6 Principles of accounting:
Work in the public interest
In order to maintain public trust in their field, accountants are obligated to serve the greater good by prioritizing the wellbeing of individuals and organizations, as well as promoting the interests of society as a whole.
Act with Integrity
Accounting experts are expected to uphold integrity by providing comprehensive and precise reports while refraining from circulating any falsified or deceptive information. In all circumstances, it is imperative to exercise sound judgment and adhere to established ethical codes.
Avoid conflicts of interest
Accounting professionals must steer clear of any conflicts of interest by making impartial decisions and recommendations that are within the scope of their expertise for the benefit of their clients. For instance, offering financial product advice is only permissible with an Australian Financial Services License (AFSL), and even then, it would be inappropriate to favour one financial product over another due to incentives or commissions from the vendor.
It is crucial to maintain objectivity and prevent external factors from influencing decisions or impairing judgement.
Respect client confidentiality
Accounting professionals are obligated to honour client confidentiality and refrain from divulging any information to third parties without explicit authorization. The sole circumstance in which confidential information can be disclosed is if there is a belief that there is a legal or professional obligation to do so.
Build professional competence
To perform duties effectively, accounting professionals must stay current with best practices, prevailing legislation, and emerging technologies. Neglecting to do so may result in inadequate service or outdated advice.
Maintaining ethical standards may necessitate seeking guidance from peers or other experts when confronted with a specific situation. Additionally, it is imperative to provide adequate supervision and training to junior team members to enable them to carry out their responsibilities efficiently.