Explain the ethical responsibilities of a professional accountant both as an employee and as a professional.

Ethical responsibilities of a professional accountant

A professional accountant has two ‘directions’ of responsibility: one to his or her employer and another to the highest standards of professionalism.

Responsibilities to employer

1. An accountant’s responsibilities to his or her employer extend to acting with diligence, probity and with the highest standards of care in all situations. 
2. In addition, however, an employer might reasonably expect the accountant to observe employee confidentiality as far as possible. In most situations, this will extend to absolute discretion of all sensitive matters both during and after the period of employment. 
3. The responsibilities also include the expectation that the accountant will act in shareholders’ interests as far as possible and that he or she will show loyalty within the bounds of legal and ethical good practice.

Responsibilities as a professional

In addition to an accountant’s responsibilities to his or her employer, there is a further set of expectations arising from his or her membership of the accounting profession. 

1. In the first instance, professional accountants are expected to observe the letter and spirit of the law in detail and of professional ethical codes where applicable (depending on country of residence, qualifying body, etc.). 
2. In any professional or ethical situation where codes do not clearly apply, a professional accountant should apply ‘principles-based’ ethical standards (such as integrity and probity) such that they would be happy to account for their behavior if so required. 
3. Finally, and in common with members of other professions, accountants are required to act in the public interest that may, in extremis, involve reporting an errant employer to the relevant authorities.