Surely there must have been an occasion when you rushed to your regular doctor and requested for a medical certificate to hoodwink your employer into believing that you were genuinely ill, only to receive the following response: “I apologize but I am unable to meet your request as that would be in violation of my professional ethics”. You may have even offered to pay as an inducement but the doctor remained adamant...
Professional ethics is an inherent part of the medical profession as well as other major professions such as law and engineering. Similarly, ethics play a vital role in the accountancy profession, especially more given the profound implications of corporate debacles like Enron, World Com and Transmile Bhd. A post mortem of these corporations revealed that accountants were instrumental in the downfall through their manipulation of financial statements and the complicity of the external auditors, who are professional accountants too. These events sparked distrust towards the highly respected profession and culminated into the current debates questioning the role of accountants in safeguarding public interest.
The Oxford dictionary defines “ethic” as “a moral principle or set of principles”. Indeed, professional ethics is a set of moral standards applicable to all professionals. Each professional body has its own set of ethical code such as the ACCA’s Code of Ethics and Conduct, which requires its members to adhere to a set of fundamental principles in the course of their professional duty, namely confidentiality, objectivity, professional behaviour, integrity and professional competence and due care.
The main aim of professional ethics is to serve as a moral guideline for professional accountants. It is inevitable that an accountant will face numerous ethical dilemmas in the course of duty, the most common of which is the accountant being asked to approve “commissions” which are actually kickbacks, a form of bribery. By referring back to the set of ethical guidelines, the accountant is able to decide on the most appropriate course of action, which will be in line with the professional body’s stance on ethics. Reverting back to the example, the accountant will be aware that by approving the “commission” payments, it is a violation of the principle of “integrity” since these are not transparent commissions. Furthermore, the accountant’s act will be in violation of “professional behaviour” since the public will perceive that the accountant was the crook who approved the payments.
Secondly, the presence of a code of ethics is a form of declaration by the professional body to the public that it is committed to ensuring the highest level of professionalism amongst its members. It also serves as a reminder to members that as long as they are part of the body, they are bound by these ethical rules and thus, will be severely reprimanded should they fail to abide. It is this binding ethical code which distinguishes a professional accountant from a degree holder because the actions of the latter are not scrutinized by a professional body whereas the former is accountable to his/her body for any unprofessional behaviour. It is this set of professional ethics which places accountancy as a highly respected and noble profession amongst society.
In spite of measures implemented by professional bodies to promote ethical behaviour, why is it that the corporate world continues to be rocked by scandals perpetrated by supposedly ethical accountants? It is said that money is the root of all evil. Indeed, when an adequately large sum is offered to an accountant, it is not unusual for the recipient’s ethical principles to crumble. Furthermore, these professional accountants are full-fledged adults, with minds of their own. It is no child’s play for a professional body to inculcate ethical values in its members overnight. Therefore, if one has been brought up in a culture of dishonesty, it is likely that that member will integrate such negative culture with his/her profession, leading to the embarrassing scandals we often hear.
Professional ethics should be the foundation on which an accountant builds a career. Apart from ensuring an orderly corporate world, an ethical accountant will also be respected by society and not perceived as a crook who is more than willing to “cook the books” for a reward. However, it should be acknowledged that these ethical standards serve only as guidelines. Accountants are ultimately humans and one can truly be ethical in the working world if he/she knows how to behave appropriately outside the working world. If not, any code of ethics and conduct will only be a toothless tiger.
