Ethical compliance is key to maintaining public confidence in the accountancy profession. All AIA members are bound by AIA's Constitution which contains a Code of Ethics.
Under our Code of Ethics, every AIA member must follow these five principles:
Integrity
You must be straightforward and honest in all professional and business relationships.
Objectivity
You must not compromise professional or business judgment because of bias, conflict of interest or the undue influence of others.
Professional competence and due care
You must maintain professional knowledge and skill [in practice, legislation and techniques] to ensure that a client or employer receives competent professional service.
Confidentiality
You must not disclose confidential professional or business information or use it to your personal advantage, unless you have explicit permission to disclose it, or a legal or professional right or duty to disclose it.
Professional behaviour
You must comply with relevant laws and regulations, and avoid any action that may bring disrepute to the profession.
The Code can be accessed here.
Acting in the Public Interest
The AIA’s robust membership requirements and disciplinary framework adds additional reassurance and protection to the businesses that rely on accountancy services.
All accounting professionals must act in the public interest using their professional judgement and skills to build trust in the profession.
It is for these reasons that AIA members are expected to engage with and apply the fundamental ethical principles to ensure:
- The client’s needs are met
- The public interest is not compromised
- Risk is properly managed
- All parties are treated fairly
Where an AIA member’s professional behaviour falls short of the ethical standards we expect, we will investigate and take action.
Professional Conduct in Relation to Taxation [PCRT]
AIA has adopted the Professional Conduct in Relation to Taxation [PCRT].
This guidance, written by professional bodies for members working in tax, sets out the hallmarks of a good tax adviser, and in particular the fundamental principles of behaviour that members are expected to follow. The guidance has been recognised in the courts as ‘setting the standard’ for use by all tax advisers in the UK.
This guidance aims to make clear any tax adviser’s obligation to advise their clients or businesses accurately and thoroughly of the implications of their actions, including reputational and practical aspects. It also addresses common, as well as more complex and difficult, situations with expert commentary in an ever-changing environment.
General
110.1 A1 There are five fundamental principles of ethics for professional accountants:
To:
[i] Attain and maintain professional knowledge and skill at the level required to ensure that a client or employing organisation receives competent professional service, based on current technical and professional standards and relevant legislation; and
[ii] Act diligently and in accordance with applicable technical and professional standards.
View subsection 113 on Professional competence and due care
R110.2 A professional accountant shall comply with each of the fundamental principles.
110.2 A1 The fundamental principles of ethics establish the standard of behaviour expected of a professional accountant. The conceptual framework establishes the approach which an accountant is required to apply to assist in complying with those fundamental principles. Subsections 111 to 115 set out requirements and application material related to each of the fundamental principles.
110.2 A2 A professional accountant might face a situation in which complying with one fundamental principle conflicts with complying with one or more other fundamental principles. In such a situation, the accountant might consider consulting, on an anonymous basis if necessary, with:
- Others within the firm or employing organisation.
- Those charged with governance.
- A professional body.
- A regulatory body.
- Legal Counsel.
However, such consultation does not relieve the accountant from the responsibility to exercise professional judgment to resolve the conflict or, if necessary, and unless prohibited by law or regulation, disassociate from the matter creating the conflict.
110.2 A3 The professional accountant is encouraged to document the substance of the issue, the details of any discussions, the decisions made, and the rationale for those decisions.