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Survey Evidence:Why Professional Ethics Matters

Professional Ethics

End of the Module

You have completed the Professional Ethics module. The purpose of this module was not only to explain rules, but to strengthen the professional character expected from every learner.

What you have learnt

In this module, you have been introduced to the main ethical responsibilities of accountants and accounting technicians. You have also seen how ethical conduct protects financial information, organisations, clients, employers, and the public.

Meaning of ethics

Ethics helps accountants decide what is right, fair, honest, and responsible in professional situations.

Fundamental principles

You have learnt about integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Threats to ethical conduct

You have learnt how self-interest, self-review, advocacy, familiarity, and intimidation threats may affect judgement.

Safeguards

You have learnt how consultation, review, documentation, disclosure, rotation, and proper controls can reduce ethical threats.

Independence

You have learnt that independence must exist in mind and in appearance, especially in audit and assurance work.

Record retention

You have learnt that records should be complete, secure, accessible, and retained for the required period.

Your responsibility after this module

Ethics is not only for examinations. It should guide how you handle records, money, information, reports, clients, employers, colleagues, and the public.

  • Do not record figures that are not supported by evidence.
  • Do not sign documents that you have not checked.
  • Do not disclose confidential information without proper authority.
  • Do not accept gifts, pressure, or relationships that affect judgement.
  • Do not hide errors, fraud, weak controls, or misleading information.
  • Ask for guidance when you are unsure.
  • Keep proper records and protect them from loss, misuse, or alteration.
Remember: The reputation of an accountant is built over time through honesty, discipline, care, and respect for professional responsibility.

ICPAS is your institute

The Institute of Certified Public Accountants of Somaliland exists to support and strengthen the accounting profession in Somaliland. As a learner, member, or future member, you are part of a profession that depends on trust.

Keep professionalism and ethics as a Muslim first and as an ICPAS member second. Your work should reflect honesty, trustworthiness, fairness, accountability, and respect for the public interest.

Being associated with ICPAS is not only a title. It is a responsibility to protect the name of the profession and to serve society with competence and integrity.

Professional commitment

As you complete this module, carry the following commitments into your studies and work:

  • I will act honestly and avoid misleading records or reports.
  • I will protect confidential information entrusted to me.
  • I will perform my work carefully and ask for guidance when needed.
  • I will avoid conflicts of interest and disclose them when they arise.
  • I will respect the profession and the public interest.
  • I will remember that ethical conduct is part of my responsibility before Allah and before the profession.
Professional Ethics Module

Why Professional Ethics Matters

Survey evidence shows that professional accountants may face pressure to compromise ethical standards. Understanding this pressure helps accountants protect their judgement, their profession, and the public interest.

CCAB Ethics Survey 2021

The CCAB Ethics Survey 2021 was an anonymous informal survey of professional accountants. It was designed to take the ethical temperature of the accountancy profession in the UK and Ireland over the previous three years and as the profession emerged from the COVID-19 pandemic.

The survey received 445 completed responses and more than 300 written comments. Although it was not designed as a rigorous academic study, its findings provide useful insight into the ethical pressures faced by accountants in practice.

More than a quarter of respondents indicated that they had been put under pressure, or felt under pressure, to act in a professionally unethical way.

Key survey findings

27%
had been put under pressure, or felt under pressure, to act in a professionally unethical way.
54%
of those under pressure felt threatened in some way.
6%
reported being offered incentives such as bonuses, promotion, favourable treatment, holidays, or cash.
Source: CCAB Ethics Survey 2021, informal anonymous survey of 445 professional accountants.
Who applied the pressure?
CFO / FD / CEO / Director
28%
Line manager
27%
Client
18%
Board / Cabinet / Council
10%
Source: CCAB Ethics Survey 2021. Percentages show respondents identifying the source of pressure.
How did respondents react?
78% spoke up to prevent being put under pressure.
65% did not carry out the unethical task.
35% carried out the task either fully or partially.
Source: CCAB Ethics Survey 2021. The 35% comprises 10% who carried out the task fully and 25% who carried it out partially.

Examples of ethical pressure reported

The survey showed that ethical pressure can arise in many practical areas of accounting, finance, audit, procurement, and reporting. Common examples included:

  • Excessive optimism in budgets, business cases, cash flow forecasts, and plans.
  • Unreasonably downplaying risks in budgets, business cases, cash flow forecasts, and plans.
  • Categorising personal expenses of employees, directors, or shareholders as company expenses.
  • Getting around local policies, standing orders, financial instructions, or procurement regulations.
  • Altering audit opinions or issuing favourable reports despite weak internal controls.
  • Not obtaining sufficient appropriate audit evidence.
  • Incorrect tax treatment or manipulation of reported performance.
  • Failing to report unethical behaviour by a colleague.
Source: CCAB Ethics Survey 2021, survey findings and respondent comments.

Consequences of ethical pressure

Ethical pressure does not only affect financial statements or reports. It can also affect the accountant personally. The survey found that almost one third of respondents who faced pressure experienced anxiety, stress, or depression.

Some respondents resigned, were removed from their role, faced disciplinary processes, or suffered damage to professional relationships. This shows why ethical culture, support systems, and professional courage are important in accounting practice.

Source: CCAB Ethics Survey 2021.

Other survey evidence

69%
of finance professionals believed their organizations had experienced pressure to act unethically or illegally in the past year.
Source: Institute of Management Accountants and RSM US LLP survey, 2019.
55%
of respondents cited lack of ethics as the main challenge faced by small and medium-sized practices.
Source: IFAC Global SMP Survey, 2019.
82%
of CCAB survey respondents had read their Institute’s Code of Ethics in full or in part during the previous three years.
Source: CCAB Ethics Survey 2021.

Key message

The survey findings show that ethical pressure is real. Professional accountants need more than technical knowledge. They also need ethical awareness, professional judgement, courage, and support when facing pressure.

As you continue this course, think about how the five fundamental principles can guide your decisions when you face pressure, conflict of interest, intimidation, confidentiality concerns, or financial incentives.

References

  1. Consultative Committee of Accountancy Bodies. (2021). CCAB Ethics Survey 2021.
  2. Institute of Management Accountants and RSM US LLP. (2019). Survey on ethical pressure and compliance issues among finance professionals.
  3. International Federation of Accountants. (2019). IFAC Global SMP Survey.
  4. International Ethics Standards Board for Accountants. International Code of Ethics for Professional Accountants, including International Independence Standards.

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