Final answer:
The IESBA Code of Ethics outlines five fundamental principles of professional ethics for accountants: Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Professional Behavior.
Step-by-step explanation:
The IESBA (International Ethics Standards Board for Accountants) Code of Ethics defines five fundamental principles of professional ethics for professional accountants. These principles are designed to guide accountants in their professional responsibilities. The five fundamental principles are:
- Integrity - to be straightforward and honest in all professional and business relationships.
- Objectivity - to not allow bias, conflict of interest, or undue influence of others to override professional or business judgments.
- Professional Competence and Due Care - to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation, and techniques. Accountants are also required to act diligently and in accordance with applicable technical and professional standards.
- Confidentiality - to refrain from disclosing outside the proper scope of services, unless there is a legal or professional right or duty to disclose, any information acquired as a result of professional and business relationships without the proper and specific authority or unless there is a legal or professional right or duty to disclose.
- Professional Behavior - to comply with relevant laws and regulations and avoid any conduct that discredits the profession.
These principles are essential in maintaining public trust in the accounting profession and are applicable to all professional accountants across the globe.