The study of ethics is very necessary as its guides the professional accountant to choose or make a decision on what is wrong and right. Choosing a wrong decision can result in a negative consequences such as loss of reputation, imprisonment fine e.t.c
There are two ways to solve ethical problems: these are Ruled-based and the Principle-based
However,ACCA recommend its members to adopt the principle based based approach in solving a business problem. The following are the five principles which ACCA requires its members to adopt Firstly, Integrity, this requires members to tell the truth or not to present a misleading information to users Secondly, Objectivity, professional estimates and judgement should be based on facts and on what represent the best interest of stakeholders and wider community and not to in the interest of the professional for personal gain, or in the interest of a person or group who can influence the professional accountant. Thirdly, Professional competency and due care, this requires members not to perform work unless they are competent to do the work. Competency is about keeping up to date knowledge and can be achieved by Continuing Professional Development (CPD). Confidentiality, This means information obtained when providing service to client should not be disclosed to third party to obtain personal advantage. This also means that, information about a client can only be disclosed to third party with the approval from the client or appropriate authority. Professional Behavior, this requires members to behave well,abide by all the rules and regulations of the profession and not to put up a behavior that will bring the name of the Institution into shame.
Ethics is the study of how to behave well
Study of ethics is very necessary as its guides the professional