ETHICS IN ACCOUNTING
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.
A.CODE OF ETHICS PRINCIPLES SPECIFIED IN APES 110
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.
B.CONCEPTUAL FRAMEWORK AND THE KEY ASPECTS OF APES 110
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:
Threats may arise due to broad range of relationships. Various types of threats that can be encountered by the individual are:
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:
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.