Academic journal article Journal of Accountancy

IFAC Proposes Ethics Upgrade

Academic journal article Journal of Accountancy

IFAC Proposes Ethics Upgrade

Article excerpt

The International Federation of Accountants issued for exposure modifications to its Code of Ethics for Professional Accountants. The revised code includes more guidance on the disclosure of confidential information and the employment of nonaccountants for certain engagements. Comments on the proposals are due no later then June 30.

Disclosure vs. confidentiality

According to the proposal, there are times when professional, legal or other requirements may override the need for confidentiality. The revisions provide guidance to accountants who have determined they should disclose information that otherwise would be considered confidential. "This draft focuses on the sensitive nature of such situations," said John W. Gruner, IFAC director general. "It is not always easy to determine when or when not to disclose confidential information."

The ED also covers guidance for accountants who employ the services of nonaccountants. Because increasingly accounting firms are being called on to do nontraditional accounting work, they often employ the services of other professionals, such as lawyers, actuaries and valuers. According to the proposal, regardless of who actually performs a service for a client, the accountant must take ultimate responsibility. …

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