PHI 2397 Lecture Notes - Lecture 10: Chartered Accountant, Financial Statement, Fiduciary
10 Dec 2016
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Document Summary
Accounting profession is a result of industrialization of business. Practitioners previously were trusted as their honesty and integrity. However, this changes after the collapse of enron in 2002. Profession who considers public as their priority. Profession who considers employer and customers as priorities. Professional accountant codes of practice: public interest: respect social political institutions, integrity: do not bring disrepute to the profession, independence: stay autonomy. For organization that provides external certification to access its financial statement, those who benefit from account"s declaration must not influence the result. Independence is a guideline that makes accountant work with ethic, transparence, honesty and integrity: objective: stay out of conflict of interest, confidentiality: don"t breach trust, sensitive information, diligence: adhere principles. Independence is concerned to avoid and manage coi. Organizations have different mechanisms to deal with coi. Coi usually occur at individual level and arise by the misunderstanding of the concept of coi.
