After experience a series financial scandals, the International Ethics Standards Board for Accountants (IESBA) issued a rewritten Code of Ethics for Professional Accountants in June 2005. The particular changing on new Code is addressing auditor’s independence. To establish a conceptual framework to make sure all professional accountants will act compliance with the five fundamental principles of ethics:
2-5-1 Integrity—A professional accountant should be having strong moral principles and honest in all professional and business relationships (IESBA Code of Ethics 110.1).
2-5-2 Objectivity—A professional accountant should act in fairness, unbiased or independent from others perceptions to maintain professional or business judgments (IESBA Code of Ethics 120.1).
2-5-3 Professional Competence and Due Care— To ensure customers received competent professional services, it is required a professional accountant can provide professional knowledge and skill at the related. A professional accountant should follow applicable technical and professional standards to act diligently when providing professional services (IESBA Code of Ethics 130.1).
2-5-4 Confidentiality—A professional accountant should respect client organizational and business information as required that information should not disclose to any third parties without client proper authority unless there is a legal or professional right or duty to disclose. A professional accountant should not take advantages of confidential information to gain personal financial interest or other benefits (IESBA Code of Ethics 140.1).
2-5-5 Professional Behavior—A professional accountant should act comply with relevant laws and regulations requirements and should avoid any dishonest and untruthful action (IESBA Code of Ethics 150.1).