In Colombia, the Code of Professional Ethics of the Public Accountant is regulated by Law 43 of 1990
In Law 43 of 1990 the Code of Professional Ethics of the Public Accountant was promulgated, this law includes the set of permanent standards on ethics to which the Public Accountants registered before the Central Board of Accountants in the exercise of the proper functions of the Public Accounting established by laws and its regulations.
In the fourth Chapter and its first Title, the principles that constitute the essential foundation for the development of ethics standards of Public Accounting are declared.
General
Public Accounting is a profession that aims to meet the needs of society, by measuring, evaluating, organizing, analyzing and interpreting the financial information of companies or individuals and preparing reports on the corresponding financial situation, on the which are based on the decisions of businessmen, investors, creditors, other interested third parties and the State regarding the future of said economic entities. This certification will be an integral part of the examination.
The Public Accountant, whether in public or private activity, is a factor of active and direct intervention in the life of public and private organizations. Its obligation is to look after the economic interests of the community, understanding it not only to natural or legal persons directly linked to the company but to society in general and naturally the State.
Essence of the Public Accountant
Moral conscience, professional aptitude and mental independence are the spiritual essence of the Public Accountant
The exercise of Public Accounting implies a social function especially through the public faith that is granted for the benefit of order and security in economic relations between the State and individuals or between them.
Society in general and companies in particular are economic units subject to various external influences. The Public Accountant in the development of his professional activity must use in each case the most appropriate analysis and evaluation methods for the situation that arises, within the guidelines given by the profession and may also resort to specialists from different disciplines to the Public Accounting and the use of all the elements that science and technology make available to you.
Basic principles of professional ethics
Consequently, the Public Accountant must consider and study the user of its services as a separate economic entity that is, relate it to the particular circumstances of its activity, whether internal or external, in order to apply, in each case, the techniques and methods most suitable for the type of economic entity and the type of work entrusted to it.
Observing in all cases the following basic principles of professional ethics:
- Integrity.Objectivity.Independence.Responsibility.Confidentiality.Observations of regulatory provisions.Competition and professional updating.Diffusion and collaboration.Respect among colleagues.Ethical conduct.
1. integrity
The Public Accountant must keep his moral integrity intact, whatever the field of his performance in the professional exercise. Accordingly, righteousness, honesty, dignity, and sincerity are expected of him, in all circumstances.
Other related concepts are included within this same principle that, without requiring an express mention or regulation, may be related to the established standards of action. Such concepts could be those of moral conscience, loyalty in the different planes, truthfulness as a reflection of an undeniable reality, justice and equity with support in positive law.
2. Objectivity
Objectivity represents above all impartiality and action without prejudice in all matters that correspond to the professional field of action of the public accountant. The foregoing is especially important when it comes to certifying, ruling or commenting on the Financial Statements of any entity.
This quality is generally linked to the principles of integrity and independence and is usually discussed in conjunction with this.
3. Independence
In professional practice, the Public Accountant must have and demonstrate absolute independence of mind and judgment with respect to any interest that may be considered incompatible with the principles of integrity and objectivity, with respect to which independence, due to the peculiar characteristics of the profession accounting, should be considered essential and concomitant.
The Ethical Principles that govern the professional conduct of Public Accountants do not differ substantially from those that regulate that of other members of society.
4. Responsibility
Without prejudice to recognizing that responsibility, as a principle of professional ethics, is implicitly included in each and every one of the ethical standards and rules of conduct of the Public Accountant, its express mention as a principle is appropriate and justified for all levels of accounting activity.
Indeed, from it flows the need for sanction, whose recognition in ethical standards, promotes the trust of users of the services of the Public Accountant, undoubtedly compromises the qualified capacity required by the common good of the profession.
5. Confidentiality
The relationship of the public accountant with the user of its 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 to which it imposes the strictest professional reserve.
6. Compliance with regulatory provisions
The Public Accountant shall carry out his work effectively complying with the professional provisions promulgated by the State and by the Technical Council of Public Accounting applying the appropriate procedures duly established.
In addition, you must observe the recommendations received from your clients or from the competent officials of the entity that requires your services, provided that they are compatible with the principles of integrity, objectivity and independence, as well as with the other principles and ethical standards and formal rules of conduct and action applicable in the circumstances.
7. Competition and professional updating
The Public Accountant should only hire jobs for which he or his associates or collaborators have the necessary skills and suitability so that the committed services are carried out effectively and satisfactorily.
Likewise, the Public Accountant, while remaining in active practice, must consider himself permanently obliged to update the knowledge necessary for his professional performance and especially that required by the common and the imperatives of social progress and common good.
8. Dissemination and collaboration
The Public Accountant has the obligation to contribute, according to his personal possibilities, to the development, improvement and dignity of the profession, both at the institutional level and in any other field that, such as broadcasting or teaching, is available to him.
Whenever he is called to direct institutions for the teaching of Public Accounting or to manage chairs in them, he will submit to the legal and regulatory standards on the subject, as well as to the principles and standards of the profession and professional ethics. This principle of collaboration constitutes the professional social imperative.
9. Respect among colleagues
The Public Accountant must always bear in mind that sincerity, good faith and loyalty towards his colleagues are basic conditions for the free and honest exercise of the profession and for the peaceful, friendly and cordial coexistence of its members.
10. Ethical conduct
The Public Accountant must refrain from carrying out any act that may negatively affect the good reputation or in any way impact the profession's discredit, taking into account that, due to the social function that the exercise of their profession implies, the importance of the task that Society entrusts him as an expert and the search for truth in a completely objective way.
The above basic principles must be applied by the Public Accountant in both the simplest and the most complex work, without exception. In this way, he will contribute to the development of Public Accounting through the daily practice of his profession.
The basic principles of ethics are applicable to all Public Accountants by the mere fact of being one, regardless of the nature of their activity or the specialty they cultivate, both in independent practice or when acting as an official or employee of public or private institutions, as be compatible with its functions.
