Professional
Ethics,
Independence
and Quality
Control
Integrity Objectivity
Professional
Competence
& Due Care
Professional
Confidentiality Behaviour
Professional
accountants in
public practice
Safeguards in the work
environment
Professional
accountants in
Prohibitions: business
When safeguards are
not adequate
© The McGraw-Hill Companies 2010
Safeguards created by the profession,
legislation or regulation
• Educational, training and experience.
requirements for entry into the profession.
• Continuing professional development
requirements.
• Corporate governance regulations.
• Professional standards.
• Professional or regulatory monitoring and
disciplinary procedures.
• External review by a legally empowered third
party of the reports, returns, communications
or information produced by a professional
accountant.
© The McGraw-Hill Companies 2010
IFAC Code Part B: Professional Accountants
in Public Practice
Marketing
Professional Custody of Client’s
Services Assets
Objectivity – All
Services Independence – Other
Assurance Engagements
For public interest entity audit clients the firm shall not provide
internal audit services that relate to a significant part of the internal
controls over financial reporting; financial accounting systems that
generate information that is, separately or in the aggregate,
significant to the client’s accounting records or financial
statements; or amounts or disclosures that are, separately or in
the aggregate, material to the financial statements.
For public interest entity audit clients the firm shall not
provide services involving the design or implementation of
IT systems that form a significant part of the internal control
over financial reporting or generate information that is
significant to the client’s accounting records or financial
statements.
Professional accountants in
business must comply with the
IFAC Code’s fundamental
principles and apply the
conceptual framework when
threats to the principles exist.
EU 8th Directive.
IFAC SMO 1 European Commission,
Quality Assurance Recommendation on
Quality Assurance for
the Statutory Audit in
the EU: Minimum
Requirements