Professional Ethics in the Accounting Professon

Professional Ethics

Introduction
An effective code of ethics succeeds in influencing people to behave ethically. In contrast, an ineffective code of ethics serves little purpose and merely provides an illusion that the employees or profession would actually abide by the code. This paper will first discuss an appropriate conceptual framework that guides the design of auditors’ codes of ethics. An assessment of the merits and flaws of the accounting profession’s Code of Professional Conduct and Ethics will then be made. Recommendations will also be proposed to address the highlighted weaknesses. Lastly, prior researches are reviewed to determine the factors that influence such codes in general.
1. Conceptual Framework
Profession bodies should integrate both principles and specific rules, ensure that specific rules are relevant in light of new developments in the profession and that compliance does not impose excessive cost on the auditors.
1.1. Comprise Both Principles...