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Trying to apply a single code of ethics may result in a code that is too broad to be useful[1].
Professions have several characteristics in common--a complex body of knowledge, standards of admission to the profession, and a need for public confidence. To guide the conduct of their members and demonstrate a dedication to serve the public's interest, all recognized professions have established codes of professional ethics.
In July 1990, the International Federation of Accountants issued its Guidelines on Ethics for Professional Accountants[2]. Its stated purpose is to support the objectives of the accounting profession "to work to the highest standards of professionalism, to attain the highest level of performance, and generally meet the public interest". The IFAC Guidelines is typical of professional codes of conduct of the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), Institute of Management Accountants (IMA), the EDP Auditors Association, and others. They normally include:
* a statement mandating technical proficiency;
* a list of responsibilities to management or clients;
* a description of etiquette in dealing with auditees, clients, and colleagues; and
* a characterization of an individual's responsibilities to the profession and society[3].
Normally, the path to a more ethical work environment consists of several steps. The first is the establishment of a code of conduct, a corporate ethics committee, and a policy empowering the internal audit group to include checking for compliance with the code as part of its responsibility. The second step is continuous training in how to deal with ethical dilemmas. The third and most significant step is a willingness to accept responsibility for one's behaviour[4]. The codes of ethics of the IFAC, AICPA, IIA, IMA and EDPAA are in consonance with such steps which set forth principles in the practice of financial accounting, managerial accounting, internal and external auditing, and charge their members to maintain high standards of conduct. They demand commitment to honourable behaviour, even at the sacrifice of personal advantage.
A code of ethics also establishes high standards against which individuals can measure their own performance and communicate to those outside the organization the value system from which the organization's members must not be asked to deviate. Certified Internal Auditors (CIAs), Certified Public Accountants (CPAs), Certified Management...