Summary
The Philippines has adopted the 2020 Edition of the code of ethics for professional accountants, with a pending adoption of the 2023 Edition. This code emphasizes Independence standards, detailing requirements to support Independence in review and assurance engagements. It outlines five fundamental ethical principles - integrity, objectivity, professional competence, confidentiality, and professional behavior - crucial for maintaining ethical standards in accounting. The code also addresses five threats to these principles, including self-review, self-interest, bias, and intimidation, emphasizing the importance of safeguards to preserve objectivity and integrity in professional accounting practices.
Introduction to Code of Ethics
The Philippines adopts the handbook or code of ethics for professional accountants from the 2020 Edition approved by the accountancy board. A 2023 Edition is pending adoption. The code of ethics includes principles, threats, and sections for compliance, conceptual framework, and specific guidelines for accountants in public practice and business.
Importance of Independence Standards
The 2020 Edition of the code of ethics emphasizes Independence standards, particularly in review and assurance engagements. The edition provides detailed requirements to support Independence in these engagements, making the code comprehensive and lengthy.
Fundamental Ethical Principles
The code of ethics outlines five fundamental ethical principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. These principles are crucial for maintaining ethical standards in professional accounting practices.
Threats to Ethical Principles
The code discusses five threats to the fundamental ethical principles, including self-review, familiarity, self-interest, bias, and intimidation. These threats can compromise the objectivity and integrity of professional accountants, necessitating safeguards to mitigate risks.
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