Section 100.1 of the Code of Professional Conduct (CPC) states that “a distinguishing mark of the accounting profession is its acceptance of the responsibility to act in the public interest”. Compliance with the CPC will ensure this and therefore all chartered accountants and aspiring chartered accountants should observe and comply with the CPC.

The CPC introduces us to the 5 fundamental principles that all chartered accountants and aspiring chartered accountants should strive to live by. The 5 fundamental principles are: integrity, objectivity, professional competence and due care, professional behaviour and confidentiality.

Any decision made by a CA that compromises adherence to these principles would not be acting in the public interest and therefore acting against everything the profession stands for. The code provides examples of situations that a CA could be faced with that could compromise adherence to these principles because of specific threats. These threats are: self-interest, self-review, advocacy, familiarity and intimidation.

These situations are limited to practising chartered accountants and therefore aspiring chartered accountants often find it difficult to make the CPC relevant to their personal situations. I have therefore provided you with a few scenarios, relevant to an aspiring chartered accountant to assist you in considering whether you are complying with the CPC.

Situation 1:

You have studied really hard for your test and your confidence is apparent to all your friends as you walk into the exam venue. One of your friends is in tears because she was not able to study due to an audit deadline taking up all her waking hours. She has chosen the seat to your right and has asked that as you finish a question to put your answer paper on the right side of your desk so that she can copy what she is able to see. You feel sorry for her and don’t see how helping her could hurt anyone so you oblige.

Analysis: You were faced with a familiarity threat to integrity, confidentiality and professional behaviour which materialised as you shared your answers. You have therefore acted unethically in breach of your education provider’s terms and conditions but can this affect the public interest? Breaching your education provider’s terms and conditions is not in the public interest. In addition to this, if your friend passes based on your knowledge, your friend could end up qualifying as a chartered accountant without the necessary knowledge. Your friend could then find herself on audits where she does not know what she is doing because of the lack of knowledge which could lead to errors in her workings and ultimately if this is not identified the incorrect audit opinion could be given. It also teaches your friend that cheating (acting unethically) can assist in furthering her career which could lead to a lifetime of unethical behaviour. Recent events (Steinhoff, KPMG, McKinsey etc.) have proven that it may take some time, but you will eventually be caught and the repercussions can be severe.

Situation 2

You have enrolled with a service provider to assist you with your test preparations. Your friend cannot afford to enrol with the service provider and has asked that you share the service provider’s material with him. You want to help your friend so you oblige.

Analysis: By providing your friend with copyright protected material you have breached the Copyright Act as well as the terms and conditions of your contract with the service provider. You were faced with a familiarity threat to confidentiality, integrity and professional behaviour that materialised as you provided your friend with the material. This negatively affects a third party (service provider) and is in breach of the Copyright Act, therefore this action is not in the public interest. Once again, this action teaches your friend that stealing assists in furthering one’s career which could lead to a lifetime of unethical behaviour.

The 2 situations above are experienced by students and aspiring chartered accountants on a daily basis and more often than not the incorrect decision is made in order to help a friend.

I hope this article makes you think before you act as all your actions have consequences.