group 2 :1.Dian Fihastuti2.John Adiguna3.Murni Wanti

Situmorang4.Rachmalia Marlina5.Ratna Anggi Pratiwi6.Rhani Rachmanda

Introduction

This Part of the Code describes how the conceptual framework contained

in Part A applies in certain situations to professional accountants in public

practice. This Part does not describe all of the circumstances and

relationships that could be encountered by a professional accountant in

public practice that create or may create threats to compliance with the

fundamental principles. Therefore, the professional accountant in public

practice is encouraged to be alert for such circumstances and

relationships.

A professional accountant shall comply with the following fundamental principles: Integrity - to be straightforward and honest in all professional and business relationships Objectivity - to not allow bias, conflict of interest or undue influence of others to override professional or business judgments. Professional Competence and Due Care - to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competentprofessional services based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards.Confidentiality - to respect the confidentiality of information acquired as a result of professional and business relationships and, therefore, not disclose any such information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor use the information for the personal advantage of the professional accountant or third parties.Professional behaviour - to comply with relevant laws and regulations and avoid any action that discredits the profession.

The principle of confidentiality imposes an obligation on all professional accountants to refrain from:• Disclosing outside the firm or employing organization confidential

information acquired as a result of professional and business relationships without proper and specific authority or unless there is a legal or professional right or duty to disclose; and

• Using confidential information acquired as a result of professional and business relationships to their personal advantage or the advantage of third parties.

A professional accountant shall maintain confidentiality, including in a social

environment, being alert to the possibility of inadvertent disclosure, particularly to a

close business associate or a close or immediate family member.

A professional accountant shall take reasonable steps to ensure that staff under the

professional accountant’s control and persons from whom advice and assistance is

obtained respect the professional accountant’s duty of confidentiality.

The need to comply with the principle of confidentiality continues even after the end of

relationships between a professional accountant and a client or employer. When a

professional accountant changes employment or acquires a new client, the professional

accountant is entitled to use prior experience. The professional accountant shall not,

however, use or disclose any confidential information either acquired or received as a

result of a professional or business relationship.

In deciding whether to disclose confidential information, relevant factors to consider

include:

a. Whether the interests of all parties, including third parties whose interests may be

affected, could be harmed if the client or employer consents to the disclosure of

information by the professional accountant;

b. Whether all the relevant information is known and substantiated, to the extent it is

practicable; when the situation involves unsubstantiated facts, incomplete

information or unsubstantiated conclusions, professional judgment shall be used in

determining the type of disclosure to be made, if any;

c. The type of communication that is expected and to whom it is addressed; and

d. Whether the parties to whom the communication is addressed are appropriate

recipients.

Professional Behavior

Professional BehaviorProfessional behavior goes beyond just thinking about acting with professionalism. It involves specific steps and actions you implement in a job to fulfill your duties and responsibilities to clients, customers, co-workers and company associates. No matter what your job, critical thinking and problem-solving, ethical and responsible role fulfillment, initiative and accountability, and appropriate nonverbal gestures and demeanor all demonstrate professional behavior.

Professional DemeanorA variety of nonverbal gestures and mannerisms fit into a category of behaviors that make up professional demeanor. Dressing and grooming in line with the job and company policy are examples. Professionals dress to project the right image to customers, not to test the minimum boundaries of company policy. Professionals maintain poise under pressure and show respect for others rather than lashing out physically or emotionally. Shaking hands firmly, listening actively and with eye contact, smiling and standing with tall posture are other elements of professional demeanor.

Critical Thinking and Problem-SolvingCritical thinking is an intentional effort to think through processes logically. A professional is more likely to think through a challenging scenario to choose the best action as opposed to acting impulsively or irrationally. Problem-solving professional behaviors are closely tied to critical thinking as well. Thoughtful problem-solving involves an intentional step-by-step approach of listening, investigating, defining and then working to resolve a problem. Consultative salespeople are problem-solving professionals. They ask questions of prospects, address concerns, consider alternative remedies and recommend solutions. Managers or leaders also work through problem-solving steps to find optimum solutions.

Ethical and Responsible ActionsProfessionals exhibit moral decision-making and responsible actions in many ways. A professional respectfully follows his manager's directions to complete tasks and projects. When faced with a choice between doing right by a customer or making immediate profit for the company, an ethical professional does what is rAight first. An honest and trustworthy worker uses company resources and materials efficiently just as he would his own. In contrast, less professional and ethical workers may overuse or abuse access to resources and even use them for personal purAposes. Responsible employee behaviors include turning in completed work by deadlines and following through on commitments to co-workers and clients.

Initiative and AccountabilityEmployees show initiative by seeking new work and responsibilities and by looking for resources without always needing assistance. In a retail setting, a professional sales associate organizes product displays and completes routine cleaning activities when there are no immediate opportunities to help customers. Professionals also show initiative by seeking internal and external training opportunities, such as attending workshops and conferences, or mentoring a new employee. Accountability means accepting ownership of mistakes or problems, and working for a remedy. Service reps often have to take personal accountability for company failures to satisfy a customer's desires.

Professional Appointment

Client AcceptanceBefore accepting a new client relationship, a professional accountant in public practice shall determine whether acceptance would create any threats to compliance with the fundamental principles. Potential threats to integrity or professional behaviour may be created from, for example, questionable issues associated with the client (its owners, management or activities).Client issues that, if known, could threaten compliance with the fundamental principles include, for example, client involvement in illegal activities (such as money laundering), dishonesty or questionable financial reporting practices.A professional accountant in public practice shall evaluate the significance of any threats and apply safeguards when necessary to eliminate them or reduce them to an acceptable level. Examples of such safeguards include:• Obtaining knowledge and understanding of the client, its owners, managers and those responsible for its governance and business activities; or• Securing the client’s commitment to improve corporate governance practices or internal controls. Where it is not possible to reduce the threats to an acceptable level, the professional accountant in public practice shall decline to enter into the client relationship.It is recommended that a professional accountant in public practice periodically review acceptance decisions for recurring client engagements.

Engagement Acceptance

The fundamental principle of professional competence and due care imposes an obligation on a professional accountant in public practice to provide only those services that the professional accountant in public practice is competent to perform. Before accepting a specific client engagement, a professional accountant in public practice shall determine whether acceptance would create any threats to compliance with the fundamental principles. For example, a self-interest threat to professional competence and due care is created if the engagement team does not possess, or cannot acquire, the competencies necessary to properly carry out the engagement.A professional accountant in public practice shall evaluate the significance of threats and apply safeguards, when necessary, to eliminate them or reduce them to an acceptable level.

Changes in a Professional AppointmentA professional accountant in public practice who is asked to replace another professional accountant in public practice, or who is considering tendering for an engagement currently held by another professional accountant in public practice, shall determine whether there are any reasons, professional or otherwise, for not accepting the engagement, such as circumstances that create threats to compliance with the fundamental principles that cannot be eliminated or reduced to an acceptable level by the application of safeguards. Safeguards shall be applied when necessary to eliminate any threats or reduce them to an acceptable level. Examples of such safeguards include:•When replying to requests to submit tenders, stating in the tender that, before accepting the engagement, contact with the existing accountant will be requested so that inquiries may be made as to whether there are any professional or other reasons why the appointment should not be accepted;•Asking the existing accountant to provide known information on any facts or circumstances that, in the existing accountant’s opinion, the proposed accountant needs to be aware of before deciding whether to accept the engagement; or•Obtaining necessary information from other sources.When the threats cannot be eliminated or reduced to an acceptable level through the application of safeguards, a professional accountant in public practice shall, unless there is satisfaction as to necessary facts by other means, decline the engagement.

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