Professional standards and conduct

Professional work is not only a matter of technical knowledge. It also requires a framework for conduct, judgement and responsibility. For members and member firms, the Malaysian Institute of Accountants (MIA) By-Laws (On Professional Ethics, Conduct and Practice) set that framework.

The fundamental principles

Section 110 of the MIA By-Laws identifies five fundamental principles. They are relevant because they frame how a professional accountant approaches information, judgement and relationships in professional work.

• Integrity — being straightforward and honest in professional and business relationships.
• Objectivity — exercising professional judgement without being compromised by bias, conflicts of interest or undue influence.
• Professional competence and due care — maintaining appropriate knowledge and skill, and acting diligently in accordance with applicable standards.
• Confidentiality — respecting information acquired through professional and business relationships, subject to applicable rights or duties to disclose.
• Professional behaviour — complying with relevant laws and regulations and avoiding conduct that may discredit the profession.

Applying the framework to a real situation

The By-Laws do not treat ethical conduct as a fixed checklist. Their conceptual framework requires a professional accountant to identify threats to compliance with the fundamental principles, evaluate their significance and address them where necessary.

That is why a professional may need to clarify facts, consider a relationship or interest, define the scope of an instruction, request further information or decide that a proposed course cannot be taken. The appropriate response depends on the circumstances and on the requirements that apply to the work.

Why this matters to clients and other readers

Clear information at the outset helps a matter be considered properly. The relevant background, the period involved, the intended use of any work, significant relationships and the available records can all affect how an instruction is assessed.

The framework does not remove the need for professional judgement, nor does it determine the answer to every matter in advance. It provides a disciplined basis for considering the facts and the applicable requirements.

Further information

This page is a general overview. Readers may consult the MIA By-Laws for the current source material. For a discussion about a particular matter, please contact Saifudin & Co; any engagement and its scope must be considered separately.