The Ethical Foundation
Integrity and Public Trust
At the heart of every Chartered Accountant is a commitment to integrity, independence, and the public interest.
Ethics is not an optional extra — it is the framework that ensures the quality and credibility of every audit and financial statement review. The APES 110 Code of Ethics for Professional Accountants (including Independence Standards) sets out these principles and forms part of Australian law and professional practice requirements.
The Code requires that professional accountants act with objectivity, professional competence, due care, and confidentiality. These principles provide confidence that financial statements are prepared, reviewed, and audited without bias or influence — vital in the not-for-profit and community sectors, where trust underpins every committee decision.
Why Independence Matters
The Code prohibits auditors from engaging in activities that could impair independence or create conflicts of interest.
This includes bookkeeping, tax planning, valuation, IT systems design, internal audit, or corporate finance services for an audit client. Even where such services appear minor, they can create a self-review threat — where an auditor is asked to assess their own work.
These prohibitions exist to protect both the accountant and the client. By ensuring that no management decisions are made by the auditor, and that no financial interests or relationships exist, the integrity of the audit report is preserved.
Clients benefit from an opinion that is not only compliant but credible in the eyes of regulators, members, and funding bodies.
Positive Outcomes of Ethical Boundaries
Ethical restrictions are sometimes perceived as barriers — but they actually create structure and clarity.
When an auditor maintains independence, clients receive clearer feedback, greater transparency, and reduced governance risk.
Separating bookkeeping and audit roles ensures that errors are identified objectively, rather than accepted without question.
The same independence principles protect volunteer treasurers and board members from personal exposure by demonstrating that their organisation’s finances have been tested by an impartial professional.
The Accounting Professional & Ethical Standards Board (APESB) emphasises that ethics support good decision-making, not just compliance. A Chartered Accountant must be able to apply the “reasonable and informed third-party test” — asking whether their conduct would appear appropriate to an independent observer.
This mindset underpins public confidence in the profession.
Commitment Beyond Compliance
For Chartered Accountants, ethics extend beyond prohibition.
They involve active listening, transparent communication, and continuous professional development through CA ANZ Quality Assurance and Professional Practice programs.
These frameworks ensure that audits and reviews are performed to the highest standard — with consistency, fairness, and respect for all stakeholders.
Ultimately, ethical practice is what distinguishes a Chartered Accountant.
It transforms technical expertise into trusted assurance, allowing community organisations, charities, and associations to operate with confidence, knowing that their financial reports are independent, accurate, and compliant.
