Unit 4: Professional Standards and Code of Conduct

Vocabulary flashcards covering the key terms and concepts of professional ethics and standards from the SAICA Code of Professional Conduct as outlined in the Public Sector Finance lecture.

SAICA

The South African Institute of Chartered Accountants, which publishes the Code of Professional Conduct for professional accountants.

Fundamental Principles of the Code of Ethics

The five essential principles establishing the standard of behaviour expected of a professional accountant: Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Professional Behaviour.

Integrity

A fundamental principle requiring a professional accountant to be straightforward and honest in all professional and business relationships, which involves fair dealing, truthfulness, and the strength of character to act appropriately.

Objectivity

A fundamental principle requiring a professional accountant to exercise professional or business judgement without bias, conflict of interest, or undue influence of, or undue reliance on, individuals, organisations, technology, or other factors.

Professional Competence and Due Care

A fundamental principle requiring a professional accountant to attain and maintain professional knowledge and skill at the required level, and to act diligently in accordance with applicable technical and professional standards.

Confidentiality

A fundamental principle requiring a professional accountant to respect the confidentiality of information acquired as a result of professional and business relationships.

Professional Behaviour

A fundamental principle requiring a professional accountant to comply with relevant laws and regulations, act in the public interest, and avoid any conduct that might discredit the profession.

Conceptual Framework

The approach established to assist a professional accountant in complying with the fundamental principles of ethics.

Disassociation

The required action taken by a professional accountant to remove themselves from association with reports, communications, or information that is materially false, misleading, provided recklessly, or omits required information.

Diligence

The responsibility to act in accordance with the requirements of an assignment, carefully, thoroughly, and on a timely basis.

Continuing Professional Development

Ongoing learning activities that enable a professional accountant to develop and maintain the capabilities needed to perform competently within the professional environment.

Section 45 of the Act

The legal provision requiring disclosures of reportable irregularities to be reported to the Regulatory Board, serving as an exception to the confidentiality principle.

Discrediting Conduct

Any conduct that a reasonable and informed third party would likely conclude adversely affects the good reputation of the accounting profession.