Code of Professional Ethics in AAT
All members of AAT have to follow the Code of ethics consisting of the "Five Fundamental Principles". To become an AAT member, join the AAT courses at the KBM, which is approved training provider from the AAT to deliver their accounting and finance qualifications.
Membership of the AAT is more than a qualification. AAT is the license, which is well-recognised and has high respect through a broad range of businesses. Suppose anyone wanting to maintain an excellent reputation in providing high-quality training. In that case, there is need for AAT members to have a professional approach which should have evidence in their lives, explains AAT exception in quality training, high standards, and the professionalism of members which is top-notch always. AAT has advantages to its members as an Association and all of AAT members. To help the AAT members uphold these standards and offer the highest levels of professionalism at all times. We have decided to publish the AAT Codes of Professional Ethics. These codes are the set of fundamental ethical principles with supporting guidance.
KBM is happy to explain "AAT Codes of Professional Ethics" through the following aspects:
- Outline of the Code
- IFAC Board's Contribution
- Five Fundamental Principles
Outline of the Code
The Code summarises the required Standards of Professional Behaviour along with the guidance to assist you to:
- on the protection of the public interests
- to maintaining a good reputation of the AAT
It is basing upon the Code of Ethics for "Professional Accountants" possessing licence from the International Ethics Standards Board for Accountants (IESBA). The commencement of the IESBA was on January 1st, 2011. However, this Code has several revisions of the AAT for a full member of IFAC. The mission statement of IFAC given in the constitution is "the worldwide growth and development of an accountancy profession with harmonised standards and of course, provides very high-quality services to the public".
Contribution of IFAC Board
To achieve this mission; the IFAC Board has established IESBA to develop high quality and issue its high-quality authority ethic and standard and pronouncements for the members for use around the Globe. The IESBCA Code of Ethics on which this Code establish ethical requirements for IFAC members.
According to the IESBA Code, the Code emulates a principles-based approach, which does not include situations where members meet ethical issues, professional, stating a way in which they need to respond. Besides, it gives preference to a value system to focus on essential professional and ethical principles; these are the core reasons for an appropriate Code. They must follow to the Codes in supplementing this. The Code also provides detailed guidance and help that is significant to the members of AAT to observe that various basic principles in "true letter and spirit" in all of their professional doings.
Five Fundamental Principles
This Code is a set of the "Five Fundamental Principles" which members must need to adopt:
- Objectivity
- Integrity
- Professional competence and due care
- Professional behaviour.
- Confidentiality
These principles make a framework which members need to follow; this will help them in the identification and tackling threats to compliance with the fundamental laws and respond to them appropriately. The Code is in three parts:
- Part A applies to all members
- Part B represents additional guidance, which refers explicitly to the licensed members
- Part C applies expressly to the members who are in business.
The acceptance of responsibilities to act in the public interest is a distinguishing mark of the accounting career. This Code reveals through the three main sections. It generates experiments that establish the Code of fundamental principles of professional ethics and set a conceptual framework for applying such principles. The theoretical framework includes guidance on fundamental ethical principles for the use of members. This policy framework allows members to identify threats on compliance with the fundamental laws and to evaluate the significance. If these risks are not significant, then there is need to apply specific measures to eliminate not to compromise the underlying principles.
Parts B and Part C reflect how the conceptual framework is applicable in specific scenarios and situation. They include examples of safeguarding that is ideal for addressing threats to compliance with the fundamental principles as they describe situations where safeguarding is not available to handle the risks. Indeed, it needs to avoid the dangers of the activities and relationship. Part B applies to the members holding licensed. Part C refers to the members of the business. In specific situations, the authorised members may also find this relevant.
Fundamental principles
A member will have to comply with the fundamental principles, which are:
- Objectivity: Must use objectivity and not allow bias, conflict of interest of others to dominate professional and business judgments.
- Integrity: Has to be honest and open in all business and professional relationships.
- Professional competence and due care: As a professional, all you need to essentially is to ensure our full expert skills and knowledge the level required to assure that an employer or a client receives perfect professional service in line with the current practice, developments and techniques. When providing professional service, a member should have to act diligently with the proper application of technical and professional ethical standards.
- Professional behaviour: It demands compliance with the relevant laws and regulations and to avoid any action that dishonours the profession and its ethics.
- Confidentiality: it means to act in line with the law and regulation, must respect the trusting on the received information because of professional, and business relationships. Should not disclose any information to third parties before a prime and appropriate authority unless someone has his duty to disclose or have the legal or professional right. They acquired the confidential information because of such, professional and business relationships, and they shall not use the personal advantage for the third parties or its member.