Acca Ethics and Professionalism.
Acca Ethics and Professionalism.
Acca Ethics and Professionalism.
Once behaviour complies fully with the law and is consistent with fundamental principles of
professional behaviour, further choices are still available, but the scope becomes much narrower.
For example there may be a choice to do something in one way or another, such as how to
communicate with someone, or whether to act immediately or delay a decision. The choices that
you make at this level of the filter require you to consider your personal values and use your own
individual judgement.
The figure opposite can also be presented as a simple flow chart to guide your decision-making.
The decision flowchart below is a systematic way of thinking about how you act and behave at
work and the sequence in which you, as a professional, should normally filter your decisions.
Figure 2: Flowchart of the professional and ethical decision-making process
There are many different definitions of a ‘professional’. Relevant factors include academic
qualifications, specialist knowledge, heightened ethical standards, and others. However, a
professional is someone who has knowledge and expertise which are recognised and valued by
society. Doctors, lawyers and accountants are commonly thought of as professionals.
They have trained in their fields to develop the highest levels of specialist skills and knowledge.
They are trusted and respected by the public and their peers. Professionals are expected to
behave at work in accordance with minimum standards, often set out in professional and ethical
codes of conduct.
A professional has a duty to their employer, clients, colleagues and themselves, but should
always put the public interest above all, in guiding their behaviour and decision-making at work.
Professionals are required to know what they can and cannot do, they must decide on the right
course of action and they must carry out their work to the best of their ability.
‘It’s not the job you do – it’s how you do the job’
Professionalism concerns how you conduct yourself, behave, are perceived by others, and
whether you are technically competent at work.
The key attribute of a professional is to exhibit a sense of trustworthiness. This provides the
client or employer and the public with the assurance that the professional will always perform to
a consistently high standard, and do what is expected of them.
2.2 Characteristics of a Profession
Theoretical knowledge: Professionals are assumed to have extensive theoretical knowledge and
skills, and the ability to apply these in practice.
Professional association: Professional bodies are intended to enhance the status of their
members. They have carefully controlled entrance requirements, including work-based practical
experience, and being able to demonstrate ‘good character’.
Work autonomy: Professionals should retain control of their performance at work through the
skills they possess, which may be unique within the organisation.
Code of professional conduct or ethics: Professional bodies usually have codes of conduct or
ethics for their members, and disciplinary procedures for those who infringe the ethical code.
High status and rewards: Successful professions achieve high status, public prestige and
rewards for their members.
Mobility: The skills, knowledge and authority of a professional belong to the professional, and
not the organisation for which they work. Professionals are therefore occupationally mobile.
As a trainee working within a profession, you will not be able to display all of the badges of a
professional. However, in order to be accepted into a professional body, you will need to be able
to demonstrate professionalism, as well as gain theoretical knowledge and practical experience.
The chief magistrate of Milan required full accounts of goods carried on ships. Early Italian
republics passed laws requiring that public scribes kept track of merchandise and its value.
1206 - 1227 Genghis Khan the founder and emperor, ruled the Mongolian empire.
1254 Marco Polo (trader and explorer) was born in this year. The most famous westerner
to travel the silk road. His journey through Asia lasted 24 years.
1494
Italian monk Luca de Pacioli officially introduced 'double entry' bookkeeping in his 'Summa de
Arithmetica' which was a compendium of mathematical knowledge.
1581
The Collegio dei Raxonati became the world's first society of accountants. By 1669, no one was
permitted to practice accounting in Venice without being a member of the college.
After circumnavigating the known world, Sir Francis Drake is knighted by Elizabeth I.
1600
The East India Company was founded. The trading company introduced invested capital and
dividend distributions, creating a great need for accountability to investors and the need for
formal book-keeping and accounts.
1850
There were 264 'accountants' listed in London's directory of professionals. In 1799, there were
only 11; in 1840, there were 107.
The first U.S. clipper ship to be seen at London arrives from Hong Kong after a 97-day voyage.
1854
Scotland formally recognised the profession under the designation of 'chartered accountant'. The
original Institute of Chartered Accountants of Scotland was formed.
Florence Nightingale, who established Nursing as a respectable career for women, leaves for the
Crimean war with 38 other female nurses.
Ferdinand de Lesseps obtained a concession from Sa'id Pasha, the viceroy of Egypt, to create a
company to construct a canal open to ships of all nations. The Suez Canal opened in 1867.
1880
England formally recognised the 'chartered accountant', when the Institute of Chartered
Accountants in England and Wales was incorporated by Royal Charter in May 1880, following
the coming together of six local societies of accountants in London, Liverpool, Manchester and
Sheffield.
1887
The New York State Society of Certified Public Accountants (CPA) was formed on 28 January.
The colours of African unity – red, green, yellow – are seen on one of the oldest African flags.
These colours were used for the national flag of Ethiopia in 1897.
Englishman J. J. Thomson discovers the electron as a subatomic particle, over 1,800 times
smaller than a proton (in the nucleus).
1904
The Association of Certified Chartered Accountants (ACCA) was formed, which was originally
known as the London Association of Accountants, and which has become one of the largest and
fastest growing international professional accountancy bodies.
American Henry Ford sets a new automobile land speed record of 91.37 mph.
The third Modern Olympic Games opens in St. Louis, Missouri, United States.
The first underground line of the New York City Subway opens.
1928
The Institute of Chartered Accountants in
Australia (ICAA) was constituted by Royal Charter in 1928. The ICAA now operates under a
Supplemental Royal Charter (amended from time to time) granted by the Governor-General on
behalf of the UK Head of State on 23 August 2000.
The first ever east-west transatlantic flight takes place from Dublin, Ireland to Greenly, Canada.
The animated short 'Plane Crazy' is released by Disney Studios in Los Angeles, USA featuring
the first appearances of the characters Mickey and Minnie Mouse.
1952
In 1952 the Commonwealth Institute of Accountants (formerly known as the Incorporated
Institute of Accountants, Victoria) and the Federal Institute of Accountants, incorporated in
Victoria, decided to merge and form the Australian Society of Accountants.
The Australian Society of Accountants changed its name to the Australian Society of Certified
Practising Accountants in 1990 and then several years later changed its name, again, to CPA
Australia.
The first passenger jet flight route between London and Johannesburg.
1973
The International Accounting Standards Committee ('IASC') was formed at its inaugural meeting
in London on 29 June, as a result of an agreement by accountancy bodies in Australia, Canada,
France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland and the
United States.
These countries constituted the Board of the IASC at that time. Subsequently (in 2001), the
International Accounting Standards Board (IASB) assumed accounting standard-setting
responsibilities from the IASC. The IASB now publishes its standards in a series of
pronouncements called International Financial Reporting Standards (IFRS).
The first handheld commercial cellular phone call is made by Martin Cooper in New York City.
Concorde cuts flying time across the Atlantic in half flying at an average speed of 954 mph.
Sydney Opera House is opened.
1973
Public awareness of generally accepted accounting standards led to the formation of the
independent US Financial Accounting Standards Board (FASB).
The two German Republics, the Federal Republic of Germany (West Germany) and the German
Democratic Republic (East Germany), are admitted to the United Nations.
1974
In the UK, the Consultative Committee of Accountancy bodies (CCAB) was formed with six
founding members:
Richard Nixon becomes the first US president forced to resign after the Watergate Scandal.
Worldwide inflation helps to cause dramatic increases in the cost of fuel, food and
manufacturing.
End of Oil embargo crisis: Most OPEC nations end a five-month oil embargo against the United
States, Europe and Japan.
1977
IFAC's mission is to serve the public interest, by strengthening the worldwide accountancy
profession and contributing to the development of strong international economies by establishing
and promoting adherence to high-quality professional standards, furthering the international
convergence of such standards and speaking out on public interest issues where the profession's
expertise is most relevant.
'Star Wars: Episode IV A New Hope' opens in cinemas and subsequently becomes the then-
highest grossing film of all time.
1980
The Association of
Accounting Technicians, a qualification for technical and clerical accountants, was formed.
John Lennon, an English musician and peace activist, is assassinated by Mark David Chapman in
New York City.
The St. Gotthard Tunnel opens in Switzerland as the world's longest highway tunnel at 10.14
miles (16.32 km), stretching from Goschenen to Airolo.
1982
1988
The Hong Kong Institute of Accredited Accounting Technicians (HKIAAT) was formed.
Benazir Bhutto is sworn in as Prime Minister of Pakistan, becoming the first woman to head the
government of an Islam-dominated state.
1997
2011
Professionalism
You can view some of the main historical developments in accountancy by clicking on the dates
below. Drag the yellow strip to scroll along the dates.
The following landmarks are not exhaustive, and many other professional accountancy bodies
have been formed throughout the world, to educate and train accountants in their regions. Whilst
they represent and support their members, some also take responsibility for regulating their
members, whether subject to independent oversight (as in the UK) or not. These bodies are
continuously developing and increasing their membership and creating alliances and strategic
collaborative initiatives with other organisations to promote the interests of their members, or to
enhance the regulatory structures in their regions.
START
1225
The chief magistrate of Milan required full accounts of goods carried on ships. Early Italian
republics passed laws requiring that public scribes kept track of merchandise and its value.
1206 - 1227 Genghis Khan the founder and emperor, ruled the Mongolian empire.
1254 Marco Polo (trader and explorer) was born in this year. The most famous westerner
to travel the silk road. His journey through Asia lasted 24 years.
1494
Italian monk Luca de Pacioli officially introduced 'double entry' bookkeeping in his 'Summa de
Arithmetica' which was a compendium of mathematical knowledge.
1581
The Collegio dei Raxonati became the world's first society of accountants. By 1669, no one was
permitted to practice accounting in Venice without being a member of the college.
After circumnavigating the known world, Sir Francis Drake is knighted by Elizabeth I.
1600 The East India Company was founded. The trading company introduced invested capital
and dividend distributions, creating a great need for accountability to investors and the need for
formal book-keeping and accounts.
Sumo Wrestling becomes a professional sport in Japan.
1850
There were 264 'accountants' listed in London's directory of professionals. In 1799, there were
only 11; in 1840, there were 107.
The first U.S. clipper ship to be seen at London arrives from Hong Kong after a 97-day voyage.
1854
Scotland formally recognised the profession under the designation of 'chartered accountant'. The
original Institute of Chartered Accountants of Scotland was formed.
Florence Nightingale, who established Nursing as a respectable career for women, leaves for the
Crimean war with 38 other female nurses.
Ferdinand de Lesseps obtained a concession from Sa'id Pasha, the viceroy of Egypt, to create a
company to construct a canal open to ships of all nations. The Suez Canal opened in 1867.
1880
England formally recognised the 'chartered accountant', when the Institute of Chartered
Accountants in England and Wales was incorporated by Royal Charter in May 1880, following
the coming together of six local societies of accountants in London, Liverpool, Manchester and
Sheffield.
1887
1897
The New York State Society of Certified Public Accountants (CPA) was formed on 28 January.
The colours of African unity – red, green, yellow – are seen on one of the oldest African flags.
These colours were used for the national flag of Ethiopia in 1897.
Englishman J. J. Thomson discovers the electron as a subatomic particle, over 1,800 times
smaller than a proton (in the nucleus).
1904
The Association of Certified Chartered Accountants (ACCA) was formed, which was originally
known as the London Association of Accountants, and which has become one of the largest and
fastest growing international professional accountancy bodies.
American Henry Ford sets a new automobile land speed record of 91.37 mph.
The third Modern Olympic Games opens in St. Louis, Missouri, United States.
The first underground line of the New York City Subway opens.
1928
The Institute of Chartered Accountants in Australia (ICAA) was constituted by Royal Charter in
1928. The ICAA now operates under a Supplemental Royal Charter (amended from time to time)
granted by the Governor-General on behalf of the UK Head of State on 23 August 2000.
The first ever east-west transatlantic flight takes place from Dublin, Ireland to Greenly, Canada.
The animated short 'Plane Crazy' is released by Disney Studios in Los Angeles, USA featuring
the first appearances of the characters Mickey and Minnie Mouse.
.
1952
The Australian Society of Accountants changed its name to the Australian Society of Certified
Practising Accountants in 1990 and then several years later changed its name, again, to CPA
Australia.
The first passenger jet flight route between London and Johannesburg.
1973
The International Accounting Standards Committee ('IASC') was formed at its inaugural meeting
in London on 29 June, as a result of an agreement by accountancy bodies in Australia, Canada,
France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland and the
United States.
These countries constituted the Board of the IASC at that time. Subsequently (in 2001), the
International Accounting Standards Board (IASB) assumed accounting standard-setting
responsibilities from the IASC. The IASB now publishes its standards in a series of
pronouncements called International Financial Reporting Standards (IFRS).
The first handheld commercial cellular phone call is made by Martin Cooper in New York City.
Concorde cuts flying time across the Atlantic in half flying at an average speed of 954 mph.
1973
Public awareness of generally accepted accounting standards led to the formation of the
independent US Financial Accounting Standards Board (FASB).
The two German Republics, the Federal Republic of Germany (West Germany) and the German
Democratic Republic (East Germany), are admitted to the United Nations.
1974
In the UK, the Consultative Committee of Accountancy bodies (CCAB) was formed with six
founding members:
Richard Nixon becomes the first US president forced to resign after the Watergate Scandal.
Worldwide inflation helps to cause dramatic increases in the cost of fuel, food and
manufacturing.
End of Oil embargo crisis: Most OPEC nations end a five-month oil embargo against the United
States, Europe and Japan.
1977
IFAC's mission is to serve the public interest, by strengthening the worldwide accountancy
profession and contributing to the development of strong international economies by establishing
and promoting adherence to high-quality professional standards, furthering the international
convergence of such standards and speaking out on public interest issues where the profession's
expertise is most relevant.
'Star Wars: Episode IV A New Hope' opens in cinemas and subsequently becomes the then-
highest grossing film of all time.
1980
The St. Gotthard Tunnel opens in Switzerland as the world's longest highway tunnel at 10.14
miles (16.32 km), stretching from Goschenen to Airolo.
1982
Michael Jackson releases 'Thriller', the biggest selling album of all time.
1988
The Hong Kong Institute of Accredited Accounting Technicians (HKIAAT) was formed.
Benazir Bhutto is sworn in as Prime Minister of Pakistan, becoming the first woman to head the
government of an Islam-dominated state.
1997
2011
Globally the accountancy profession continues to flourish with more people training to become
accountants.
The development and growth in popularity of accounting as a profession continues today, despite
its reputation being damaged by the corporate scandals of the early part of the 21st century. With
the demise of companies like Enron, Worldcom, Parmalat and more recently Lehman Brothers,
the role of accountants in providing a 'true and fair' view of the performance and position of
these companies has often been brought into question.
The profession has had to become even more vigilant and responsible for the behaviour and
reputation of its members. Through its education and training programmes, it has had to ensure
that professional accountants develop a greater ethical and responsible attitude to their work.
ACCA and other professional bodies recognise their members' duty to act in the public interest,
as well as the interests of identified stakeholders.
Accountants, like other professionals, must 'act in the public interest'. 'Acting in the Public
interest’ is a difficult phrase to define exactly.
The public is everyone who is affected or could potentially be affected by the work or
shortcomings of accountants and auditors, including third party institutions.
The interest is the potential impact of accountants’ work on the public, whether that be
beneficial or harmful.
In order to achieve a high level of confidence, the public perception should be that accountants /
auditors are: