Revised Code of Ethics: Benefits for Professional Accountants in the US - Research Paper

Introduction

The international ethics standard board of accountants is a self-governing body that serves the people by setting correct standard ethics for professional accountants in the world. The IESBA restructured the code of ethics for professional accountants and made related based ideas of framework official (Ethicsboard.org, 2019). In this case, the essay will look at the impact of the revised code of ethics to professional accountants in the United States and its territories. The article will also look at the current auditing practices in the United States.

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Revised Code of Ethics Issued by IESBA to Professional Accountants

IESBA introduced five principles of ethics that should govern professional accountants (A Universal Code of Ethics for Professional Accountants: Religious Restrictions, 2014). One of the tenets is integrity, which states that a professional accountant should be honest in business transactions and have strong moral principles. Objectivity is another principle, and an accountant should accept to be taken away from the primary goal or interest in work. A professional accountant should also be competent and work in due care, and they should make sure the employer or the client has is happy with their service. Confidentiality is very crucial especially in business, and an accountant should not disclose any information from business relations to other parties unless authorized. A professional accountant should behave according to the rules set by the employer, and they should respect their work, their employer and the clients (Coppage and Sriram, 1992).

Current Auditing Practice in the U.S and its Territories

The auditing teams in America have current issues that affect audit practices, which include; opportunities in new markets, impact in new regulations, developments globally, effects of technology in auditing process among other issues (Anon, 2019). Auditors examine the business, and its financial records, one of the roles that can be delegated to them is looking for investors who are willing to invest in the company, and in this case, they can face competition challenges internationally (Aaajournals.org, 2019). Technology advancement helps auditors in marketing products and makes work more accessible in the company. Auditors in America can audit externally, internally, for the government and also in IT, so they examine global developments internationally (Iasplus.com, 2019). Regulations set can affect current audit practices and improve them to the new code of ethics (Chiang, 2010)

Impact of the Code of Ethics Revised by Iesba to Professional Accountants

The code of ethics made it impossible for an assurance of direct reports from accountants. The subject matter, in this case, is made available to the users under the principle responsibility. Another impact is that the professional accountants' information can be relied on by all the sectors involved in business transactions. This shows competency in the work of professional accountants. A professional accountant who has a senior position in a company has the role of promoting a culture of the code of ethics to the other employees supporting the behavior set. The restructured code of ethics was set to encourage developments in the business world through professional accountants (Ethicsboard.org, 2019).

Conclusion

In conclusion, the code of ethics set by IESBA was to change practices in the work of professional accountants internationally. The restructured code of ethics governs auditing practices that are current in America. Impacts of the revised code of ethics in America and its territories are generally to make accountants more competent and skillful in their work, and mostly, satisfy the employer and the clients. Typically, nothing can progress positively without the practice of ethics.

References

A Universal Code of Ethics for Professional Accountants: Religious Restrictions. (2014). China- USA Business Review, 13(3).

Anon, (2019). [online] Available at: https://www.cpajournal.com/2018/04/18/ethics-resources-ifac-and-iesba/ Apr 18, 2018 ... ... for the Code of Ethics for Professional Accountants and Non-Compliance with Laws ... of Chartered Certified [Accessed 16 Apr. 2019].

Aaajournals.org. (2019). American Accounting Association - Current Issues in Auditing. [online] Available at: https://aaajournals.org/loi/ciia [Accessed 16 Apr. 2019].

Coppage, R. and Sriram, R. (1992). Ethical Issues and the Current Code of Ethics for Management Accountants-Are They Compatible?. Business and Professional Ethics Journal, 11(3), pp.165-178.

Chiang, C. (2010). Insights into current practices in auditing environmental matters. Managerial Auditing Journal, 25(9), pp.912-933.

Ethicsboard.org. (2019). IESBA | Ethics | Accounting | IFAC. [online] Available at: https://www.ethicsboard.org/ [Accessed 16 Apr. 2019].

Iasplus.com. (2019). Revised Code of Ethics for professional accountants. [online] Available at: https://www.iasplus.com/en/news/2018/04/iesba [Accessed 16 Apr. 2019].