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AN ETHICAL FRAMEWORK

Ethics refers to a system or code of conduct based on moral duties and obligations that indicates how an individual should behave.

Professionalism refers to the conduct, aims, or qualities that characterize or mark a profession or professional person.

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THEORIES OF ETHICAL BEHAVIOR

UtilitarianismRights-based approachJustice-based approach

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THE SIX STAGES OF ETHICAL DEVELOPMENT

I. The individual's actions are judged in terms ofobedience and avoidance of punishment.

II. The individual is aware of others’ needs but is motivated by their own needs.

III. The individual attempts to conform to group norms.IV. The individual is concerned for order in society and

its rules.V. The individual views social contracts and mutual

obligations as important.VI. The individual bases actions on universal moral and

ethical principles that apply to all individuals and groups.

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CODE OF PROFESSIONAL CONDUCT

Principles of Professional Conduct.Rules of Professional Conduct.Interpretations of Rules of Conduct.

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PRINCIPLES OF PROFESSIONAL CONDUCT

Responsibilities.The public interest.Integrity.Objectivity and independence.Due care.Scope and nature of services.

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INDEPENDENCE AND OBJECTIVITY

Independence in fact and in appearanceActivities that would indicate a lack of

independence include: Direct or indirect ownership by member of

member’s family in a client. Economic dependence on a client. Indebtedness to a client. Performance of management functions.

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INTEGRITY AND DUE CARE

Reputation for integrity is very important.

Due care – a level of care or skill that could be expected.

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MAINTENANCE OF THE REPUTAION OF THE PROFESSION

Sustain his or her professional competence. Not become associated with any misleading

documents or misleading representations. Disclose any relationships which might

cause impairment of objectivity. Not act as an advocate for a client. Report to the disciplinary committee any

breaches of the Rules of Conduct by other members.

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OTHER RULES

Confidentiality of information.

Advertising and solicitation.

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QUALITY CONTROL

A system of quality control for a firm encompasses the firm's organizational structure and policies adopted and procedures established to provide the firm with reasonable assurance of conforming with professional standards.

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ELEMENTS OF QUALITY CONTROL

ClientsIndependence and objectivity.Personnel management - hiring.Engagement procedures – engagement letter.Practice administration – firm name.Quality control review program – internal review.

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MONITORING QUALITY CONTROL

Practice inspection.Self-monitoring.