MEJOS, ELAINE MAE M.

14-0182C
BS Accountancy Auditing in CIS Environment

I. CODE OF ETHICS
- states the principles and expectations governing the behavior of
individuals and organizations in the conduct of their professions and
operations. It describes the minimum requirements for conduct, and
behavioral expectations rather than specific activities.
- Each professionals is required to comply with the code of conduct set
forth in the IRR respective of their professions. For Professional
Accoutants, the following are required to be complied with:
A. Integrity
o A professional accountant should be straightforward and honest
in all professional and business relationships.

B. Objectivity
o A professional accountant should not allow bias, conflict of
interest or undue influence of others to override professional
or business judgments.

C. Professional Competence and Due Care

o A professional accountant has a continuing duty to maintain
professional knowledge and skill at the level required to ensure
that a client or employer receives competent professional
service based on current developments in practice, legislation
and techniques. A professional accountant should act diligently
and in accordance with applicable technical and professional
standards when providing professional services.

D. Confidentiality
o A professional accountant should respect the confidentiality of
information acquired as a result of professional and business
relationships and should not disclose any such information to
third parties without proper and specific authority unless there
is a legal or professional right or duty to disclose.
Confidential information acquired as a result of professional
and business relationships should not be used for the personal
advantage of the professional accountant or third parties.

E. Professional Behavior
o A professional accountant should comply with relevant laws and
regulations and should avoid any action that discredits the
profession.

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MEJOS, ELAINE MAE M. 14-0182C
BS Accountancy Auditing in CIS Environment

II. WHY DO ORGANIZATIONS DEVELOP ETHICAL CODES?

Code of Ethics has value as both an internal guideline and an external
statement of corporate values and commitments.

A well-written code of conduct clarifies an organization's mission,

values and principles, linking them with standards of professional
conduct. The code articulates the values the organization wishes to
foster in leaders and employees and, in doing so, defines desired
behavior. As a result, written codes of conduct or ethics can become
benchmarks against which individual and organizational performance can be
measured.

It is also a central guide and reference for employees to support day-to-

day decision making. A code encourages discussions of ethics and
compliance, empowering employees to handle ethical dilemmas they
encounter in everyday work. It can also serve as a valuable reference,
helping employees locate relevant documents, services and other resources
related to ethics within the organization.

Externally, it serves several important purposes:

1. Compliance: Legislation (i.e., the Sarbanes-Oxley Act of 2002)

requires individuals serving on boards and organizational leaders of
public companies to implement codes or clearly explain why they have
not.

2. Marketing: A code serves as a public statement of what the company

stands for and its commitment to high standards and right conduct.

3.
4. Risk Mitigation: Organizations with codes of ethics, and who follow
other defined steps in the U.S. Sentencing Commission's Federal
Sentencing Guidelines, can reduce the financial risks associated with
government fines for ethical misconduct by demonstrating they have
made a "good faith effort" to prevent illegal acts.

III. REFERENCES
A. Code of Ethics https://www.investopedia.com/terms/c/code-of-
ethics.asp#ixzz55ptJK4UC
B. http://www.ethics.org/resources/free-toolkit/code-of-conduct
C. https://www.investopedia.com/terms/c/code-of-ethics.asp
D. CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS, June 2005, Rev. July 2006

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