by The International Federation of Accountants (IFAC) is a global organization representing the accounting profession. IFAC establishes and promotes international standards, and speaks for the profession on public policy issues. According to the IFAC website, the group serves the public interest through advocacy, development, and support for our member organizations and the more than 3 million accountants who are crucial to our global economy.
Many elements of this work program are still relevant today.
- Develop statements which serve as guidelines for international and auditing guidelines
- Establish the basic principles which should be included in the code of ethics of any member body of IFAC and to refine or elaborate on such principles as deemed appropriate
- Determine the requirements and develop programs or the professional education and training of accountant
- Collect, analyze, research, and disseminated information on the management of public accounting practices to assist practitioners in more effectively conducting their practices
- Evaluate, develop, and report on financial management and other management techniques and procedures
- Undertake other studies of value to accountants, such as a possible study on the legal liabilities of auditors
- Foster closer relationships with users of financial statements including preparers, trade unions, financial institutions, industry, governments, and others
- Maintain good relations with regional organizations and explore the potential for establishing other regional organizations, as well as assisting in their organizations and development
- Establish regular communications among the members of IFAC and other interested organizations, principally through an IFAC Newsletter
- Organize and promote the exchange of technical information, educational materials and professional publications, and other literature emanating from member bodies
- Organize and conduct an international congress of accountants approximately every five years
- Seek to expand the membership of IFAC
Confidentiality of Information
Accountants see the good, the bad and the ugly of a company or a person’s financial situation. Clients have a right to know that this information is kept in the strictest of confidentiality and is only shared with other professionals if consultation is required to address a specific problem. Failure to keep information confidential could result in bad publicity and possible defamation of a company or person. It could also open the door to fraud, identity theft, and other illegal activities if the information is shared with the wrong parties.
Professional Skill and Competence
Accounting is a detail-oriented career that requires knowledge and skills to do the job correctly. Mistakes lead to problems with investors, business partners, finance lenders and the Internal Revenue Service. It is imperative that anyone working at any level in accounting understands what is required of the job and how to execute it properly.
Independence and Objectivity
Most accountants are partnered or licensed to advise clients on investing and financial services. It is important that accountants maintain a fiduciary responsibility, seeking an objective solution, and providing advice based on that objectivity. It has been a rampant problem in the financial services industry that products were recommended to clients simply because they provided the highest compensation to the adviser. Accountants must be objective with independent viewpoints, especially since they are dealing with the financial details of the company.
Honesty and Integrity Standards
Integrity covers a lot of different ethical standards that include honesty and professional conduct in all circumstances. An accountant should always present the facts objectively and refrain from slanting information in a misleading way. An accountant who doesn’t demonstrate a high level of integrity isn’t trustworthy and loses the confidence of clients.
Professionalism and Demeanor
Professionalism is a standard that goes beyond the office. Whether at a networking event or a party, maintaining a professional demeanor is good business. Accountants should be law-abiding citizens who don’t have bad habits, such as gambling, that could put them in a risky position to compromise client information. No one trusts an accountant who gets drunk at a party and starts spouting off information that probably is bound by confidentiality standards.
