ACTIVITY 2

Subject:
AUDIT I
NRC 19837

Presented by:
Mariapaula Daza Pelaez
ID: 00632845

Minuto de Dios University Corporation

ESSAY ON PROFESSIONAL ETHICS

Every organization delegates its workforce to the responsibility of directing,

manage and execute operations in transactions ending with financial statements that

be understandable, reliable, comparable and above all meet the needs of the

users reflecting the organization's situation at a given date as a result

of the accounting operations prepared by competent professionals who are able to act

with sincerity, integrity, morality, and honesty in any circumstance that arises

present.

For the above, the social responsibility of the accounting profession will be sufficient in the

knowledge of the code of conduct or resources that should be reviewed must be employed

to achieve the proper fulfillment of the profession According to Kotler (1995), the public accountant

has no financial or any other interests in the company or institution on whose statements

financial experts have expressed their professional opinion, the interests in case they exist,

could result in the loss of their objectivity or impartiality, or influence, in some other way

in the free exercise of their professional judgment.

It should be added that the Public Accountant is bound by the following principles

the basics of professional ethics which are the following:

Integrity

The integrity of the Public Accountant must maintain its moral integrity intact.

whatever the field of their performance in the professional exercise. According to this,

he is expected to show uprightness, probity, honesty, dignity, and sincerity in any

circumstance.
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Objectivity

Objectivity represents above all impartiality and acting without biases in all

matters that correspond to the professional field of the Public Accountant. The above

it is especially important when it comes to certifying, ruling, or giving an opinion on the

financial statements of any entity.

Professional competence and updating.

The Public Accountant should only take on work for which he or his associates or

collaborators have the necessary capabilities and suitability for the services

committed to be carried out effectively and satisfactorily, likewise, the Public Accountant,

while remaining in active service, he shall be considered permanently obliged to

update the knowledge necessary for your professional performance and especially

those required by the common good and the imperatives of social and economic progress.

Confidentiality.

The relationship between the Public Accountant and the user of their services is the primary element.

in professional practice. For this relationship to be fully successful, it must be based on a

responsible, loyal, and authentic commitment, which imposes the strictest confidentiality

professional.

Professional behavior
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The public accountant must obtain it by performing acts that negatively affect the

reputation of the profession. To achieve this, the public accountant must always keep in mind that the

sincerity, good faith, and loyalty to their colleagues are the basic conditions for the

free and honest practice of the profession, peaceful and cordial coexistence among its clients,

third parties and the general public.

In Colombia, the accounting profession begins to be taught in classrooms only until

1960 according to Law 145 of 1960, and its importance is publicly evidenced in the

economic activity with the enactment of Law 43 of 1990. (Rojas, 2011).

What guaranteed the accountant's performance is the technical training received and the

procedure of the institution that grants validity, nowadays the profession of accountant

the public must be integrated as the adoption of International Standards of

Financial Information (IFRS), the International Standards on Auditing (ISA) and the Code

of International Ethics (IFAC), the importance of compliance to present is reaffirmed

transparent, clear, and comparable information enabling sound decision-making;

the accountant must practice the profession out of personal conviction, out of desire to do things

well, correct, innately, and not simply because it is written, and must be adhered to

a social parameter that does not allow them to be vulnerable to manipulation.

The International Ethics Code (IFAC) is meant to serve as a model on which to base.

based on national ethical guidelines and establish standards of conduct for the

professional accountants, highlighting the objectives and fundamental principles that must be
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fulfilled by the Accountant in order to achieve a higher ethical quality in Accounting

Public.

It is for this reason that Arens, Elder, Beasley (2007) propose that:

The fundamental reason for displaying a high level of professional conduct by

any profession is the necessity that the service provided has the trust

public, regardless of the individual providing it. For the Public Accountant it is

it is essential that your clients and external users of the financial statements have

trust in the quality of your audit and other services. If service users do not

they have confidence in doctors, judges, public accountants, the capacity to reduces

these professionals to serve effectively their clients and the public. (p.78)

Likewise, the accountant must carry out an internal control system.

moral and correct way where professional ethics standards apply that includes

principles and values but at the same time ethical behavior along with internal control,

action taken by management with the aim of increasing the likelihood of achieving the objectives

they are fulfilled.

To conclude, the behavior of the Certified Public Accountant constitutes a component

inseparable in the professional practice of the accountant and their ethical behavior both in their

independent character, like its exercise under dependency in an entity exercising

administrative and/or accounting functions, protects and safeguards the assets, verifies the

accuracy and reliability of accounting data, as this requires quality, with

the object that confirms that the ethical conduct conditions have been met

professional and academic.

The social responsibility of the Public Accountant in their professional practice

it forces him to comply with international standards that include the technical regulations as well

how the codes of conduct and makes it necessary for professionals in this area to provide

greater attention to individual ethical values and knowledge of the code of ethics

professional which will increase public confidence in the exercise of the

Public Accounting.
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Conclusions

It is time to reivindicate the accounting profession, just as there is a concern

to unify the accounting language, it is important to emphasize the improvement of the

learning the ethical values that will allow to trust information again

supplied, trust in what we do as a society for the common good.

Accountants must be prepared to practice their profession responsibly,

to face a society that must learn to be grounded in ethics.

Accounting reflects the ethical behavior of entities, of individuals, of the

what we are as a society.

The ethics applied in the accounting profession is a reflection of the training received, we can

to see the shortcomings and the need to improve in the professional field.

Ethical compliance in the development of the accounting profession prevents companies from

they go bankrupt due to inappropriate practices, which will lead to a just society, to a

equilibrium in the economy.

Bibliography

Arens, Alvin, Elder. Beasley (2007). Auditoría Un enfoque integral. México. Pearson
Prentice Hall.

International Ethics Standards Board for Accountants (2009). Code of Ethics

Decree 2420 of 2015. Ministry of Commerce, Industry and Tourism. Presidency of the
republic. December 14, 2015

De Nobrega, F. (2009). Ethics and trends in the accounting discipline. Accounting Current
FACES,12(19), 19-27

González, M. (2008). Influence of the public accountant's ethics on internal control of the
[Link] from: [Link]
pdf.
Rojas, W. R. (2011). Accounting education in Colombia: 1960–2000: at the service of the
modern economic fraternity. Administration notebooks, 18(28), 15-48.

Vélez, L. E. M. (2012). Ethics and research key elements for sizing