Section 100: Complying with the Code

General

100.1 A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest. 100.2 Confidence in the accountancy profession is a reason why businesses, governments and other organizations involve chartered accountants in a broad range of areas, including financial and corporate reporting, assurance and other professional activities.

Accountants

understand and acknowledge that such confidence is based on the skills and values that accountants bring to the professional activities they undertake, including:

(a)

Adherence to ethical principles and professional standards;

(b)

Use of business acumen;

(c)

Application of expertise on technical and other matters; and

(d)

Exercise of professional judgment.

The application of these skills and values enables

accountants to provide advice or other output that meets the purpose for which it was provided, and which can be relied upon by the intended users of such output. 100.3 The Code sets out high quality standards of ethical behaviour expected of chartered accountants. The Code should also be used or adopted by the firms in developing their ethics and independence policies. 100.4 The Code establishes five fundamental principles to be complied with by all chartered accountants. It also includes a conceptual framework that sets out the approach to be taken to identify, evaluate and address threats to compliance with those fundamental principles and, for audits and other assurance engagements, threats to independence. The Code also applies the fundamental principles and the conceptual framework to a range of facts and circumstances that accountants might encounter, whether in service or in practice.