This study attempted to provide some empirical evidence into the ethical issues and conflicts faced by practitioners and to gauge their perceptions on the relevance and usefulness of the Malaysian Institute of Accountants (MIA) code of ethics as a guide to ethical behaviour.
 
The result showed that a majority of respondent agreed that the code helped them to e more aware of ethical concerns in their work and decisions and that it also enhanced public confidence and professional image besides improving intra professional relationship. No significant relationship was seen by respondents between the code and a firm’s competitive position. Rules on advertising and fees were singled out particularly by respondents from the big firm as restricting the growth and development of the profession and thus should be amended. Respondents especially those from the small firm frequently faced ethical conflicts regarding clients’ wishes to circumvent the Income Tax Act 1967 and clients’ proposals for changes in financial statements. On these ethical issues and conflict, the code was found to be not very relevant and useful as a guide to ethical behaviour.
 
Overall, these results suggest that the accounting profession might wish to review its code of ethical conduct on these issues.

Research Team:
•  Lim Chui Choo
•  Prof Teoh Hai Yap, UM

Institute:
Nanyang Technological Institute Singapore