Ethics In Accounting Assessment Answer

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With the ramified economic changes, organization needs to keep its financial records and reporting framework complying with the ethical principles as suggested in APES 110. This ethical principles s issued with the compliance of the APES 110 code of ethics for the Accounting professionals. The code will become effective from 1st January 2020 and it will supersede APES 110 which was issued in December 2010 which was further amended from time to time. The code can be adopted earlier from the effective date specified. (Jotham Lian, 2018)

The ethical principle code has been divided into the following three main parts. 

  • PART A is applicable and comply on the all the members which contain general application of the code
  • PART B is applicable and comply on the all the members  who are indulged in public practice
  • PART C is applicable and comply on the all the members who are in business although the members who are indulged in public practice program. 


The part A of the APES 110 contains general applications of the code which specifies fundamental principles for the governance of the ethical code of conduct. (Institute of public accountants) The members should not only abide by the words, but should abide by the spirit of code. However, all the members needs to be abide by or comply these ethical principles in their work professional program.

Integrity: As per this code of ethics set under the principle for the professional work program there should maintain integrity i.e. he should be straightforward and honest in all his dealings with professionals and other business concerns or while maintain professional and business relationships. He should be truthful and fair in all his dealings. However, it is concerned that the members would not be indulged in associated with the set, reports, communication or other information where he believes the information to have contained false or misleading information, information furnished is reckless, and information omits such facts which makes such information misleading. Whenever a member becomes aware of getting the required information, then he should take reasonable steps to get disassociated from the same.

  1. Objectivity: it is analysed that the professional should not be biasness, or should not indulged in conflict of interest and undue influence of others while making any business or professional judgements. A member may get revealed to the situation where his objectivity may get impaired. He shall not perform such professional services where situations or circumstances may have undue influence or biasness while giving professional services. 

  1. Professional conduct and due core: A professional should maintain the knowledge program and skills to set up clients and keeping employees to get the professional service program which is based upon the current development which are prevailing in the legalisation, practices and other techniques, the professional should diligently act with the set program accorded to the professional standards and ethical set practice. Diligence includes all the responsibilities to act, in context with the needs of the assignment and should act on timely basis. However, there is need to set up proper training program and aligning the work practice with the set code practice to keep the more professional work. 
  2. Confidentiality: A professional should not disclose the information which is acquired due to the business and professional relationship without the authority obtained by such party unless; there arise a professional or legal obligation to disclose the information. A professional should maintain the confidentiality of information and should not be using any information for his or her personal use. 
  3. Professional behaviour:  A professional should adhere to the compliance of relevant regulations and rules will not be undertaken which dishonour the undertaken profession. (APESB, 2018) (cpaaustralia)


The AEPS describes the framework, a member must follow in order to identify, assess, evaluate and comply with the fundamental principles. (charteredaccountantsanz). This code was based on the fundamental principles and set principle of code practice, which will be accompanied with the conceptual framework. However, the conceptual framework requires the professional to use their judgments while:

  • This identify the threats to the compliance program. 
  • Assessing the threats identified in process. 
  • Implement the internal control system to eliminate these threats. 

Threats may arise due to broad range of relationships. Various types of threats that can be encountered by the individual are:

  1. Self- interest threats: this threat takes into account that all the undertaken financial interest may have an influence on the behaviour or the judgement of the member.
  2. Self-review threat: this threat encompasses that a member will not properly evaluate the judgement or the services given by the individual within the member’s firm, members of same profession or organisation on which he relies. 
  3. The undertaken advocacy threat: This threat is focused on the professional who will motivate employees’ or client’s position to the compromised objectivity. 
  4. Familiarity threat: This arise due to the related party transaction case and will not be allowed. 
  5. Intimidation threat: This threat arises when an undue influence is exercise over the professional deterring him to act objectively.

The safe guard may be defines as the measure which is used to eliminate the threats or to reduce the threat to an acceptable level. As mentioned in AEPS the safeguard can fall into two categories:

  1.  Safeguard which is created by the legislation, regulation or profession.
  2. Safeguard in the work environment.

The safeguard created by the profession, legislation comprises of such as Professional development security program, education and training program, complying the corporate governance program, setting alignment with the professional code of practice in work set up and setting up the internal control system process (intheblack, 2019)


The APES 110 contains the fundamental principles governing the members and the conceptual framework of the standard. The fundamental principles are encountered to various threats that could be eliminated to acceptable level with the help of safeguards.