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Professional Ethics Module

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Reading: What is Ethics?

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Professional Ethics

Definition of Ethics

Ethics helps professional accountants decide what is right, fair, and responsible, especially when laws or rules alone do not provide a complete answer.

What is ethics?

Ethics refers to the principles and values that guide behaviour and help individuals determine what is right or wrong.

Ethics influences decisions in situations where laws, rules, or written procedures are insufficient. In accounting, ethics helps professionals apply judgement, act in the public interest, and protect trust in financial information.

Examples of ethical behaviour

Honesty Reporting financial information truthfully and without misleading users.
Avoiding conflicts of interest Not allowing personal interests to influence professional judgement.
Confidentiality Protecting financial and business information obtained through professional work.
Fairness Acting fairly toward stakeholders, including clients, employers, investors, creditors, regulators, and the public.

Law vs Ethics

Law and ethics are related, but they are not the same. Something may be legal but still unethical. Professional accountants are expected to comply with the law and also uphold ethical principles.

Law Ethics
Rules established by governments. Moral principles guiding behaviour.
Mandatory and enforceable by legal authorities. Voluntary in nature, but expected from professionals.
Violation may lead to legal penalties, fines, or imprisonment. Violation may lead to professional consequences, loss of trust, disciplinary action, or reputational damage.
Key message: Professional accountants should not ask only, “Is it legal?” They should also ask, “Is it ethical, fair, transparent, and in the public interest?”



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