Certified Accounting Technician Program - Module 2 Notes

Certified Accounting Technician Program

Section 1: Accounting Technician in Place

  • Overview of what accounting technicians should know before starting practice.

  • Importance of ethics and standards in practice.

Module 2: Ethics and Standards for Accounting Technicians

Disclaimer and Copyright Notice

  • Copyright © Institute of Public Accountants June 2021.

  • Material may not be reproduced without permission.

  • Prepared material reflects legislation as of June 2021; may not be current.

  • Information intended for general guidance, not professional advice.

Table of Contents

  1. INTRODUCTION TO MODULE 2: ETHICS AND STANDARDS

    • Importance of professional ethics.

    • Overview of Australian accounting standards.

  2. AAT CODE OF ETHICS

    • Definition and importance.

  3. AUSTRALIAN ACCOUNTING STANDARDS BOARD

    • Overview and relevance.

  4. TPB CODE OF PROFESSIONAL CONDUCT FOR BAS AGENTS

    • Key principles and case studies.

  5. STATUTORY REGISTRATIONS

    • Various registrations required.

  6. RELEVANT LAWS FOR ACCOUNTING TECHNICIANS

    • Overview of key legislation.

  7. REGULATORY COMPLIANCE

    • Understanding compliance requirements.

  8. SUMMARY AND REVIEW

    • Key takeaways and reflection questions.

Introduction To Module 2: Ethics and Standards

  • Objective: Understanding the significance of ethics and standards from AAT and TPB perspectives.

  • Emphasizes the responsibility of being a BAS agent and accounting technician.

  • Video Presentation: Introductory video from Lielette.

1. AAT Code of Ethics

  • Minimum Standards: Set by the AAT Board for member ethical behavior.

  • Mandatory Compliance: Non-adherence may lead to disciplinary action by AAT.

  • Goals of AAT:

    • Maintain high ethical standards.

    • Enhance public trust and reputation.

  • Purpose of Code of Ethics: To protect public interest and uphold member reputation.

Pronouncement 1 - AAT Code of Ethics

  1. Introduction

    • Code applicable to all members; includes Members and Fellows.

    • Effective since 2 February 2007, aligned with IFAC guidelines.

  2. Ethical Guidance

    • Members encouraged to seek guidance and feedback from AAT or St James Ethics Centre when in doubt.

  3. Professional Responsibility

    • Emphasis on acting in public interest, beyond client needs.

  4. Characteristics of Professional Conduct:

    • Objectivity: Avoid conflicts of interest; prioritize public interest.

    • Professionalism: High service standards and ethical conduct.

    • Compliance: Required to submit to investigations and disciplinary processes.

2. Fundamental Principles

  • Required adherence to fundamental ethical principles:

    1. Integrity: Be honest in all dealings.

    2. Objectivity: Avoid bias and conflicts of interest.

    3. Professional Competence and Due Care: Maintain competence and skill; comply with standards.

    4. Confidentiality: Protect confidential information unless legally required to disclose.

    5. Professional Behavior: Comply with laws and avoid discrediting the profession.

Conceptual Framework Approach

  • Use a conceptual framework to identify, evaluate, and respond to ethical threats.

  • Evaluation of specific circumstantial threats that may compromise ethical principles.

  • Safeguards to be employed if threats are significant.

Threats and Safeguards

  • Categories of Threats to Ethics:

    • Self-interest threats: Personal financial interests affect judgment.

    • Self-review threats: Reviewing one’s own work.

    • Advocacy threats: Promoting a client’s position to the detriment of objectivity.

    • Familiarity threats: Over-familiarity with a client weakens objectivity.

    • Intimidation threats: External pressure to compromise objectivity.

  • Types of Safeguards:

    • Professionally-implemented Safeguards

    • Work Environment Safeguards: Policies to reinforce ethical behavior and reporting.

Ethical Conflict Resolution

  • Steps for resolving ethical dilemmas including assessing facts and options.

  • Documentation: Importance of documenting issues and discussions for transparency.

3. Relevant Laws for Accounting Technicians

  • Overview of significant legislation impacting accounting practices.

Key Laws Include:

  • Australian Taxation Office rulings for tax compliance.

  • Income Tax Assessment Acts 1936 and 1997.

  • Taxation Administration Act 1953 governing tax obligations.

  • Privacy Act 1988 for confidentiality and data protection.

4. Regulatory Compliance

  • Overview of compliance requirements for Certified Accounting Technicians.

  • Importance: Knowledge of regulations enhances professional integrity.

5. Summary and Review

  • Consolidation of ethical practices and importance of adherence to standards.

Reflection Questions:

  1. What is the significance of the Code of Ethics for AAT members?

  2. How do AASB standards affect practice?

  3. What methodology do you apply in ethical decision-making?

  4. How do you ensure statutory registrations comply with laws?

  5. Keeping up with legislative developments – strategies?

  6. Define 'regulatory compliance' and your plans to meet requirements.