RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Ethical aspects of accountancy and audit professions
Anda GHEORGHIU
National School of Political Studies and Public Administration, Bucharest, Romania
anda.gheorghiu@facultateademanagement.ro
Abstract: The aim of this paper is to analyse the existing international regulations in the European Union
and the United States regarding the accounting and external audit professional ethics. The methodological
approach is an analytical argumentative research paper. The approach is systematic, because each category
of international regulations is presented sequentially, i.e. the regulator, the evolution in time of the relevant
fundamental principles and also, several practical recommendations for the future are made. Some case studies
debating the ethics codes for Romanian professionals in accountancy and audit are presented.
Keywords: ethics, audit, corruption.
Fundamental principles of ethics in the accountancy and
external auditing profession
A financial scandal publicized in November 2014 by a journalistic enquiry conducted by
the International Consortium of Investigative Journalists (Luxembourg Leaks), based on private
information about Luxembourg’s tax rulings set up by PricewaterhouseCoopers audit
firm from 2002 to 2010 to the benefits of over three hundred clients-multinational companies
based in Luxembourg. This investigation contributed to the implementation of measures
aiming at reducing tax dumping and regulating tax avoidance schemes advantageous to multinational
companies. (Wayne & Carr, 2014)
The Panama Papers (11.5 million leaked documents that detail financial and attorney–client
information for more than 214,488 offshore entities) has raised recently many questions about
the ethical behaviour of professional accounting and audit entities worldwide. The leak claims
illegal operations of affluent individuals and public officials, with the help of attorneys and
accountants, who covered frauds, tax evasion, and international sanctions.
The aim of this paper is to analyse the existing international regulations in the European
Union and the United States regarding the accounting and external audit professional ethics.
The methodological approach is an analytical argumentative research paper. The approach is
systematic, because each category of international regulations is presented sequentially, i.e.