PREFACE PART A: GENERAL APPLICATION OF THE CODE 100 110 120 130 140 150 Introduction and Fundamental Principles Integrity Objectivity Professional Competence and Due Care Confidentiality Professional Behavior
PART B: PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE 200 210 220 230 240 250 260 270 280 290 Introduction Professional Appointment Conflicts of Interest Second Opinions Fees and Other Types of Remuneration Marketing Professional Services Gifts and Hospitality Custody of Client Assets Objectivity–All Services Independence– Assurance Engagements
PART C: PROFESSIONAL ACCOUNTANTS IN BUSINESS 300 310 320 330 340 350 Introduction Potential Conflicts Preparation and Reporting of Information Acting with Sufficient Expertise Financial Interests Inducements
DEFINITIONS EFFECTIVE DATE
Code of Ethics for Professional Accountants in the Philippines PREFACE TO THE CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS IN THE PHILIPPINES
This preface and the accompanying Code of Ethics for Professional Accountants in the Philippines have been approved by the Board of Directors of the duly accredited professional organization, the Philippine Institute of Certified Public Accountants (PICPA) recommended for adoption by the Board of Accountancy (BOA) and approval of the Professional Regulation Commission (PRC) as part of the rules and regulations of the BOA for the practice of the accountancy profession. 1. PICPA as a member of the International Federation of Accountants (IFAC) is committed to the IFAC’s broad objective of developing and enhancing a coordinated worldwide accountancy profession with harmonized standards. In working toward this objective, IFAC develops guidance on ethics for professional accountants. As a condition of its membership, PICPA is obliged to support the work of IFAC by informing its members of every pronouncement developed by IFAC, and to work towards implementation, when and to the extent possible, under local circumstances, of all these pronouncements. The accompanying Code of Ethics for Professional Accountants in the Philippines is based on the revised Code of Ethics for Professional Accountants developed by IFAC (2006 revision). Professional accountants refer to persons who are registered in the PRC as Certified Public Accountants (CPAs) and who hold a valid certificate issued by the BOA, whether they be in public practice (including partnership or sole proprietorship), commerce and industry, the government or education. In the few instances where the domestic laws are in conflict with the IFAC Code, the local law shall prevail (e.g. the prohibition on the practice of accountancy through corporate form). The revised Code also conforms to the newly issued Philippine Standards on Auditing, notably the Philippine Framework for Assurance Engagements, issued by the Auditing and Assurance Standards Council, and definitions contained in the Philippine Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance Related Services Engagements. This Code of Ethics is mandatory for all CPAs and is applicable to professional services performed in the Philippines on or after June 30, 2008 except for provisions in paragraphs 290.14 to 290.26 which will be effective for reports dated on or after December 31, 2009. An explanatory foreword will be issued on the status of each additional IFAC pronouncement on Ethics. The explanatory foreword will indicate which additional pronouncement on Ethics is adopted in the Philippines and if not adopted, the reason therefore shall be stated. All CPAs are expected to comply with the ethical requirements of this Code and other ethical requirements that may be adopted and approved by IFAC. Apparent failure to do so may result in an investigation into the CPA’s conduct. It is impractical to establish ethical...