The Institute has issued a revised Code of Ethics, which is effective from 1 June 2011. Certain transitional arrangements are included in Section 290 of the Code. Additionally, Part D of the Code which relates to insolvency practitioners has not been revised.
To view the previous version of the ICAS Code, please click here: ICAS Code of Ethics (applicable up to 31 May 2011)
Introduction
Professional accountants shall follow the guidance contained in the fundamental principles in all of their professional and business activities whether carried out with or without reward and in other circumstances where to fail to do so would bring discredit to the profession. A professional accountant shall follow the requirements, including prohibitions or mandatory actions, where circumstances are the same as, or analogous to, those addressed by those requirements. Failure to follow such guidance may be justified in those rare circumstances where to follow a precise prohibition or mandated action would result in failure to adhere to the fundamental principles.
Professional accountants shall be guided not merely by the terms but also by the spirit of this Code and the fact that particular conduct does not appear among a list of examples does not prevent it amounting to misconduct.
Professional accountants shall ensure that work for which they are responsible, which is undertaken by others on their behalf, is carried out in accordance with the requirements of this Code. Member firms are reminded that this Code applies to their employees, whether members ot not and that they are responsible for applying this requirement.
Certain areas of work are covered by statute to professional accountants who are in practice, whether or not with other persons, namely investment business, insolvency and audit. In these areas professional accountants may be subject to rules laid down by laws and regulation, breach of which can give rise to discliplinary proceedings against the professional accountant.
If the advice in this Code conflicts with laws and regulations, professional accountants are bound to follow the laws and regulations.
Professional accountants working overseas shall comply with this Code unless to do so would breach local laws and regulations.
Summary of the Main Changes to the Code:
The main change in the Code is that use of the word "should" has been replaced with "shall" to promote easier understanding of the requirements of the Code around the world.
Summary of the Impact of theCode:
Auditors undertaking an audit in the UK will still be required to comply with the requirements of the APB's Ethical Standards for Auditors which can be viewed at: http://www.frc.org.uk/apb/publications/ethical.cfm
As with the previous version of the Code it is split into 4 sections:
Part A applies to all members;
Part B applies to members in practice;
Part C applies to members in business; and
Part D applies to insolvency practitioners - this Part of the Code has not been revised.
Section 290 of the Code is currently largely redundant as this deals with independence in relation to audit and review engagements. As auditors in the UK have to comply with the APB's ethical standards for auditors there is no requirement to also have to comply with section 290 of the Code. Additionally, the APB has also statedthat it is not aware of any significant instances where the relevant parts of the IESBA Code of Ethics are more restrictive than the APB's Ethical Standards. On those rare occasions where a member is undertaking a review assurance engagement they will need to comply with Section 290 of the Code. Where a member acts as an independent examiner for a charity then this will be classified as a review engagement. Due to the nature of such assignments and the benefit that these charities receive from having a chartered accountant review their accounts, on many occasions on a voluntary basis, it has been decided not to require members acting in such a role to comply with the detailed requirements of section 290 of the Code. Rather, such membersshall comply with the independence requirements of the respective regulator and are specifically scoped out of the requirements of Section 290 of this Code.
Members are also reminded that the Bribery Act 2010 becomes applicable on 1 July 2011.
Code of Ethics, Applicable 1 June 2011
To view or download the Code please click below: