Professional Misconduct and Code of Professional Ethics Regulation

Transcription

1 Professional Misconduct and Code of Professional Ethics Regulation 1. Preamble 1.1 Capitalized terms used in this Regulation (and not otherwise defined herein) shall have the meanings ascribed to such terms in the Bylaws of Certified Management Accountants of Ontario (CMA Ontario). 1.2 The Interpretation provisions of the Bylaws (namely, Section 2) form part of this Regulation and are incorporated herein by reference. 2. Professional Misconduct 2.1 In this section, negligence means an act or an omission, either alone or cumulatively, in the carrying out of the work by a Member, Student, Firm, Public Accounting Firm or Professional Corporation that constitutes a failure to maintain the standards that a reasonable and prudent Member, Student, Firm, Public Accounting Firm or Professional Corporation of equivalent designation in CMA Ontario would maintain in the circumstances. 2.2 For the purposes of the Bylaws, the following actions constitute professional misconduct : negligence; a breach by a Member, Student, Firm, Public Accounting Firm or Professional Corporation of the Act, or the Bylaws or the Regulations; undertaking work the Member, Student, Firm, Public Accounting Firm or Professional Corporation is not competent to perform by virtue of his, her or its training and experience; fraud, theft, forgery, tax evasion, violation of securities laws, or unlawful conduct in the Member s, Student s, Firm s, Public Accounting Firm s or Professional Corporation s professional capacity, including any criminal conviction of the above; Professional Misconduct and Code of Professional Ethics Regulation p. 1 of 5

2 (f) pleading guilty to or being found guilty of a criminal offence but being discharged absolutely or upon conditions prescribed in a probation order; the failure of a Member, Student, Firm, Public Accounting Firm or Professional Corporation to respond promptly and cooperate fully with respect to requests for information and other communications from CMA Ontario. 3. Code of Professional Ethics All Members, Students, Firms, Public Accounting Firms and Professional Corporations will adhere to the following Code of Professional Ethics of CMA Ontario: 3.1 A Member, Student, Firm, Public Accounting Firm or Professional Corporation will act at all times with: responsibility for and fidelity to public needs; fairness and loyalty to such Member's, Student s, Firm s, Public Accounting Firm s or Professional Corporation s associates, clients and employers; and competence through devotion to high ideals of personal honour and professional integrity. 3.2 A Member, Student, Firm, Public Accounting Firm or Professional Corporation maintain at all times independence of thought and action; not express an opinion on financial reports or statements without first assessing her, his or its relationship with her, his or its client to determine whether such Member, Student, Firm, Public Accounting Firm or Professional Corporation might expect her, his or its opinion to be considered independent, objective and unbiased by one who has knowledge of all the facts; when preparing financial reports or statements or expressing an opinion on financial reports or statements, disclose all material facts known to such Member, Student, Firm, Public Accounting Firm or Professional Corporation in order not to make such financial reports or statements Professional Misconduct and Code of Professional Ethics Regulation p. 2 of 5

3 misleading, acquire sufficient information to warrant an expression of opinion and report all material misstatements or departures from generally accepted accounting principles; and comply with the requirements of the CMA Ontario Independence Regulation for Assurance, Audit and Review Engagements. 3.3 A Member, Student, Firm, Public Accounting Firm or Professional Corporation not disclose or use any confidential information concerning the affairs of such Member's, Student s, Firm s, Public Accounting Firm s or Professional Corporation s employer or client unless authorized to do so or except when such information is required to be disclosed in the course of any defence of himself, herself or itself or any associate or employee in any lawsuit or other legal proceeding or against alleged professional misconduct by order of lawful authority of the Board or any Committee of CMA Ontario in the proper exercise of their duties but only to the extent necessary for such purpose and only as permitted by law; obtain, at the outset of an engagement, written agreement from any party or parties to whom work is contracted not to disclose or use any confidential information concerning the affairs of such Member s, Student s, Firm s, Public Accounting Firm s or Professional Corporation s employer or client unless authorized to do so or except when such information is required to be disclosed in the course of any defence of himself, herself or itself or any associate or employee in any lawsuit or other legal proceeding but only to the extent necessary for such purpose and only as permitted by law; inform his, her or its employer or client of any business connections or interests of which such Member's, Student s Firm s, Public Accounting Firm s or Professional Corporation s employer or client would reasonably expect to be informed; not, in the course of exercising his, her or its duties on behalf of such Member's, Student s, Firm s, Public Accounting Firm s or Professional Corporation s employer or client, hold, receive, bargain for or acquire any fee, remuneration or benefit without such employer's or client's knowledge and consent; and take all reasonable steps, in arranging any engagement as a consultant, to establish a clear understanding of the scope and objectives of the work before it is commenced and will furnish the client with an estimate of cost, Professional Misconduct and Code of Professional Ethics Regulation p. 3 of 5

4 preferably before the engagement is commenced, but in any event as soon as possible thereafter. 3.4 A Member, Student, Firm, Public Accounting Firm or Professional Corporation (f) (g) conduct himself, herself or itself toward Members, Students, Firms, Public Accounting Firms and Professional Corporations with courtesy and good faith; not commit an act discreditable to the profession; not engage in or counsel any business or occupation which, in the opinion of CMA Ontario, is incompatible with the professional ethics of a management accountant or public accountant; not accept any engagement to review the work of a Member, Student, Firm, Public Accounting Firm or Professional Corporation for the same employer except with the knowledge of that Member, Student, Firm, Public Accounting Firm or Professional Corporation, or except where the connection of that Member, Student, Firm, Public Accounting Firm or Professional Corporation with the work has been terminated, unless the Member, Student, Firm, Public Accounting Firm or Professional Corporation reviews the work of others as a normal part of his, her or its responsibilities; not attempt to gain an advantage over Members, Students, Firms, Public Accounting Firms and Professional Corporations by paying or accepting a commission in securing management accounting or public accounting work; uphold the principle of adequate compensation for management accounting and public accounting work; and not act maliciously or in any other way which may adversely reflect on the public or professional reputation or business of a Member, Student, Firm, Public Accounting Firm or Professional Corporation. 3.5 A Member, Student, Firm, Public Accounting Firm or Professional Corporation at all times maintain the standards of competence expressed by the Board from time to time; Professional Misconduct and Code of Professional Ethics Regulation p. 4 of 5

5 disseminate the knowledge upon which the profession of management accounting is based to others within the profession and generally promote the advancement of the profession; undertake only such work as he, she or it is competent to perform by virtue of his, her or its training and experience and will, where it would be in the best interests of an employer or client, engage, or advise the employer or client to engage, other specialists; expose before the proper tribunals of CMA Ontario any incompetent, unethical, illegal or unfair conduct or practice of a Member, Student, Firm, Public Accounting Firm or Professional Corporation which involves the reputation, dignity or honour of CMA Ontario; and endeavour to ensure that a professional partnership, company or individual, with which such Member, Student, Firm, Public Accounting Firm or Professional Corporation is associated as a partner, principal, director, officer, associate or employee, abides by the Code of Professional Ethics and the Rules of Professional Conduct established by CMA Ontario. Professional Misconduct and Code of Professional Ethics Regulation p. 5 of 5