Ethical Practice in Accounting: CPA Australia and Career Impact

This report provides an analysis of professional practice in accounting, with a focus on the role of CPA Australia in promoting ethical conduct and governance. It includes insights gained from interviews with accounting professionals in various fields, such as tax, auditing, and financial analysis. The report highlights the ethical dilemmas faced by accountants, the pressures they encounter, and the strategies they use to navigate these challenges. It also discusses the importance of professional development and the need for collaboration among practitioners, organizations, educators, and regulators to foster a strong ethical culture within the accounting profession. Furthermore, the report reflects on the implications of these insights for the author's own career, emphasizing the importance of adhering to ethical standards and seeking support from professional bodies like CPA Australia to enhance skills and knowledge in a dynamic market environment. The report concludes by stressing the significance of communication and ethical clearances in maintaining professional integrity and upholding the public interest.

Running Head: PROFESSIONAL PRACTICE IN ACCOUNTING 1
Professional practice in accounting
Name of the student:
Institution Affiliation:

PROFESSIONAL PRACTICE IN ACCOUNTING 2
Executive Summary
CPA Australia happens to be one of the largest accounting professional bodies which
have more than 163,000 members working in more than 125 countries. It offers services such
as advocacy, networking, training, education and technical support. Members and employees
collaborate together with international and local bodies to cater to the different concerns and
views of industries, governments, the general public, regulators, and academia (Daff, De
Lange, & Jackling, 2012). The major goal of CPA Australia is to have people who their
career will be well built in professional accounting skills. The corporate plan of CPA
Australia majors in having the global world best member service and engagement, offering a
world-class CPA certification and protecting the public interest (Grüber, 2014). CPA
Australia has a very important role to play globally which involves enhancing, promoting and
representing the accountancy profession. At a national level, this professional body acts as
the voice of the national professional accountants both in business and in practice (Deegan,
2014). This is because accountants play a major role in the society (Weygandt, 2014). The
status of the accountancy profession can be strengthened only when accountants in business
and practices are vowed accordingly by the society.
Mostly, professional accountants in business happen to be well qualified and trained
in an organization (Dagwell, Wines& Lambert, 2011). They greatly depend on the
professional accounting bodies when carrying out their duties. They depend on professional
accounting bodies to provide them with resources and support to even keep their skills up to
date. For example, accountants in business may seek advice from accountings bodies on how
to handle the different ethical dilemmas (Grüber, 2014). The accounting bodies must also
provide professional development inform of training to keep their skill updated.

PROFESSIONAL PRACTICE IN ACCOUNTING 3
Introduction
In this study, I interviewed various accountants working in a different field such as
tax agents, auditors, financial analyst, and students. The functions performed by accountants
working in the business filled are always forgotten (Ameen, Jackson, & Malgwi, 2010).
Besides these role accountants have other roles they play in businesses such as in non- sector,
regulatory bodies, public sectors and in academics. Accountants can play the different role
based on where they are stationed. However, one common thing about them is the knowledge
of accounting they have. Accountants are mandated to safeguard the integrity of financial
reporting. Accountants working in taxation, auditing and business must ensure progress and
stability in the society. However if the public does not understand the role of the accountants,
the public perception concerning their value may be miss informed (Marsden & Wolters
Kluer, 2017).
From the interview, I carried out I sought to know how CPA Australia ensures that
codes and ethics are respected by all their members (Deegan, 2014). I also sought to know the
different issues that arise in the said professional body and how it polices its codes (Dagwell
et al, 2011). This was to assist me in understanding my career better and to ensure that I act
professionally and ethically. This study was conducted to 228 accounting professionals who
are members of CPA Australia.
After gaining a degree, many people opt to become public accountants at the
beginning of their career. The choice of having to be employed or not depends on the salary
values that every person expects. Very few accountants opt to work in non-profit making
originations (Marsden & Wolters Kluer, 2017). Many opt to work in CPA companies because

PROFESSIONAL PRACTICE IN ACCOUNTING 4
they usually give them a chance to grow their careers by giving them important experience.
However many other accountants venture in the private sector which is normally lucrative.
Accounting career tends to have very many paths, and that's why every person need to know
the path he wants to take. One can start the accounting career by being a bookkeeper.
Bookkeepers are people who keep records such as invoices, revenues, and payments (Lange,
2015). Another area people can consider venturing into is becoming general accountants.
Similarities and differences between the professional body and the individual working
in a profession
Accountants get to be confronted by moral dilemmas in their line of duty. From the
interview carried out, I noted a number of tensions, pressure and ethical conflicts accountants
face when they are working (Daff et al, 2012). An ethical capability is a difference between
the desirable and the actual professional behaviors which determine ethical behaviors for
members of CPA Australia. Some of the major issues that professional face in the line of
their duty includes bribery, favoritism, misleading reports, fraud, misuse of funds and breach
of confidentiality. On the other hand accountants face a considerable amount of pressure
from clients more than pressure experienced in different employing organization (Dagwell et
al, 2011). However, accountants try to solve these issues through exercising moral courage,
documenting the issues, seeking advice from peers, and exercising professional judgment
(Cooper, 2010). However accountants usually show a lot of confidence in their professional
accountancy organizations, this is because their major role is providing ethical guidance
which is very important than the role of regulators and governments (Marsden & Wolters
Kluer, 2017). Therefore for CPA Australia to promote to promote ethical capability it needs
to consider strengthening advice services, having an ethical culture within the profession and
promoting education and training (Cooper, 2010). The great fear of many accountants

PROFESSIONAL PRACTICE IN ACCOUNTING 5
includes losing objectivity because of much pressure that comes from Clients, stakeholders,
and employers.
Despite these competing demands between upholding values that pertain to their
profession and meeting the demand of the real world, every accountant must learn how to
balance these competing demands (Mees& Brigden, 2017). Through which one is able to
show that he is a profession rather than only being able to perform some tasks . Accountants
professionals are expected to demonstrate some professional judgment when performing their
tasks so that when challenges arise, they will not lose the public trusts because they act as
protectors of public interest (Weygandt, 2014). Ethical codes all across the globe call for
professional accountants; regardless of the different roles they play to uphold competence,
due care, integrity, objectivity, professional behaviour, and confidentiality (Sumit& Lodhia,
2018). However competing pressures usually put accountants in the difficult situation. These
different conflicts comprise commercial pressures, the burden of regulation and ethics(Tracy
& OverDrive, 2013). Accountants are always faced with situations where they are meant to
assist the organization to achieve a certain financial target (Lange, 2015). In such a situation
the accountant may risk compromising compliance with the various codes and ethics
(Deegan, 2014). Accounts in business filed usually have a lot of tension in this situation. For
example, an accountant may face a lot of pressure to account for inventories with a higher
value than the actual value. On the other, some accountants are faced with situations where
they use some other accounting methods which are favorable to the organization. Some of
these actions are contrary to the codes and ethics of accounting standards or to what
accounting professionals are comfortable with.
Just like other professions, professional accountants are usually challenged when it
comes to capital markets and also in facing some new emerging issues in the market. The

PROFESSIONAL PRACTICE IN ACCOUNTING 6
value of an accountant is measured based on how they are accountable not only in the
organization but also to the public (Tracy & OverDrive, 2013). Accountants in business
happen to be pillars because they must assist in creating and sustaining growth and value.
How they handle this task is very important for them to continue being relevant in the market
(Mees& Brigden, 2017). They also must learn how to uphold quality financial reporting and
give the public the critical financial information
What these means to me as far as my career is concerned
Governance and ethics is an important component of skills and knowledge for
accountant professionals. As important decision markers, accountants must understand
compliance requirements, governance mechanism, and regulatory regimes to make sure that
they act according to the law (Deegan, 2012). A good understanding of corporate governance
framework and ethics are tailored to some subjects of the CPA program. In my own opinion
this subjects gives one knowledge and skills to be able to identify and solve some ethical and
professional issues (Deegan, 2012). The knowledge and skills gained are also important when
handling some functional disciplines such as financial reporting, advanced taxation,
Assurance, Advanced Audit, and strategic management (Weygandt, 2014). I have also
discovered that accountants do not involve themselves in traditional accounting functions
nowadays they mainly concerned with leadership and management (Deegan, 2012). Many
accountants have become leaders in the fields that most of them work important giving
support to the senior management and they are also involved in making key organization
decision. Thus ethics and governance are important to those accountants holding leadership
roles and those supporting their leaders.
From the research, I learned that professional accountants have some positive
attributes they are also well informed of the ethical issues and solutions but they constantly

PROFESSIONAL PRACTICE IN ACCOUNTING 7
seek support from accounting professional bodies for them to improve ethical practice and
ethical capability (Ameen et al, 2010). Thus it is always necessary for every professional
accountant to always be attached to the professional body such us the CPA Australia for him
to be able to improve his skills and knowledge as an accountant (Chaker & Abdullah, 2012).
This will greatly help me as an accountant since I will always be well informed because
markets have become dynamic.
Moreover, to improve the ethics in the accounting profession all practitioners such as
professional and employing organization, educators and regulators need to work closely
together to come up with principles and policies which prevent any conflict of interest
promoting high internalized ethical practices (CCH Editors, 2008). Coordination is necessary
when trying to achieve these and professional bodies play a very significant role in making
these happen.
From the study, I learned that communication from the professional body to the
members is very important. Before CPA Australia accepts any engagement with a member,
according to the code of ethics members are always advised to state the reasons why they
shouldn't do so(Jones & Jones, 2011). Giving an ethical letter or professional clearances
greatly helps in making these decisions. Ethical letters are very significant in ensuring that
people comply with ethical codes. Communication calls for professional courtesy and having
to maintain professional service (Blackwood, 2014). These ethical letters are not a must
unless when it comes to audit management (Sumit& Lodhia, 2018). However, they should be
just a matter of common practice (Jones & Jones, 2011). However being a member of CPA
Australia, one must adhere to the laws in the CPA Australia, Apes110 code of ethics for
professional accountants, constitution and by-laws. For CPA Australia to make sure that all

PROFESSIONAL PRACTICE IN ACCOUNTING 8
their members put up with these standards, the professional body has come up with a process
that makes sure that any complaint from their members are heard and solved effectively
Investigations and disciplinary actions are based on various principles such as the right to
appeal, independence, procedural fairness, and confidentiality (Whittington & Delaney,
2013). CPA Australia acts based on the public interest and must ensure that complains
concerning the members are well investigated while still preserving the rights of members
(CCH Editors, 2008). Thus it is necessary for every member to ensure that he acts according
to the constitution, by-laws, and codes of ethics. Currently, many organizations are focusing
on the ethics of professionals and individuals (Williamson, 2014). In recent times mega
bankruptcies have been reported which have greatly affected the market economy thus calling
for enforcement of ethics which are able to guide and bring regulation to the business
environment.
There are different governing bodies when practicing certified public accountants.
They include the AICPA principles and codes. These principles are necessary for my career
they include. Some of these principles include responsibilities. According to these principles,
every member must be sensitive to his work and also when making some moral judgment.
People also need to cooperate with each other to improve once skills and knowledge in
accounting (Blackwood, 2014). They also need to ensure that one gains the public trust.
Another principle that accountants need to adhere to is public interest. Accountants are called
to act in a way that is appealing to the public interest (Williamson, 2014). They need to honor
the public and also show that they are professions thus winning their trusts. Members are also
called to act based on the integrity (Chaker & Abdullah, 2012). This principle calls for
members to be honest in their work despite the pressures that surround them. They are also
called not to compromise when it comes to ethics. Integrity is usually evaluated based on

PROFESSIONAL PRACTICE IN ACCOUNTING 9
what is what is just and right. Integrity also calls for members to respect other principles such
as due care. Accountants also need to adhere to objectivity and independence. Every
professional accountant should maintain objectivity, and members should also not have some
personal interest when carrying out their tasks (Ameen et al, 2010). On the other hand,
independence calls for the accountant to maintain healthy relationships that will not affect
objectivity. To be independent members need to check their relationship with the clients
continually (Funnell & Cooper, 2012). Due care is another code that calls for members
always to keep ethical and technical standards while still working in improving the quality of
services they offer to customers. Due care, calls for excellence through being able to perform
tasks effectively.
Conclusion
Accounting professions are one career where ethics play a greater part. Thus every
accountant must always try to adhere to the codes of ethics set by the professional bodies.
Many things in an organization depend on accounts (Whittington & Delaney, 2013). The
progress of any business will always depend on the honesty of accountants (Funnell &
Cooper, 2012). Thus an accountant needs to be a straightforward person .Accounting is a
career that moulds accountants. They have a great responsibility of coming up with reliable
data which can be used to make current and future economic activities. Accountants usually
perform various duties such as preparing financial statements, planning tax strategy and also
calculating and computing tax. This tells that the accounting profession has different
beneficial career paths (Funnell & Cooper, 2012). Though careers in accounting resemble
each other, each has a specific focus. Thus accountants need to work very hard to advance
this sector.

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PROFESSIONAL PRACTICE IN ACCOUNTING 11
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Appendices
APPENDIX I: Interview Questions
The information given in this interview is confidential, and it is only used for research
purposes. Thus it is necessary for you not to indicate your name. Kindly be honest and
objective when giving the information. Give your answer by putting a tick or filling in the
blank space. However, some questions may have a number of answers.
Interview questions for CPA Australia members’ part1: General Information
How long have you been a member of CPA Australia?
How old are you?
How long have you worked as an accountant? (A) less than three years ( ) (B) 4-9 years( ) (d)
More than ten years
What is your education level? (a) Certificate holder ( ) (B) Degree holder ( ) (c) others ( )
kindly specify
Part 11: Interview questions for accounting professional both in business and practice.
5. Does being a member of CPA Australia affect your career (a) yes ( ) (b) No
If yes how?
6. Are you aware of CPA Australia codes of ethics as well as your organization procedures
and policies
7. How have these codes affected your behaviors and those of your supervisors and peers?
6 What are the consequences of breaching these codes of ethics?

PROFESSIONAL PRACTICE IN ACCOUNTING 14