FUNDAMENTAL PRINCIPLES

FUNDAMENTAL PRINCIPLES
In order to achieve the objectives of the Accountancy profession,
professional accountants have to observe a number of prerequisites or
fundamental principles. The fundamental principles are :-
* Integrity
A professional accountant should be straightforward and honest in
performing professional services.
* Objectivity
A professional accountant should be fair and should not allow prejudice or
bias, conflict of interest or influence of others to override objectivity.
* Professional Competence and Due Care
A professional accountant should perform professional services with due
care, competence and diligence and has a continuing duty to maintain
professional knowledge and skill at a level required to ensure that a client or
employer receives the advantage of competent professional service based on
up-to-date developments in practice, legislation and techniques.
* Confidentiality
A professional accountant should respect the confidentiality of information
acquired during the course of performing professional services and should
not use or disclose any such information without proper and specific
authority or unless there is a legal or professional right or duty to disclose.
* Professional Behaviour
A professional accountant should act in a manner consistent with the good
reputation of the profession and refrain from any conduct which might bring
discredit to the profession. The obligation to refrain from any conduct
which might bring discredit to the profession requires IFAC member bodies
to consider, when developing ethical requirements, the responsibilities of a
professional accountant to clients, third parties, other members of the
accountancy profession, staff, employers and the general public.
* Technical Standards
A professional accountant should carry out professional services in
accordance with the relevant technical and professional standards.
Professional accountants have a duty to carry out with care and skill, the
instructions of the client or employer in-so-far as they are compatible with
the requirements of integrity, objectivity and in the case of professional
accountants in public practice, independence. In addition they should
confirm with the technical and professional standards promulgated by :-
- IFAC (e.g. International Standards on Auditing);
- International Accounting Standards Board;
- The Member’s professional body or other regulatory body; and
- Relevant legislation.
* Independence
When in public practice, an accountant should both be, and appear to
be, free of any interest which might be regarded, whatever its actual effect,
as being incompatible with integrity and objectivity.
 The over-riding motto has been ‘pride of service in preference to
personal gain’. A code of professional conduct may have the force of law,
as is the case in this country in some matters, as well as the result of
discipline and conventions voluntarily established by the members, any
breach whereof would result in the person being dis entitled to continue as a
member of the professional body. In any event, it has a great deal of
practical value in so far as it proclaims to the public that the members of the
profession will discharge their duties and responsibilities, having regard to
the public interest. This, in turn, will give an assurance to the public that in
the event of a member straying away from the path of duty, he would be
suitably dealt with by the professional body.