Principles-based approach to give members control.
By Martin Nimmo, head of policy and plans, professional standards, CIMA.
Subject to Council approval, CIMA expects to announce its new code of ethics which will apply to all members and students from 1 January 2006. It is based on the recently announced IFAC code of ethics. IFAC's emphasis on professional accountants in business recognises that they have become a major focus of attention worldwide. For the first time CIMA's code will include a section on public accountants in business.
The code enables members to see what the real threats are and proposes means of safeguarding against them. This principles-based framework approach (as opposed to the more traditional rule-based approach) is felt to be an advance as it gives control to members and part qualifieds.
The aim of the CIMA syllabus and practical experience requirements is to equip you with the skills and knowledge to undertake tasks appropriate to your level of seniority. This is true whether you are a member or part qualified student. CIMA professional development is there to enable you to match your skills to the job you are required, or aspire, to do. That is why you are the best person to assemble your own personal CPD programme.
It is fundamental to working as a CIMA member or student that you should only undertake tasks for which you have, or can obtain, sufficient specific training or experience. The code of ethics says that “a professional accountant in business should not intentionally mislead an employer as to the level of expertise or experience possessed, nor should a professional accountant in business fail to seek appropriate expert advice and assistance when required."
The new code outlines circumstances that might threaten your ability to perform duties with the right level of competence and care. These include:
These are all beyond your control, but are possible to remedy with the right safeguards. The significance of such threats will depend on factors such as the extent to which you are working with others, your relative seniority in the business and the level of supervision and review applied to the work.
The significance of the threats should be evaluated. If they are significant, safeguards should be used to eliminate them or reduce them to an acceptable level. Safeguards that may be considered include:
Some of these safeguards may simply not be possible, but it is vital to signal a major problem as quickly as possible to your manager. The person with the necessary expertise may not exist within your organisation, but a management accountant in practice might be able to assist. Where threats cannot be eliminated or reduced to an acceptable level, you should consider whether to refuse to perform the duties in question. If you refuse to perform the duties, you should communicate clearly the reasons for doing so.
What problems do you face if you try to go beyond your expertise? At the very least a reprimand, possibly dismissal, and a complaint to CIMA’s Conduct Department. Your career prospects will almost certainly be harmed. If in doubt as to the action you should take, and if the current ethical guidelines or (from January) new CIMA code of ethics do not seem to provide a way forward, please contact the CIMA ethics manager, Danielle Cohen, on +44 (0) 20 8849 2318. Her job is to help you to arrive at a decision on the action you need to take, not to make that decision for you. You are in control of your own destiny.
August 2005
