When it comes to a professional industry such as accounting, ethics and ethical behaviour are very important principles and should be adhered to at all levels within the accounting industry, from the simplest transaction allocation to the most in-depth review or audit.
Whether an Accountant is registered with CIBA, SAIPA or SAICA, all of these governing bodies have clearly defined ethical standards which their members need to adhere to. These ethical standards not only ensure that registered Accountants act as good corporate citizens but contribute to the accuracy, transparency and completeness of the work they perform.
The ethical principles that registered Accountants adhere to are furthermore promoted by the individual regulatory bodies overseeing different components of the accounting profession.
IFRS and GAAP set out clear acceptable practices for accounting, SARS regulates taxation with laws, regulations and general rulings. The Companies Act regulates the governance of companies and reports, such as the King IV Report adds additional structure to the promotion and advancement of standards of good corporate governance.
Although the ethical standards are clearly defined, you do find some accountants that bend them to the unethical advantage of a certain party or plainly not adhere to them at all. Behaviour such as this poses great risks for clients as operational and financial decisions might then be made based upon incomplete or inaccurate information, that could lead to great financial losses or even the forced liquidation of a business.
And to make matters even more complicated, there exists a misleading relationship between ethical and legal, where not all legal actions are considered ethical. It thus takes more than just an understanding of a book full of ethical standards to be an ethical Accountant – it requires a sense of responsibility and accountability.
At Business Services, we not only strive to comply with the ethical principles as set out by the governing bodies regulating our industry, but promote the implementation of the triple bottom line approach which includes considering the financial as well as social and environmental impact of the decisions that we make.