First of all we must define what is Ethics and know a little of its foundations, but from the perspective of several authors who speak of it. We will know IFAC, its structure, the Number of members, its committees, we will emphasize the Ethics Committee, we will compare IFAC's Current Code of Ethics with LAW 43 OF 1990. We will know its differences and similarities.
Ethics
There are different types of ethics, such as: "virtue ethics, epicureism, stoicism, neoplatonism, Kantian ethics or duty, utilitarianism, superman ethics, Marxist ethics, Christian ethics", these divisions are according to the thought or knowledge of the author, let's see then some concepts of ethics seen from the point of view of some authors. "Ethics in its aspect of moral treatise, studies the metaphysical nature of error, so that the human mind can free itself from it"
Spinoza refers to the affections of man and according to these his actions against ethics, depending on the affection in which he finds himself will be his ethics, that is, if our affection is that of rancor, this will make our ethics be different from if we are in a state of enjoyment. Although the discussions against Spinoza's claims for his support in the real as well as the truly rational are great, in addition to highlighting his belief in God as the only substance or cause of all reality, it is an ethical meaning that deals with very important points of being.
Other authors then claim that ethics is the real consciousness, is objectively decide whether it is good or bad, there is an assessment and this should not
focus on just appreciate, you must also have discretion to then separate the good from the bad "criterion of similarity, whatever is like me is good, the opposite is bad. ”
When referring to ethics, it is necessary to separate it from morality, although these are similar etymologically speaking, since ethics comes from the Greek ethos, moral comes from the Latin mos, with the same custom meaning; but morality is the set of rules that are arranged in the "good" "bad" society, among them are: economic, religious, educational, etc. And ethics comes to possess itself at a higher level to become the philosophy of morality understood as duty, to continue for the good and avoid the opposite. "Ethics does not create morality. He meets her and studies her ”.
It is necessary to clarify that according to the economic or social level ethics is also different, it is important to affirm that people of the same economic level tend to have similar concepts or demonstrations of ethics, due to their common conditions; This fact considered as axiomatic is not accepted by many authors, but it is difficult to generalize as some suggest, avoiding borders transposed by the economic and social conditions that take ethics further, going beyond the walls imposed by society itself.
International federation of accountants ifac
Structure of the ifac
THE INTERNATIONAL FEDERATION OF ACCOUNTANTS, began in 1973, but its formal approval was in Munich in 1977, thanks to the signed agreement of 49 countries and 63 associations, at the XI International Accounting Congress, since much of what constituted the ICCAP will become IFAC. Not forgetting that the IASC did not participate in this change and remained IASC.
IFAC has committees that are in charge of regulating aspects such as Education, Ethics, Auditing, among others, which are: Education Committee, Ethics Committee, Financial and Accounting Administration Committee, Public Sector Committee, Committee of International Auditing Practices, Information and Audit Committee and the Membership Committee.
Currently IFAC brings together 163 organizations from 119 countries, which are 2,500,000 professional accountants.
One of the main objectives of IFAC is to help with the formation and development of National and regional organizations that serve public accountants, and the public that uses its services.
IFAC seeks high professional technical quality and standards, it also seeks to strengthen the accounting profession by guiding with its regulations.
IFAC seeks to serve the public interest and by issuing its standards it seeks accountants to put them into practice for the better development of their profession. And a better direction of its management in the entities where they work.
IFAC is an entity that supports accountants around the world, who are members of their community, and who are of high quality and professionalism.
It also voices all the thoughts of the profession so that it spreads throughout all countries, and so that they are put into practice seeking the satisfaction of all accountants and all users of information.
Education and Experience give the Professional Accountant potential, a structure of professional values for a correct judgment and to act in an ethical way, in the interests of society and the profession. (International Accounting 2005 Pág, 198, Eutimio Mejia Soto- Carlos Alberto Montes Salazar)
And it is here at the moment where we speak of the ETHICS COMMITTEE that is in charge of issuing standards of conduct, and indicates the fundamental principles that accountants must take into account in order to achieve similar objectives.
IFAC, through its Ethics Committee, issues the COGIDO DE ÉTICA para accountants, which serves as a model for all codes of ethics in all countries and affiliated organizations.
We have to take into account that IFAC reviews its standards, to always be in tune with the current situation, of the changes that are happening in the world, because these changes are important for the continuous functioning of society and the environment that are important influencing factors in people's lives.
In the search for accounting harmonization, IFAC establishes a legal framework of the CODE OF ETHICS in order to contribute to the improvement of the Accounting Profession, without leaving aside the differences in culture, language, legal and social systems; For this reason, it becomes important that each country obtain its regulation in accounting principles directed to the MORAL ETHICS of the profession.
The work of IFAC and LAW 43 OF 1990 are aimed at seeking the quality of the accounting profession, implementing a series of ethical principles.
The mission of these two codes is to guide the accounting professional through standards that aim at quality and public interest based on the CODE OF ETHICS necessary to direct the professional and satisfy the basic needs and requirements of interest in credibility, professionalism and quality of services emphasizing the same fundamental principles for all professional accountants.
Both the IFAC CODE OF ETHICS AND THE LAW43 OF 1990 have similarities in the fundamental principles, both codes of ethics express that for a good quality of service the accounting professional must comply with the ethical and moral standards based on his personal and accounting principles such as the observance of the rules and practices of these; to have a good quality control because the rectitude and honesty to the Public Accountant gives him the necessary impartiality not to allow personal damages to counteract his objectivity, thus obtaining mental and critical independence to make judgments, responsibility, qualified ability to practice the profession and not to reveal any information of the company, likewise keep their technical and scientific knowledge updated and be a competent professional always respecting their colleagues,Being honest with them and likewise abstaining from taking any action that affects the reputation of the accounting profession.
Although the IFAC CODE OF ETHICS is divided into three parts as follows:
1. Applies to all professional accountants unless otherwise specified.
2. Applies only to those accountants in public professional practice.
3. Involves professional accountants employed.
In these three points we also find similarities with LAW 43 OF 1990.
Among these, the accounting professional must abstain from rendering his services if he is related to his client. Likewise, he must abstain from accepting charges or acts that go against morals and ethics, and the public accountant will excuse himself from rendering services. for which it is not trained. In order to promote yourself in the market, the public accountant must make your advertising in an objective and real way. It is not allowed in this advertisement to discredit the work of a colleague; The accountant will determine your fees based on your skills, knowledge, and experience.
Another important aspect to take into account in national regulations is THE CODE OF ETHICS contained in LAW 43 OF 1990, it is nothing more than a simple summary of the IFAC CODE OF ETHICS. That is why in LAW 43 OF 1990
the following aspects are missing:
1. Tax Professional Practice: When the accounting professional provides tax services, he must be objective and comprehensive and the doubts must be in favor of the client if they are supported. If the public accountant learns of an error in a tax return, he is responsible for advising his client, who must report this situation to the tax authorities with the authorization of the client.
2. Activities Beyond Borders: If an accounting professional performs work outside his country of residence, he must apply the strictest ethical standards between the IFAC code of ethics and those of the country where he is located.
3. Independence: Related to the insurance contracts which seek to enrich the credibility of the information of a subject matter if it meets the accounting criteria, the subject matter can take many forms such as:
- Data: Historical information, statistics and performance indicators. Systems and Processes: Internal controls Behavior: Corporate governance, compliance with regulations, human resources practices.
Members of the assurance team, the firm and the network of firms should be independent of the audit client and the unaudited client.
4. Clients 'Money: The public accountant must not keep clients' money, it can be considered that they are obtained or will be used in illegal activities. When he confers money from others, the accountant must keep the money, personal money or the firm's money separate; use monies only for what they are earmarked for and be ready to account to those entitled to such accounting.
5. Conflict of Interest: Accounting professionals have a duty of loyalty to their employer as well as their profession and must support the legitimacy, objectives, rules and commitments designed to support them.
Conclusions
Ethics is then like following the right path and avoiding the bad, so
differentiate positive behaviors from negative ones.
IFAC is a standard-setting body, these standards are auditing, education, ethics, standards for the public sector among others. These standards guide all professional accountants worldwide.
IFAC serves as support to accountants. IFAC is the body that carries the voice of all the standards related to the accounting profession.
In this sense, IFAC issues Ethics standards through its Ethics Committee, which is in charge of building a model of ethics standards for Public Accountants around the world. And promote compliance with the Fundamental Principles of Ethics, such as integrity, objectivity, professional competence and due care, confidentiality, professional behavior, among others. Always looking for benefits for accountants and for all users who interact with the professional directly and indirectly. They form the basis for accepting standards of conduct that guide the accountant.
LAW 43 OF 1990, was a summary of the IFAC CODE OF ETHICS, of the moment, and as we all know IFAC's code of ethics has gone through revisions and changes, changes that were after the date of LAW 43, It would be good if Colombian legislation took these changes into account, since it is very close to reality and to the changes we are experiencing in the world.
Of course, we have to take into account the changes in our country and our environment in order to observe what we have left over or what we need to supplement with this IFAC CODE.
Bibliography
González A., Luis José. Latin American Ethics. Bogotá DC: Santo Tomás University, 1988.
Spinoza, Baruch. Ethics. Spain: RBASA, 1984
Soto Mejia Eutimio - Montes Carlos Alberto-Contaduría Internacional 2005, Armenia
University of Quindío 2005. Salazar
Valcárcel, Amelia. Hegel and Ethics on Overcoming "Mere Morals". Barcelona: Anthropos. Promat, S.Coop. Ltda., 1988.
González A., Luis José. Latin American Ethics. Bogotá: Santo Tomás University, 1988, p. twenty-one.
Spinoza, Baruch. Ethics. Spain: RBASA 1984, p. 3.
Valcárcel, Amelia. Hegel and Ethics on Overcoming "Mere Morals". Barcelona: Anthropos.Promat, S. Coop.Ltda., 1988, p. 09
González A., Luis José. Latin American Ethics. Bogotá: Santo Tomás University, 1988, p. 28.
