International Code of Ethics for Professional

Accountants

International Ethics Standards Board for Accountants

(IESBA): R. E. 2023

Mwamba Ally Jingu

The International Federation of Accountants (IFAC) is a
global organization representing the accounting
profession.
IFAC establishes and promotes international standards,
and speaks for the profession on public policy issues.
IFAC comprises more than 175 member and associate
organizations in 130 countries and jurisdictions,
representing nearly 3 million professional accountants.
Member organizations of IFAC include the National Board
of Accountants and Auditors (NBAA) Tanzania
 International Code of Ethics for Professional
Accountants (Code)
IFAC's International Ethics Standards Board for
Accountants (IESBA) maintains the international Code of
Ethics for Professional Accountants
The Code sets out fundamental principles of ethics for
professional accountants,
The principles reflect the profession’s recognition of its
“public interest” responsibility.
These principles establish the standard of behavior
expected of an accountant.
The fundamental principles are:
integrity,
objectivity,
professional competence and due care,
confidentiality, and
professional behavior.
The Code requires professional accountants to comply
with the fundamental principles of ethics
There are five fundamental principles of ethics for
professional accountants:
(a) Integrity – to be straightforward and honest in all
professional and business relationships.
(b) Objectivity – to exercise professional or business
judgment without being compromised by:
(i) Bias;
(ii) Conflict of interest; or
(iii) Undue influence of, or undue reliance on, individuals,
organizations, technology or other factors.
(c) Professional Competence and Due Care
– to:
(i) Attain and maintain
• “professional knowledge and skill”
at the level required to ensure that receives competent
professional service, based on current technical and
professional standards and relevant legislation; and
(ii) Act diligently and in accordance with applicable
technical and professional standards.
(d) Confidentiality
– to respect the confidentiality of information acquired as
a result of professional and business relationships.
(e) Professional Behavior
– to:
(i) Comply with relevant laws and regulations;
(ii) Behave in a manner consistent with the profession’s
responsibility to act in the public interest in all professional
activities and business relationships; and
(iii) Avoid any conduct that the professional accountant
knows or should know might discredit the profession
A professional accountant shall comply with each of the
fundamental principles.
 INTEGRITY
A professional accountant shall comply with the principle of
integrity, which requires an accountant 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,
Acting appropriately involves:
(a) Standing one’s ground when confronted by dilemmas
and difficult situations; or
(b) Challenging others as and when circumstances warrant,
in a manner appropriate to the circumstances
A professional accountant shall not knowingly be
associated with reports, returns, communications or other
information where the accountant believes that the
information:
(a) Contains a materially false or misleading statement;
(b) Contains statements or information provided recklessly
(carelessly); or
(c) Omits or obscures (vague) required information where
such omission or obscurity would be misleading
When a professional accountant becomes aware of
having been associated with information described above,
the accountant shall take steps to be disassociated from
that information
 OBJECTIVITY
A professional accountant shall comply with the principle
of objectivity, which requires an accountant to exercise
professional or business judgment without being
compromised by:
(a) Bias;
(b) Conflict of interest; or
(c) Undue (excessive) influence of individuals or entities
or undue reliance on, individuals or entities
PROFESSIONAL COMPETENCE AND DUE CARE
A professional accountant shall comply with the principle of
professional competence and due care, which requires an
accountant to:
(a) Attain and maintain professional knowledge and skill at
the level required to ensure that:
̶ a client receives competent professional service, based
on current technical and professional standards and
relevant legislation; and
(b) Act diligently and in accordance with applicable
technical and professional standards.
Serving clients with professional competence needs:
̶ the exercise of sound judgment in applying professional
knowledge and skill when undertaking professional
activities.
Maintaining professional competence requires:
a continuing awareness and an understanding of relevant
technical, professional, business and technology-related
developments.
Continuing professional development enables a
professional accountant to:
̶ develop and maintain the capabilities to perform
competently within the professional environment .
Diligence encompasses the responsibility to act in
accordance with the requirements of an assignment,
̶ carefully,
̶ thoroughly and
̶ on a timely basis.
In complying with the principle of professional competence
and due care, a professional accountant shall:
̶ take reasonable steps to ensure that those working in a
professional capacity under the accountant’s authority have
appropriate training and supervision.
̶ a professional accountant shall make client or other
users of the accountant’s professional services or activities
aware of the limitations inherent in the services or
 CONFIDENTIALITY
A professional accountant shall comply with the principle of
confidentiality, which requires:
an accountant to respect the confidentiality of information
acquired as a result of professional and business
relationships.
An accountant shall:
(a) Be alert to the possibility of:
inadvertent disclosure, including in a social environment,
and particularly to a close business associate or an
immediate or a close family member;
(b) Maintain confidentiality of information within the client;
(c) Maintain confidentiality of information disclosed by a
prospective client or employing organization;
(d) Not disclose confidential information acquired as a result
of professional and business relationships outside the client
without proper and specific authority,
• unless there is a legal or professional duty or right to
disclose;
(e) Not use confidential information acquired as a result of
business relationships for the personal advantage of the
accountant or for the advantage of a third party;
(c) Maintain confidentiality of information disclosed by a
prospective client or employing organization;
(d) Not disclose confidential information: acquired as a
result of professional and business relationships outside the
firm without proper and specific authority,
unless there is a legal or professional duty or right to
disclose;
(e) Not use confidential information acquired as a result of
professional and business relationships for:
the personal advantage of the accountant or for the
advantage of a third party;
(f) Not use or disclose any confidential information, either
acquired or received as a result of a professional or
business relationship;
̶ after that relationship has ended; and
(g) Take reasonable steps to ensure that; personnel under
his or her control respect the accountant’s duty of
confidentiality

Disclosure of Confidential Information

Nevertheless, the following are circumstances where
professional accountants are or might be required to
disclose confidential information or when such disclosure
might be appropriate:
(a) Disclosure is required by law, for example:
(i) Production of documents or other provision of evidence
in the course of legal proceedings; or
(ii) Disclosure to the appropriate public authorities of
infringements of the law that come to light;
(b) Disclosure is permitted by law and is authorized by the
client or the employing organization; and
There is a professional duty or right to disclose, when
not prohibited by law:
(i) To comply with the quality review of a professional body
(ii) To respond to an inquiry or investigation by a
professional or regulatory body such as the NBAA-T
iii) To protect the professional interests of a professional
accountant in legal proceedings; or
(iv) To comply with technical and professional standards,
including ethics requirements.
In deciding whether to disclose confidential information,
factors to consider, depending on the circumstances,
include:
• Whether the interests of any parties, including third
parties whose interests might be affected,
• could be harmed if the client consents to the disclosure
of information by the professional accountant.
A professional accountant shall continue to comply with
the principle of confidentiality;
even after the end of the relationship between the
accountant and a client or employing organization.
When changing employment or acquiring a new client;
the accountant is entitled to use prior experience but shall
not;
use or disclose any confidential information acquired or
received as a result of a professional or business
relationship
 PROFESSIONAL BEHAVIOR
A professional accountant shall comply with the principle of
professional behavior, which requires an accountant to:
(a) Comply with relevant laws and regulations;
(b) Behave in a manner consistent with the profession’s
responsibility to act in the public interest in all professional
activities and business relationships; and
(c) Avoid any conduct that the accountant knows or should
know might discredit the profession.
An accountant should not knowingly engage in any
business, occupation or activity that impairs or might impair
the integrity, objectivity or good reputation of the profession.
Conduct that might discredit the profession includes
conduct that a reasonable and informed third party would
be likely to conclude adversely on the good reputation of
the profession.
When undertaking marketing or promotional activities, an
Accountant sh not bring the profession into disrepute. He or
she should be honest and truthful and should not make:
exaggerated claims for the services offered by, or the
qualifications or experience of, the accountant;
 The NBAA and Professional Ethics
The National Board of Auditors and Accountants (NBAA)
was established under the Auditors and Accountants
(Registration) Act No. 33 of 1972.
The board operates under the supervision of the Ministry
responsible for Finance
The NBAA is mandated by the Act to regulate the activities
and conduct of accountants and auditors in Tanzania,
including
(i) Establishing Initial Professional Development (IPD) and
Continuing Professional Development (CPD) and ethical
requirements;
(ii) conducting examinations and granting qualifications of
the Board for accounting and auditing;
(iii) maintaining registers of accountants and auditors;
(iv) operating a quality assurance review system and an
investigative and disciplinary system; and
(v) setting accounting and auditing standards.
Membership of NBAA is mandatory to offer public
accountancy services in the jurisdiction while Accounting
Technicians may voluntarily join
In addition to being a Member of IFAC, the NBAA is also a
founding member of the Pan African Federation of
Accountants
In 2004, the NBAA, adopted the International Standards of
Auditing (ISA) without modifications;
since then it has adopt all subsequent revisions to ISA
without modifications and including effective date.
Accordingly, the NBAA focuses its efforts on supporting its
members’ implementation of the standards.
The NBAA has introduced two mandatory training sessions
per year for auditors in addition to other CPD seminars on
audit standards and issues.
Additionally, the NBAA reviews its syllabus and,
subsequently examinations, to ensure that new and existing
ISA are incorporated.
he Auditors and Accountants Registration Act permits the
NBAA to set ethical standards for professional accountants.
The NBAA has adopted the IESBA Code of Ethics without
modifications and any revisions to the Code are
automatically adopted.
The NBAA ensures that the professional ethics are given
due consideration in initial and continuing professional
development.
Ethical requirements are addressed by training institutions
and in final assessments of NBAA’s
Foundational level, Accounting Technician level, and
Professional level examinations,
 NBAA REGISTRATION STATUS
After attaining a Certified Public Accountant (CPA)
professional degree a person shall be registered by
the NBAA (T) as a Graduate Accountant (GA).
Such person shall then have to work for a minimum
of three (3) years before being registered as an
Associate Certified Public Accountant (ACPA).
Teaching is not recognized as practicing accounting
After becoming an ACPA he or she shall have to work
for at least seven (7) years before being registered as
a Fellow Certified Public Accountant (FCPA).
There are a number of conditions that such person will be
required to fulfill before being registered as an ACPA or a
FCPA.
These conditions include: (i) attending Continued
Professional Education (CPE) Programmes
(ii) during application for such a registration status the
applicants should be endorsed by two authoritative persons
about the applicant’s integrity, diligence and professional
bahaviour.
Attaining the FCPA status means that a person is
recognized as an expert in his or her field. FCPAs are
renowned worldwide as having gained the highest
experience in the field of accounting and finance
 Auditors need to possess a minimum
educational training and some experience
There is a certain amount of training and certification
needed before a person becomes an auditor who is also
referred to as Certified Public Accountants(CPA) In Public
Practice (CPA—PP) in several countries.
In Tanzania a person must pass CPA) professional degree
exam, which is managed by the NBAA (T) or its equivalent
before he or she can be registered as a CPA -PP .
The equivalent training qualifications include: ACCA (UK),
CA (UK), RIA (Canada) and others
Furthermore, such person must have had at least
three (3) years post-CPA experience under the
supervision of a CPA-PP, or
hold a practicing certificate from recognized
profession.
prior to registration as a CPA-PP, the applicant should
be endorsed by three referees including: his or her
employer and Two others of whom must be registered
as CPA- PP with the NBAA (T).
The referees should know the applicant professionally,
and should be able to vouch from personal knowledge
of the applicant's accounting/auditing experience and
character
Apart from a CPA qualification and a post qualification
experience of three years, all CPA-PP must undergo a
mandatory scheme of continuing professional education
(CPE) Scheme of at least 40 hours per year.
The objective of the scheme is to update and expand their
knowledge to maintain high standards demanded of a
modern professional accountant.
The NBAA may impose disciplinary proceedings or
sanctions against its members for non-compliance with the
CPE requirements.
Asanteni kwa kuelewa