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The International Federation of Accountants (IFAC) believes that while national accountancy organizations are responsible for developing their own ethical codes, there should be common principles across countries. IFAC established an International Code of Ethics to serve as a model for national codes. This code sets standards of conduct and principles that should be observed by professional accountants worldwide. However, national requirements take precedence over any conflicts with the international code. The document discusses the important role of accountants in society and how upholding high ethical standards is important to maintain public trust. It also stresses the need for national ethical codes to consider public expectations.

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3K views3 pages

Local Literature

The International Federation of Accountants (IFAC) believes that while national accountancy organizations are responsible for developing their own ethical codes, there should be common principles across countries. IFAC established an International Code of Ethics to serve as a model for national codes. This code sets standards of conduct and principles that should be observed by professional accountants worldwide. However, national requirements take precedence over any conflicts with the international code. The document discusses the important role of accountants in society and how upholding high ethical standards is important to maintain public trust. It also stresses the need for national ethical codes to consider public expectations.

Uploaded by

John Zoren Hugo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Local Literature

As cited by Evangelista (2008) in the book entitled Code of Ethics for Professional Accountants
in the Philippines & Code of Corporate Governance, the International Federation of
Accountants (IFAC) believes that due to the national differences of culture, legal and social
systems, the task of preparing detailed ethical requirements is primarily that of the member
bodies in each country concerned and they also have the responsibility to implement and enforce
such requirements.

However, IFAC believes that the identity of the accountancy profession is characterized
worldwide by its endeavor to achieve a number of common objectives and by its observance of
certain fundamental principles for that purpose.

IFAC, therefore, recognizing the responsibilities of the accountancy profession as such, and
considering its own role to be that of providing guidance, encouraging continuity of efforts, and
promoting harmonization, has deemed it essential to establish an International Code of Ethics for
Professional Accountants to be the basis on which the ethical requirements (code of ethics,
detailed rules, guidelines, standards of conducts, etc.) for professional accountants in each
country should be founded.

This international Code is intended to serve as a model on which to base national ethical
guidance. It sets standards of conduct for professional accountants and states the fundamental
principles that should be observed by professional accountants to achieve common objectives.

The accountancy profession throughout the world operates in an environment with different
cultures and regulatory requirements. The basic intent of the Code, however, should always be
respected. It is also acknowledged that, in those instances where national requirement is in
conflict with a provision in the Code, the national requirement would prevail. (Evangelista,
2008, p. 11)

Nowadays, the field of accounting in the local industry is continuously growing and professional
accountants having high regards to code of ethics are greatly in demand. Being a certified public
accountant doesnt just end of having a noble title and high degree of academic credentials but he
should be committed in all of the duties and responsibilities entrusted to him.

As cited by Evangelista (2008), Professional accountants have an important role in society.


Investors, creditors, employers and other sectors of the business community, as well as the
government and the public at large rely on professional accountants for sound financial
accounting and reporting, effective financial management and competent advice on a variety of
business and taxation matters. The attitude and behavior of professional accountants in providing
such services have an impact on the economic well-being of their community and country.
(Evangelista, 2008, p. 13)

Professional accountants can remain in this advantageous position only by continuing to


provide the public with these unique services at a level which demonstrates that the public
confidence is firmly founded. It is in the best interest of the worldwide accountancy profession to
make known to users of the services provided by professional accountants that they are executed

at the highest level of performance and in accordance with ethical requirements that strive to
ensure such performance.

In formulating their national code of ethics, member bodies should therefore consider the public
service and user expectations of the ethical standards of professional accountants and take their
views into account. By doing so, any existing expectation gap between the standards expected
and those prescribed can be addressed or explained. (Evangelista, 2008, pp. 13-14)

Reference:
Evangelista R. (2008). Code of Ethics for Professional Accountants in the Philippines & Code of
Corporate Governance. Manila, PH: Conanan Educational Supply.

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