1. TABLE 6.1 Essential Features (Bayles) WHAT MAKES A PROFESSION
Extensive training
Provision of important services to society
Training and skills largely intellectual in character
Typical Features
Generally licensed or certified
Represented by organisations, associations, or institutes
Autonomy
Foundation of Ethical Values (Behrman)
Significantly delineated by and founded on ethical considerations rather than techniques or tools

2. TABLE 6.2
FEATURES, DUTIES, RIGHTS, & VALUES OF THE ACCOUNTING PROFESSION
Features
Provision of important fiduciary services to society
Extensive knowledge and skill are required
Training and skills required are largely intellectual in character
Overseen by self-regulating membership organisations
Accountable to governmental authority
Duties essential to a fiduciary relationship
Continuing attention to the needs of clients and other stakeholders
Development and maintenance of required knowledge and skills, including professional scepticism
Maintenance of the trust inherent in a fiduciary relationship by behaviour exhibiting responsible values
Maintenance of an acceptable personal reputation
Maintenance of a credible reputation as a profession
Rights permitted in most jurisdictions
Ability to hold oneself out as a designated professional to render important fiduciary services
Ability to set entrance standards and examine candidates
Self-regulation and discipline based on codes of conduct
Participation in the development of accounting and audit practice
Access to some or all fields of accounting and audit endeavour
Values necessary to discharge duties and maintain rights
Honesty
Integrity
Objectivity, based on independent judgement
Desire to exercise due care and professional scepticism
Competence
Confidentiality
Commitment to place the needs of the public, the client, the profession, and the employer or firm before the professional's own self-interest

3. TABLE 6.3
MOTIVES INFLUENCING PEOPLE AT KOHLBERG’S SIX STAGES OF MORAL REASONING
STAGE DESCRIPTION
MOTIVE FOR DOING RIGHT
Preconventional
Self-interest
1. Obedience
Fear of punishment and authorities
2. Egotism–instrumental and social exchange
Self-gratification, concern only for oneself “Let’s make a deal”
Conventional
Conformity
3. Interpersonal concordance
Role expectation or approval from others
4. Law and duty (social order)
Adherence to moral codes, or to codes of law and order
Post-conventional, Autonomous, or Principled
Interests of Others
5. General individual rights and standards agreed upon by society
Concern for others and broader social welfare
6. Self-chosen principles
Concern for moral or ethical principle

4. TABLE 6.4
NATIONAL & INTERNATIONAL ACCOUNTING ORGANIZATIONS OPERATING IN NORTH AMERICA
NAME
DESIGNATION
PRIME MANDATE(S)
LOCATION
American Institute of Certified Public Accountants (AICPA)
CPA
Auditing, management accounting
United States
Institute of Management Accountants (IMA)
CMA
Management accounting
Chartered Professional Accountants of Canada (CPAC)
Canada
Association of Chartered Certified Accountants (ACCA)
ACCA
Accounting education
International

5. TABLE 6.5
CONTRIBUTIONS TO THE NORTH AMERICAN REGULATORY FRAMEWORK FOR PROFESSIONAL ACCOUNTANTS
ORGANIZATION
CONTRIBUTION GOVERNING ORGANIZATION’S MEMBERS/USERS
American Institute of Certified Public Accountants (AICPA)
CPA designation, statements of Auditing Standards (SAS), research studies,
journal articles, code of conduct
Association of Accountants and Financial Professionals in
Business (IMA)
CMA designation, statements of accounting practice, research studies,
Financial Accounting Standards Board (FASB)
Financial Accounting Standards (FAS)
Chartered Professional Accountants of Canada (CPAC)
CPA designation, accounting and auditing standards in Canada, research studies, journal articles, code of conduct
U.S. Securities and Exchange Commission (SEC)
Regulations related to U.S. public securities markets including corporate disclosure and governance, GAAP, GAAS, behavior of auditors and other professionals practicing before the SEC. Regulation in respect to
disclosure for companies raising funds in the USA. Standards of
independence for CPAs auditing SEC companies.
Ontario Securities Commission (OSC)
Regulations related to financial disclosure in Canada's principal securities market (Ontario), whose regulations are accepted by the SEC.
U.S. and Canadian courts
Common law decisions affecting legal liability
International Federation of Accountants (IFAC):
International Ethics Standards Board for Accountants
(IESBA)
International Auditing and Assurance Board (IAASB)
International Accounting Standards Board (IASB)
International Financial Reporting Standards
Foundation (IFRS)
Promotes global harmonization of standards
International Code of Ethics
Auditing Standards (ISA)
Accounting and auditing standards (IAS)
IFRs, IFRIC, SIC
Public Accounting Oversight Boards
PCAOB
CPAB
Oversight in the U.S. (PCAOB) and Canada (CPAB)
Issues Auditing Standards (U.S.), inspections, sanctions
Inspection reports, sanctions

6. TABLE 6.6 Introduction and purpose
TYPICAL FRAMEWORK FOR A CODE OF CONDUCT FOR PROFESSIONAL ACCOUNTANTS
Introduction and purpose
Fundamental principles, standards, and risk assessment approach
General rules applicable to public practice, and in business
Specific rules applicable to public practice, and in business
Discipline
Interpretations of rules

7. TABLE 6.7 Members should: act in the public interest,
FUNDAMENTAL PRINCIPLES IN CODES OF CONDUCT FOR PROFESSIONAL ACCOUNTANTS
Members should:
act in the public interest,
at all times maintain the good reputation of the profession and its ability to serve the public interest,
perform with:
integrity
objectivity & independence
professional competence, due care, and professional skepticism
confidentiality,
not be associated with any misleading information or
misrepresentation, and
continually assess the risk of faling to observe those principles

8. TABLE 6.8
IFAC 2015 CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS: FUNDAMENTAL PRINCIPLES & CONCEPTUAL RISK MANAGEMENT FRAMEWORK
Fundamental Principles (Section 100.5)
A professional accountant shall comply with the following fundamental principles:
(a) Integrity – to be straightforward and honest in all professional and business relationships.
(b) Objectivity - to not allow bias, conflict of interest or undue influence of others to override professional or business judgments.
(c) Professional Competence and Due Care - to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques, act diligently and in accordance with applicable technical and professional standards.
(d) Confidentiality - to respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose, nor use for the personal advantage of the professional accountant or third parties.
(e) Professional Behavior - to comply with relevant laws and regulations and avoid any action that discredits the profession.
Conceptual Risk Management Framework (Sections )
The IFAC Code also establishes a conceptual risk management framework and requires professional accountants to “identify, evaluate, and address threats to compliance with the fundamentals.” (Sec ) In so doing, the professional accountant must take into account any safeguards created by the profession, legislation, regulation or in the work environment. (Sec ) The 2015 IFAC Code also identifies conflicts of interest as a major threat to be considered, and specifies conflict resolution and reporting steps.

9. TABLE 6.9
POSSIBLE SANCTIONS FOR UNETHICAL BEHAVIOR UNDER PROFESSIONAL ACCOUNTING CODES OF CONDUCT & REGULATORY AUTHORITIES
LEVIABLE ON THE
PROFESSIONAL
ACCOUNTING FIRM
Caution
Yes
Reprimand
Review by peer
Requirement to complete courses No
Suspension:
for a specified period
for an indefinite period
until specific requirements are completed
from appearing before regulatory agencies (SEC, OSC)
from auditing SEC or OSC registrant companies
No/Yes*
Expulsion from membership
Compensation for damage
Fine
Costs of hearing
Ancillary orders
for community work
financial support, etc.
. * The SEC has suspended a firm’s ability to audit SEC registrants and/or take on new clients
Source: Distillation of discipline cases from North American jurisdictions

10. TABLE 6.10
IFAC 2015 CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS TABLE OF CONTENTS
Page
PREFACE
PART A: GENERAL APPLICATION OF THE CODE
100 Introduction and Fundamental Principles
110 Integrity
120 Objectivity
130 Professional Competence and Due Care
140 Confidentiality
150 Professional Behavior
PART B: PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE
200 Introduction
210 Professional Appointment
220 Conflicts of Interest
230 Second Opinions
240 Fees and Other Types of Remuneration
250 Marketing Professional Services
260 Gifts and Hospitality
270 Custody of Clients Assets
280 Objectivity–All Services
290 Independence–Audit and Review Engagements
291 Independence–Other Assurance Engagements ………………………………………. 105
PART C: PROFESSIONAL ACCOUNTANTS IN BUSINESS
300 Introduction
310 Potential Conflicts
320 Preparation and Reporting of Information
330 Acting with Sufficient Expertise
340 Financial Interests
350 Inducements
DEFINITIONS
EFFECTIVE DATE

11. FIGURE 6.1 IFAC 2015 CODE OF ETHICS CONCEPTUAL FRAMEWORK APPROACH
Duty to Society,
Serve the Public Interest
(S 100.1)
Compliance with Fundamental Principles
Integrity, Objectivity
Professional Competence & Due Care
Confidentiality, Professional Behavior
(S 100.5)
Conceptual Framework Approach To
Assessing Threats to Compliance with Fundamental Principles
Identify, Evaluate, Eliminate or Reduce Threats to
Acceptable Levels by Applying Safeguards
And Resolving any Conflicts in Application
Threats (S ) Safeguards (S )
Self-Interest, Self-review Professional Codes, Training or Standards
Advocacy, Familiarity, Intimidation Legislation, Regulation, In Client, Firm or Business
(S )
(S )
Source: IFAC Code of Ethics for Professional Accountants, April 15, 2016 (Section number).

12. TABLE 6.11
THREATS TO NONCOMPLIANCE – AICPA CODE Sections
Compliance with fundamental principles may be threatened by a broad range of circumstances. Many threats fall into the following categories:
Adverse interest threat: that a member will not act with objectivity because the member’s interests are opposed to the client’s interests.
Self-interest threat: that a member could benefit, financially or otherwise, from an interest in, or relationship with, a client or persons associated with the client.
Self-review threats: that a member will not appropriately evaluate the results of a previous judgment made or service performed or supervised by the member or an individual in the member’s firm and that the member will rely on that service in forming a judgment as part of another.
Management participation threat: that a member will take on the role of client management or otherwise assume management responsibilities, such may occur during an engagement to provide nonattest services.
Advocacy threat: that a member will promote a client’s interests or position to the point that his or her objectivity or independence is compromised.
Familiarity threat: that, due to a long or close relationship with a client, a member will become too sympathetic to the client’s interests or too accepting of the client’s work or product.
Intimidation threats/Undue influence threat: that a member will subordinate his or her judgment to an individual associated with a client or any relevant third party due to that individual’s reputation or expertise, aggressive or dominant personality, or attempts to coerce or exercise excessive influence over the member.
IFAC 2015 Code of Ethics for Professional Accountants, Section
AICPA 2015 Code of Professional Conduct, Sections
CPAO 2015 Code of Professional Conduct, Sections 204.3

13. TABLE 6.12
SAFEGUARDS REDUCING THE RISK OF CONFLICT OF INTEREST SITUATIONS
Safeguards Created by the Profession, Legislation, or Regulation AICPA Code S & IFAC Code S
Education, training, experience requirement for entry
Continuing education
Professional standards, monitoring, and disciplinary processes
External review by a legally empowered third party of reports, returns, communications or information produced by a professional accountant.
External review of firm’s quality control system
Legislation governing independence requirements of the firm
Competency and experience requirements for professional licensure
Professional resources, such as hotlines, for consultation on ethical issues
Safeguards implemented by a Client AICPA Code S & IFAC Code
The client has personnel with suitable skill, knowledge, or experience who make managerial decisions about the delivery of professional services and makes use of third-party resources for consultation as needed.
The tone at the top emphasizes the client’s commitment to fair financial reporting and compliance with the applicable laws, rules, regulations, and corporate governance policies.
Policies and procedures are in place to achieve fair financial reporting and compliance with the applicable laws, rules, regulations, and corporate governance policies.
Policies and procedures are in place to address ethical conduct.
A governance structure, such as an active audit committee, is in place to ensure appropriate decision making, oversight, and communications regarding a firm’s services.
Policies are in place that bar the entity from hiring a firm to provide services that do not serve the public interest or that would cause the firm’s independence or objectivity to be considered impaired.
Safeguards Implemented by a Firm AICPA Code S & IFAC Code, Parts B & C
Firm leadership stresses the importance of complying with the rules and the expectation that engagement teams will act in the public interest.
Policies and procedures that are designed to implement and monitor engagement quality control.
Documented policies regarding the identification of threats to compliance with the rules, the evaluation of the significance of those threats, and the identification and application of safeguards that can eliminate identified threats or reduce them to an acceptable level.
Internal policies and procedures that are designed to monitor compliance with the firm’s policies and procedures.
Policies & procedures designed to identify interests or relationships between the firm or its partners & professional staff & the firm’s clients.
The use of different partners, partner equivalents, and engagement teams from different offices or that report to different supervisors.
Training on, and timely communication of, a firm’s policies and procedures and any changes to them for all partners and professional staff.
Policies and procedures that are designed to monitor the firm’s, partner’s, or partner equivalent’s reliance on revenue from a single client and that, if necessary, trigger action to address excessive reliance
18 additional safeguards are listed – see AICPA Code S

14. Protect the Public Interest Professional Service to Clients
FIGURE 6.2
IFAC CODE’S FRAMEWORK FOR INDEPENDENT JUDGMENT
Protect the Public Interest
Professional Service to Clients
Independence of Mind and Appearance
(S 290.8)
Independent Judgment
Integrity
Objectivity
Professional
Skepticism
Source: IFAC Code of Ethics for Professional Accountants, 2005, S & Independence Definition

15. TABLE 6.13
CONFLICTS OF INTEREST EXAMPLES – 2015 AICPA CODE Section
Providing corporate finance services to a client seeking to acquire an audit client of the firm, when the firm has obtained confidential information during the course of the audit that may be relevant to the transaction
Advising two clients at the same time who are competing to acquire the same company when the advice might be relevant to the parties’ competitive positions
Providing services to both a vendor and a purchaser who are clients of the firm in relation to the same transaction
Preparing valuations of assets for two clients who are in an adversarial position with respect to the same assets
Representing two clients at the same time regarding the same matter who are in a legal dispute with each other, such as during divorce proceedings or the dissolution of a partnership
Providing a report for a licensor on royalties due under a license agreement while at the same time advising the licensee of the correctness of the amounts payable under the same license agreement
Advising a client to invest in a business in which, for example, the immediate family member of the member has a financial interest in the business
Providing strategic advice to a client on its competitive position while having a joint venture or similar interest with a competitor of the client
Advising a client on the acquisition of a business which the firm is also interested in acquiring
Advising a client on the purchase of a product or service while having a royalty or commission agreement with one of the potential vendors of that product or service
Providing forensic investigation services to a client for the purpose of evaluating or supporting contemplated litigation against another client of the firm
Providing tax or personal financial planning services for several members of a family whom the member knows to have opposing interests
Referring a personal financial planning or tax client to an insurance broker or other service provider, which refers clients to the member under an exclusive arrangement

16. TABLE 6.14
CONFLICTS OF INTEREST FOR PROFESSIONAL ACCOUNTANTS: A STAKEHOLDER IMPACT ANALYSIS
STAKEHOLDER CATEGORY
SPHERE OF ACTIVITY AFFECTED
EXAMPLES
Self vs. others
Services offered
Improper use of influence
Misuse of information
Conflicting services, shaving quality
Improper purchases of client goods
Improper investments by relatives
Self & others vs. others
Overinvolvement with management or directors erodes objectivity
Client vs. client Employer vs. employer
Serving competing clients or competing employers at the same time
Stakeholder vs. stakeholder
Misuse of information (confidentiality)
Whistle-blowing, reporting to government or regulators

17. IFAC 2001 CODE OF ETHICS VALUES FRAMEWORK Serve the Public Interest
Duty to Society,
Serve the Public Interest
Objectives
Meet Expectations for Professionalism, Performance, Public Interest
Basic Needs
Credibility, Professionalism, Highest Quality Services, Confidence
Fundamental Principles
Integrity, Objectivity, Professional Competence, Due Care,
Skepticism, Confidentiality, Professional Behavior, Technical Standards
Source: IFAC, November, 2001.