Chapter 3
The Accounting Framework
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or benefit, that is for unauthorized use, or is confidential relating to an employer’s or client’s
affairs, based on information obtained in the course of his or her duties.
• Members shall strive to continually upgrade and develop their technical knowledge and skills
in the areas in which they practice as professionals.This technical expertise shall be employed
with due professional care and judgment.
• Members shall adhere to acknowledged principles and standards of professional practice.
• Members shall not be associated with any information that the member knows, or ought to
know, to be false or misleading, whether by statement or omission.
• Members shall always act in accordance with the duties and responsibilities associated with
being members of the profession, and shall work in a manner that will enhance the image of
the profession and the association.
Some of the common concerns about ethics in a business are issues related to
• cash discounts
• operation of a petty cash fund
• manipulation of expenses to manage earnings
• trading a company’s shares based on insider information (insider trading)
There is often a fine line between the law and ethics. A behaviour can be quite legal, but unethical.
For example, a manager may employ his nephew in the company where he is working. He decides
to pay his nephew a higher salary than others in a similar position in the business. While this
practice may not be illegal, it could be considered unethical. Many organizations create their own
set of rules pertaining to ethics and morals.
