cpaontario.ca/Resources/Membershandbook/1011page20931.pdf>. [Accessed on
19th September 2016].
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