Professional Ethics and Code of Conduct
What the exam tests
The IESBA Code as adopted by Kazakhstan professional bodies: fundamental principles, threats, safeguards, independence, confidentiality and responding to non-compliance with laws and regulations.
Core rules
- Fundamental principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.
- Threats: self-interest, self-review, advocacy, familiarity and intimidation.
- Safeguards may be firm-level or engagement-level; for audits, independence in mind and appearance is required.
- Confidentiality is not absolute: disclosure may be permitted or required by law, regulation or professional duty.
- NOCLAR: the accountant should respond appropriately, escalating internally and considering external reporting where permitted.
Worked example
An audit partner's spouse owns shares in an audit client. This is a self-interest threat and a prohibited financial interest for the audit team and immediate family. The safeguard is to dispose of the shares before accepting or continuing the engagement; if disposal is not possible, decline the engagement. By contrast, a trivial gift with no intent to influence may be acceptable, but client hospitality during a tender can create familiarity or intimidation threats.
Traps
Using confidentiality to hide fraud; underestimating familiarity threats from long association; self-review when preparing and auditing the same figures; failing to disclose a conflict; treating safeguards as a substitute for eliminating a prohibited interest.