Ethics Module - Overview of Professional Conduct

These flashcards cover key vocabulary and definitions about ethics, professional conduct, and relevant codes for auditors, based on the lecture notes.

Ethics Definition

A set of principles of right conduct and a theory or a system of moral values.

Code of Ethics

Fundamental principles that guide ethical decision making for professionals.

Principle-based approach

An approach that provides a conceptual basis for ethical guidance rather than strict rules.

Rules-based approach

An approach emphasizing compliance with specific rules or laws governing conduct.

Integrity

The quality of being honest and having strong moral principles.

Objectivity

The ability to make decisions without being influenced by personal interest.

Confidentiality

The ethical principle of keeping client information private and protected.

Professional Competence

The obligation to maintain knowledge and skills necessary for professional development.

Improper Conduct

Actions by a professional that violate ethical standards or principles.

Disciplinary process

The procedures followed by professional bodies to address unethical behavior.

Fundamental Principles

Core values that guide the behavior and decision making of professional accountants.

SAICA Code of Professional Conduct

The code that outlines ethical expectations for registered auditors in South Africa.

IRBA Rules

Regulations set by the Independent Regulatory Board for Auditors regarding auditor conduct.

Professional Behaviour

Conduct that is consistent with the responsibilities and expectations of the accounting profession.

Self-interest threat

A situation where a professional could be influenced by personal financial interests.

Familiarity threat

A threat to objectivity arising from prolonged or close relationships with clients.

Advocacy threat

A threat arising when a professional promotes a client's position to the detriment of objectivity.