Standards Board for Accountants Code of Ethics †Free Samples

Question: Discuss about the Standards Board for Accountants Code of Ethics. Answer: Definition with explanation and examples As per the International Ethics Standards Board for Accountants Code of Ethics, there are 5 fundamental principles of professional ethics which needs to be followed by the professional accountants, which have been mentioned as below: Integrity: Integrity refers to being straightforward and honest in all the dealings with respect to the business. The information provided should not be misleading such that the business decisions are wrongly taken. Example: Data on employees salary to management for discussion on hike. Objectivity: This infers that the business decisions should not be baised or it should not entertain any conflict of interest. It should not override any business judgements in the long run. Example: The management should take decision for the whole group of shareholders rather than only a particular section of shareholders Confidentiality: This is one of the most important principles and that the confidentiality of the data should not be leaked at any cost. The clients information should not be disclosed to any one or it can be done only at the permission of the client(Dichev, 2017). Examples: The internal policies of one company should not be disclosed to any other company. Professional competence and due care: The professional should provide the best advice and guidance which are as per the currentaccounting law and he should act deligently in accordance with the technical and professional standards. Example: Correct laws should be used for reporting of any company. Professional behaviour: The given professional should act in a legitimate manner and should not indulge in any of the acts which leads to bad name for the profession as a whole(Alexander, 2016). Example: The professional should not override any discrepancy on records due to friendly behaviour by client. Exaplanation to journal entries Below are the explanation given to the journal entries using the concept of reverse engineering: March 1: The company would have received the rent revenue from the client in cash worth 500, therefore, cash has been debited and rent revenue has been credited. March 2: Here, the company would have purchased the stationary worth 700 and would have paid in cash therefore, stationary expenses have been debited and cash has been credited. March 3: Here, the company would have purchased the furniture on credit worth 2000, therefore the furniture being asset has been debited and accounts payable being creditors has been credited. References Alexander, F., 2016. The Changing Face of Accountability. The Journal of Higher Education, 71(4), pp. 411-431. Dichev, I., 2017. On the conceptual foundations of financial reporting.Accounting and Business Research, 47(6), pp. 617-632.