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PROFESSIONAL
RESPONSIBILITIES

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Part Seven

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CHAPTER 19
ETHICS, PROFESSIONAL
CONDUCT AND QUALITY
CONTROL

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Chapter 19

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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

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Utilitarianism
Rights-based approach
Justice-based approach

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THE SIX STAGES OF ETHICAL

DEVELOPMENT
I.

The individual's actions are judged in terms of

obedience 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

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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 appearance

Activities that would indicate a lack of independence
include:
Direct or indirect ownership by member of
members 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

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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

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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

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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

Clients
Independence 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.

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