All ICAEW Chartered Accountants are bound by ICAEW’s Code of Ethics, which is based on five fundamental principles: integrity, objectivity, professional competence and due care, confidentially and professional behaviour.
Supporting the Code
This document is no substitute for reading the revised ICAEW Code of Ethics in full. It is your professional responsibility to familiarise yourself thoroughly with the Code when it is published in March 2025.
ICAEW's Code of Ethics applies to all members, students, affiliates, employees of member firms and, where applicable, member firms, in all their professional and business activities.
At the heart of the Code are the five fundamental principles and the conceptual framework. The principles establish the standards of behaviour that ICAEW requires from professional accountants; and the conceptual framework outlines the approach that accountants have to take to comply with the principles, including by assessing potential threats and putting safeguards in place to address such threats.
The Code provides a comprehensive breakdown of the principles, here we provide an overview of each of the five fundamental principles.
1) Integrity
To be straightforward and honest in all professional and business relationships.
Integrity involves fair dealing, truthfulness and having the strength of character to act appropriately, even when facing pressure to do otherwise or when doing so might create potential adverse consequences.
Acting appropriately involves standing one’s ground when confronted by dilemmas and difficult situations; or challenging others as and when circumstances warrant.
A professional accountant shall not knowingly be associated with information that contains materially false or misleading statements, statements or information that have been provided recklessly, or those that omit or obscure required information.
2) Objectivity
To exercise professional or business judgement without being compromised by:
- bias,
- conflict of interest, or
- undue influence or reliance on individuals, organisations, technology or other factors.
Objectivity is the state of mind which has regard to all considerations relevant to the task in hand but no other.
A professional accountant shall not undertake a professional activity if a circumstance or relationship unduly influences their professional judgment regarding that activity.
3) Professional competency and due care
To attain and maintain professional knowledge and skill at the level required to ensure that a client or employing organisation receives competent professional service, based on current technical and professional standards and relevant legislation.
To act diligently and in accordance with applicable technical and professional standards.
Serving clients and employing organisations with professional competence involves the exercise of sound judgment in applying professional knowledge and skills.
The knowledge and skills necessary for a professional activity vary depending on the nature of the activity being undertaken. Maintaining professional competence requires having a continuing awareness and understanding of technical, professional, business and technology related developments that are relevant to the activity being undertaken.
Continuing professional development (CPD) enables an accountant to develop and maintain the capabilities to perform competently. Complying with this principle also requires taking reasonable steps to ensure that others working under the authority of the professional accountant, have appropriate training and supervision.
4) Confidentiality
To respect the confidentiality of information acquired as a result of professional and business relationships.
Professional accountants must not only keep information confidential, but must also take appropriate action to protect the confidentiality of information during its
- collection,
- use,
- transfer,
- storage or retention,
- dissemination, and
- lawful destruction.
A safe and proper approach for professional accountants to adopt is to assume that all unpublished information about a client’s or employer’s affairs, however gained, is confidential.
Confidentiality extends not only to clients, past and present, but also to third parties from or about whom information has been received in confidence.
Professional accountants must also take reasonable steps to ensure that personnel under their control, and any individuals from whom advice and assistance are obtained, also comply with the duty of confidentiality.
5) Professional behaviour
To comply with relevant laws and regulations and behave in a manner consistent with the profession’s responsibility to act in the public interest in all professional activities and business relationships.
To avoid any conduct that the professional accountant knows or should know might discredit the profession.
A professional accountant shall not knowingly engage in any business, occupation or activity that impairs or might impair the integrity, objectivity or good reputation of the profession, and as a result would be incompatible with the fundamental principles.
Conduct that might discredit the profession includes conduct that a reasonable and informed third party would be likely to conclude adversely affects the good reputation of the profession.
A reasonable and informed third party would expect that a professional accountant, in their professional life treats others fairly, with respect and dignity and, for example, does not bully, harass, victimise or unfairly discriminate against others.
More on the fundamental principles
ICAEW’s Code of Ethics outlines each of the five fundamental principles in full.
Leading the way on ethics
ICAEW pioneered the principles-based threats and safeguards approach to ethics. This approach has now been adopted by IFAC (the International Federation of Accountants, of which ICAEW is a member body).
See the latest developments see icaew.com/ethics.
ICAEW Code of Ethics
The Code helps our members meet these obligations by providing them with ethical guidance.
More informationMore support on ethics
Resources
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