Clients accountants have the right to expect minimum standards of ethical conduct –know as the fundamental principles of professional ethics. This consists of integrity, objectivity, professional competence and due care and professional behaviour at all times. US lawmakers have accused Goldman executives of helping to inflate the housing bubble and making billions off the market’s collapse. Goldman Sachs has denied any unethical behaviour, stating that they cannot be held responsible because it was a matter of judgment. However, as public opinion holds the bank accountable, minimum standards have clearly been compromised and attempts to justify their actions undermines public confidence.
By introducing a new ethics unit at the Level 3 Diploma in Accounting, AAT is setting students on the right track to manage their own moral dilemmas. Qualified accountants are technically adept and accurate – skills that are straightforward and without question. But softer skills come into play when faced with an ethical dilemma, because they are based on personal judgment in which there is often no right answer. The issue of ethics is pervasive across all areas of accountancy, yet the specifics of ethical dilemmas will differ depending on how the individual is employed.
A common scenario may involve a self-employed member in practice, who is contacted by a solicitor requesting information on a company’s accounts. Trust between an accountant and client is fundamental to ethical conduct, so the matter of client confidentiality can be confusing. Another typical dilemma could involve a married couple who run a company together, eventually split acrimoniously and go on to demand that the other cannot see the accounts. This situation could cause a significant ethical dilemma for the accountant who has to weigh the potential for conflict of interest and breach of confidentiality between parties with whom they might have had a harmonious relationship in the past.
The AAT’s Conduct and Compliance team are on hand to support and guide members on issues of ethics, although we will not give a definitive ‘yes or no’ answer. Instead, we aim to supply accountants with the tools to make the decisions themselves. Since more than one outcome might be possible, we work with them to determine the most ethical way forward.
As the UK emerges from recession, it is clear that the unethical behaviour of those responsible for the economic downturn will continue to be scrutinised. As for the accounting profession: these cases should serve to reinforce the potential consequences of immoral conduct.
Tania Hayes has been Conduct & Compliance Manager at the AAT for 18 months. She oversees conduct and compliance issues, the disciplinary process and professional ethics guidance. She also acts as Money Laundering Reporting Officer, overseeing money laundering supervisory responsibilities.
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