Curt Verschoor on Ethics

CHAPTER 3PUBLIC AND MANAGEMENT ACCOUNTING ETHICS

Ethical Behavior for Management Accountants

It’s well established that members of the accountancy profession have a responsibility to serve the interests of many stakeholders in society, including those of the general public. For example, the first words of the Handbook of the Code of Ethics for Professional Accountants (Handbook) mention the interests of the public: “A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest.” The Handbook is published annually by the International Ethics Standards Board for Accountants (IESBA), a part of the International Federation of Accountants (IFAC).

IFAC’s broad definition of the public interest in IFAC Policy Position 5 is “the net benefits derived for, and procedural rigor employed on behalf of, all society in relation to any action, decision, or policy.” Because the accountancy profession touches on every aspect of society, the public includes all groups and individuals—consumers, investors, taxpayers, and citizens. According to IFAC, determining whether an action, decision, or policy is in the public interest involves two phases: assessing net benefits (to see if benefits outweigh the costs) and considering whether the issue was evaluated with transparency, public accountability, independence, competence, adherence to due process, and participation of a wide range of societal groups.

IMA Ethics Statement

Management accountants ...