Part AFramework

Section 110Integrity. Professional accountants should be straightforward and honest in

all professional and business relationships. Integrity implies fair dealing and truthfulness.
The accountant should not be associated with reports or other communications where the
accountant believes the information contains a materially false or misleading statement,
contains statements or information furnished recklessly, or omits or obscures information
required to be included where such omission or obscurity would be misleading.
Section 120Objectivity. Professional accountants should not compromise their
professional or business judgment.
Section 130Professional Competence and Due Care. Professional accountants should
maintain professional knowledge and skill at the level required to ensure that clients or
employers receive competent professional service, and to act diligently in accordance with
applicable technical and professional standards.
Section 140Confidentiality. Professional accountants should refrain from disclosing
confidential information unless there is a legal or professional obligation to do so, and using
confidential information for personal advantage.
Section 150Professional Behavior. Professional accountants should comply with laws
and regulations and avoid
Actions that would discredit the profession. In marketing services the professional
accountant shall be honest and truthful.
Part BAccountants in Public Practice
Section 200Professional Accountants in Public Practice. This section of the code
begins with a framework that presents threats to ethical behavior and safeguards to help
mitigate these threats.
Section 210Professional Appointment. Before accepting a new client, a professional
accountant should determine whether acceptance would create any threats to compliance
with fundamental principles.
Section 220Conflicts of Interest. A professional accountant should take reasonable
steps to identify circumstances that could pose a conflict of interest.
Section 230Second Opinions. When asked to provide a second opinion on applicable
accounting, auditing, reporting or other standards to specific circumstances or transactions,
a professional accountant should evaluate the significance of threats and apply necessary
safeguards.
Section 240Fees and Other Types of Remuneration. Commissions, referral fees, fees
that are not adequate, and
Contingent fees may create threats to compliance with professional standards. Therefore,
the professional accountant should make sure that necessary safeguards are in effect
around fee determination.
Section 250Marketing Professional Services. Solicitation of new work through
advertising or other forms of marketing may create a threat to compliance with fundamental
principles. The accountant in public practice should not bring the profession in disrepute
when marketing professional services. Assertions in marketing should be honest and
truthful.
Section 260Gifts and Hospitality. Gifts and hospitality from a client may create a
threat to independence. The accountant must evaluate the significance of the threat and
apply necessary safeguards.
Section 270Custody of Client Assets. A professional accountant in public practice shall
not assume custody of client monies or other assets unless permitted by law.
Section 280ObjectivityAll Services. A professional accountant shall determine when
providing professional services whether there are threats to objectivity. If so, the accountant
should apply necessary safeguards.
Section 290IndependenceAudit and Review Engagements. The international
ethics rules regarding independence in audit and review engagements are similar to the
AICPA rules. Both require the concepts of independence in mind and in appearance.

However, the international ethics rules have fewer definitive prohibitions. Like the AICPA
Code, when there is no definitive prohibition, the following approach is used:
1. Identify threats to independence;
2. Evaluate the significance of the threats identified; and
3. Apply safeguards, when necessary, to eliminate the threats or reduce them to an
acceptable level. If safeguards do not reduce the risk to an acceptable level, the firm should
not accept or continue the engagement, or assign the particular individual to the
engagement team. The firm should document these considerations and the conclusion.
Threats to independence arise from self-interest, self-review, advocacy, familiarity, or
intimidation.
a. Like the AICPA Code of Professional Conduct, the international ethics rules indicate these
types of threats can arise from
Financial interests in the client;
Having certain business relationships with the client;
Serving as a director, officer, or employee of the client; and
Performing certain non-assurance services to the client.
b. Safeguards are of two categories: (1) those created by the profession, legislation,
regulation, and
(2) those implemented by the firm in the work environment. For example, legislation may
prohibit the performance of certain nonassurance services for audit clients. The audit firm
may decide not to assign a particular individual to an audit engagement to mitigate a threat
to independence.
Section 291Independence for Other Assurance Services. These requirements are
similar to those established by the AICPA in the US. They relate to maintaining independence
from the parties making the assertion on which the accountant is providing assurance.
Part CProfessional Accountants in Business
The rules that apply to professional accountants in business related to the following areas;
Potential conflicts
Preparation and reporting on information
Acting with sufficient expertise
Financial interests
Inducements