Logic-based methods: explanation and justification

49 unsubstantiated conclusions, professional judgment shall be used in determining the type of disclosure to be made, if any;

 The type of communication that is expected and to whom it is addressed; and

 Whether the parties to whom the communication is addressed are appropriate recipients.

(e) Professional Behaviour – A professional accountant should act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession. A professional accountant should carry out professional services in accordance with the relevant technical and professional standards and to comply with relevant laws and regulations and avoid any action that discredits the profession.

The principle of professional behaviour imposes an obligation on all professional accountants to comply with relevant laws and regulations and avoid any action that the professional accountant knows or should know may discredit the profession. This includes actions that a reasonable and informed third party, weighing all the specific facts and circumstances available to the professional accountant at that time, would be likely to conclude adversely affects the good reputation of the profession.

In marketing and promoting themselves and their work, professional accountants shall not bring the profession into disrepute. Professional accountants shall be honest and truthful and not:

(a) Make exaggerated claims for the services they are able to offer, the qualifications they possess, or experience they have gained; or

(b) Make disparaging references or unsubstantiated comparisons to the work of others.

50 Table 3.1.1 ANALYSIS OF THE STATEMENTS OF ETHICAL STANDARDS

S/NO SUBJECT MATTER THOSE TO WHOM APPLICABLE

1. Integrity, Objectivity and Independence

Preface – integrity, objectivity, framework, etc.

All Members Introduction – Safeguarding

Objectivity

Section A – Objectivity and Independence and the Audit.

All Members, Practicing Members, Affiliates and employees of practicing Firms.

Section B – Objectivity and independence in financial reporting and similar non-audit roles.

Practicing Members, affiliates and employee of practicing firms.

Section C – Objectivity and independence in professional roles other than covered in sections A& B.

Practicing Members, Affiliates and employees of Practicing firms.

Section D – Definitions All Members

2. Conflicts of Interest Practicing Members, Affiliates and Employees of practicing firms.

3. Confidentiality All members

4. Changes in a professional appointment

Practicing Members, Affiliates and Employees of practicing firms.

5. Consultancy Practicing Members, Affiliates and Employees of practicing firms.

6. Associations with non-members Practicing Members, Affiliates and Employees of practicing firms.

51

7. Fees Practicing Members, Affiliates and Employees of

practicing firms.

8. Obtaining Professional work Practicing Members, Affiliates and Employees of practicing firms.

9. Names and Letterheads of practicing firms

Practicing Members, Affiliates and Employees of practicing firms.

10. Second and other opinions All members

11. Members in business Members in business

12. Enforcement of ethical standards. All members.

These Statements more or less highlight ‘rules’ for ethical conduct, and the section of the code on enforcement of ethical standards and enforcement procedures define the powers of the Institute of Chartered Accountants of Nigeria in ensuring compliance to the rules by its members.

The said section states:

1. The power of the Institute to enforce ethical standards is derived from the ICAN Act 1965 and this power is conferred on the Disciplinary Tribunal, which is independent of the Council.

2. The investigating panel considers complaints against the conduct of members and initiates disciplinary action by referring appropriate cases to the Disciplinary Tribunal.

3. Where the complaint is against a member of a firm having more than one partner, all partners in the firm as at the time of complaint will be jointly and severally held.

4. Where a complaint of misconduct is brought against a member, such a member is required to furnish his defence to the Investigating panel within 14 days of notification by the panel.

5. Where the member fails to respond within this specified time, a first reminder is sent requesting that he sends his defence or reaction within 7 days from the date of receipt of the reminder.

52 6. If the member fails to respond after the first reminder, a formal charge of contempt will be preferred against the member before the Disciplinary tribunal.

7. If the members address cannot be readily obtained, the Panel shall publish the invitation on a National Newspaper after which if there is no response within a reasonable time, it shall be treated as contempt of the Institute and is sanctionable by the Disciplinary Tribunal.

8. The Disciplinary Tribunal is the only body that can determine, subject to the right of appeal, if a complaint of misconduct is proved.

9. From the Accountants’ Disciplinary Tribunal, a member has a right of appeal to the Court of Appeal.

10. If a member of the Institute has been declared guilty of professional misconduct by the Tribunal, the member shall not be eligible to serve on the Institute’s council or any of the Institute’s committees for a period of 5 years from the date of re-admission into membership or studentship.