




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 19, No. 1 (2025), pp. 263-272 

 

263 
 

THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS 

IN THE DIGITAL AGE 

 

A. OSMANOVIĆ, D. ŠARIĆ 

 

Azira Osmanović¹, Damir Šarić² 

¹ University of Tuzla, Bosnia and Herzegovina  

https://orcid.org/0009-0005-1012-8950, E-mail: azira.osmanovic1@gmail.com   

² Institute for Health Insurance of Tuzla Canton, Bosnia and Herzegovina  

https://orcid.org/0009-0009-9141-4586, E-mail: damir-saric@hotmail.com  

 

Abstract: The digital age brings many challenges to the modern business world. Due 

to these significant challenges, the issue of ethics is gaining increasing attention. Ethics focuses 

on making moral decisions and acting upon them. Both in private and professional life, it is 

important to be honest, fair, and a good person. Ethics and ethical behavior are extremely 

important in the work of accountants, and they should apply the code of professional ethics for 

accountants. Proper application of professional ethics, rules, norms, laws, principles, and 

ethical codes significantly contributes to a positive work environment. The fundamental beliefs 

and value systems that accountants apply affect their work and, consequently, influence the 

trust in the results of their work. Financial statements provide information about an 

organization’s operations, and accountants are responsible for ensuring that this information 

is accurate and reliable. Nowadays, trust in financial statements has been significantly 

damaged, but when ethical norms are visibly applied in the behavior of accountants, it greatly 

influences the trust in their work and the accuracy of the data presented in financial reports. 

The subject of this research is to determine how significant the application of professional 

ethics of accountants is in the digital age. The goal is to identify how applying the International 

Code of Ethics for Professional Accountants contributes to the quality of accountants’ work. 

The paper presents the most important results of empirical research related to accountants’ 

perceptions of the importance of applying ethical principles in the accounting profession. The 

results show a high level of awareness among accountants regarding the importance of 

applying the highest ethical standards, which is encouraging and instills confidence in 

strengthening the integrity of the accounting profession in the future. 

Keywords: ethics, professional ethics of accountants, accounting profession, financial reports 

 

INTRODUCTION  

Accountants perform their work by respecting the employer’s requirements on one hand, 

while on the other hand, they bear the responsibility to carry out their duties professionally and 

to protect the reputation of the accounting profession. In the era of digitalized business, it is 

increasingly being discovered that financial statements do not reflect the true state of business 

operations, which raises the need for further consideration of business ethics. One of the 

measures for preventing fraud in financial statements is the establishment of internal company 

procedures through which internal control is implemented with the aim of identifying which 

actions and transactions are unethical (Osmanović & Jusupović, 2019, p. 293).  

https://orcid.org/0009-0005-1012-8950
mailto:azira.osmanovic1@gmail.com
https://orcid.org/0009-0009-9141-4586
mailto:damir-saric@hotmail.com


THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS IN THE DIGITAL AGE 

 

264 
 

Serious disruptions in economic processes and human relations indicate the importance 

of applying ethics in business practices. In order to ensure dignity and restore trust in the 

accounting profession, accountants are required to behave in accordance with specific rules 

defined in codes of ethics, which primarily emphasize moral norms in behavior. In addition to 

professional ethics, accountants are also obligated to comply with applicable legal regulations. 

The Code of Ethics for Professional Accountants aims for accountants to carry out their 

professional duties with integrity, objectivity, professional competence and due care, 

confidentiality, and professional behavior. Segregation of duties is one of the fundamental 

control procedures that reduces the likelihood of an employee being able to commit and conceal 

errors, irregularities, or fraud (Osmanović & Šarić, 2024, p. 306). 

This paper presents the basic characteristics and principles of professional ethics for 

accountants, as well as how professional ethics contribute to the reliability of financial 

reporting. In relation to the above, an empirical study was conducted on the impact of applying 

the international code of professional ethics on the quality performance of accounting work. 

 

I. Theoretical basis of the research 

I.1. The term of creative accounting 

The word ethics originates from the Latin word meaning morality. Ethics is “a 

philosophical discipline that examines the goals and meaning of moral desires, the fundamental 

criteria for evaluating moral acts, as well as the basis and source of morality in general” (Sever, 

Tušek & Žager, 2012, p. 164). The results show that companies where organizational culture 

and work climate are ethically oriented, and where written codes of ethics exist, are more 

successful in raising employees' awareness of appropriate ethical behavior (Gibson et al., 2009, 

p. 467). The system of moral values of every individual is developed and acquired from early 

childhood within the family, but under the influence of the environment and the society in 

which the individual lives, changes to the acquired moral values can occur. Ethics as a scientific 

discipline studies the principles of proper, good, and moral action, and ethical principles 

determine what is acceptable and unacceptable behavior. In the digital age, ethics in business 

is given special importance and attention. Business ethics can be defined as 'the ability to reflect 

on values in the decision-making process in corporations, in order to determine how these 

values and decisions affect different stakeholder groups and to identify how managers can use 

these insights' (Certo & Certo, 2006, p. 66). Every organization strives to have employees who 

are professional and competent, but in addition, it is especially important that employees 

possess certain moral qualities and adhere to the rules and norms of ethical behavior. The 

application of ethical behavior in an organization depends on the individual, but it also largely 

depends on whether the organization has established written rules of ethical conduct. Internal 

control plays an increasingly important role and is reflected in the protection of assets, and in 

the prevention and detection of fraud and irregularities that may occur during business 

operations (Osmanović & Šarić, 2023, p. 95).  

Business ethics is a system of business principles or values aimed at harmonizing 

business efficiency with the ethical dimension of operations (Hunjet & Kozina, 2014, p. 192). 

Business ethics represents a code of conduct accepted in the business world, which protects 



Azira OSMANOVIĆ, Damir ŠARIĆ 

 

265 
 

both the organization and its employees, and has therefore become an integral part of the 

modern business environment. Accounting ethics is defined as a set of generally accepted 

moral norms based on ethical values required when preparing and presenting financial 

information related to a specific institution or company (Bedeković, 2013, p. 103).  

 

I.2. Fundamental Principles of the Code of Ethics for Professional Accountants 

The Code of Ethics for Professional Accountants, issued by the International Federation 

of Accountants (IFAC), is the most well-known and most widely applied code in the accounting 

profession. The International Federation of Accountants was founded in 1977 with the aim of 

serving the public interest and strengthening the accounting profession, through the adoption 

of various professional standards and written rules of conduct for accountants, as well as 

through numerous other forms of professional activity. Within IFAC, there is a special board 

for the development of international ethics standards for accountants (IESBA – International 

Ethics Standards Board for Accountants), which developed the Code of Ethics for Accountants. 

This code consists of three parts: the first part refers to the general section, the second part 

refers to accountants in public practice, and the third part refers to accountants in business. 

The Code contains the following material (IESBA, 2023, p. 8–9): 

 Part 1 – Complying with the Code, Fundamental Principles, and the Conceptual 

Framework, which includes the fundamental principles and the conceptual framework, and 

applies to all professional accountants. 

 Part 2 – Professional Accountants in Business, which includes additional material 

relevant to professional accountants working in business entities while performing professional 

activities. Professional accountants in business include those who are employed, engaged, or 

contracted in executive or non-executive positions in, for example: Commerce, industry, or 

service sectors; Public sector; Education; Non-profit sector; Regulatory or professional bodies. 

Part 2 also applies to individuals who are professional accountants in public practice when 

performing professional activities within the context of their relationship with the firm, whether 

as contractors, employees, or owners. 

 Part 3 – Professional Accountants in Public Practice, which includes additional material 

applicable to professional accountants in public practice when providing professional services. 

- International Independence Standards, which contain additional material applicable 

to professional accountants in public practice when performing assurance services, and 

include:  

 Part 4A – Independence for Audit and Review Engagements, which applies when 

conducting audit or review engagements 

 Part 4B – Independence for Assurance Engagements Other than Audit and Review 

Engagements, which applies when performing assurance engagements that are not audits or 

reviews 

- Glossary, which contains defined terms (along with additional explanations where 

appropriate) and described terms that have a specific meaning in certain parts of the Code. 

For example, as stated in the Glossary, in Part 4A, the term “audit engagement” applies 



THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS IN THE DIGITAL AGE 

 

266 
 

equally to both audit and review engagements. The Glossary also includes lists of 

abbreviations used in the Code and in other standards referenced by the Code. 

Due to the complex political system in Bosnia and Herzegovina, there are two 

professional organizations whose aim is to develop the accounting profession. They are 

responsible for organizing the acquisition of professional titles in the field of accounting and 

auditing, providing education in the accounting profession, ensuring compliance with the code 

of ethics, translating international accounting standards, and maintaining a certain level of 

quality within the accounting profession (Osmanović, Šarić & Čanić, 2023, p. 18). In Bosnia 

and Herzegovina, the Law on Accounting and Auditing prescribes the obligation to apply 

accounting and ethical standards; however, practice shows non-compliance with these 

regulations. 

 

II. Methodology   

II.1. Population and Sample 

The conducted empirical research aimed to demonstrate the importance of professional 

ethics for the accounting profession. The target population in this research consisted of 

employees in accounting and finance departments within the territory of Bosnia and 

Herzegovina. Scientific research on the impact of professional ethics of accountants on the 

accounting profession was carried out through a survey questionnaire. A total of 44 employees 

returned duly completed questionnaires. The objective of the research was to determine the 

significance of professional ethics in the field of accounting. Accordingly, the paper sets forth 

one main and one auxiliary scientific hypothesis: 

H1: Accountants’ attitudes towards ethical behavior are related to their knowledge of the 

Code of Ethics for Professional Accountants. 

PH1: The application of the Code of Ethics for Professional Accountants in the digital age 

has a positive impact on reducing fraud. 

 

II.2. Statistical Analysis 

The conducted scientific research included the collection of primary data using the 

survey method, through a questionnaire intended for accounting employees. Out of a total of 

66 questionnaires sent via email between December 1, 2024, and December 31, 2024, 44 were 

returned duly completed, representing a response rate of 66.66% of the total sample. This 

response rate is considered acceptable for this type of research. However, it should be 

emphasized that the results of this research do not represent a rule, but can serve as a useful 

guideline for future research. 

 

III. Results  

The Code of Ethics for Professional Accountants requires professional accountants to 

adhere to fundamental ethical principles. It also mandates the use of a conceptual framework 

to identify, evaluate, and address threats to compliance with those principles. This research 

aimed to examine whether accountants consider professional ethics to be significant for the 

accounting profession. 



Azira OSMANOVIĆ, Damir ŠARIĆ 

 

267 
 

The Code of Ethics for Professional Accountants should be known and understood by 

every accountant in order to perform accounting activities as effectively as possible. Based on 

the conducted research, 41% of respondents are fully familiar with the provisions of the Code, 

4% are not familiar at all, 16% are slightly familiar, while 39% are partially familiar with its 

provisions. 

 

Figure 1. Familiarity of respondents with the provisions of the Code of Ethics for 

Professional Accountants 

 

Although professional ethics implies that accountants should perform their duties 

objectively, the research results provide insight into how this expectation is perceived in 

practice. According to the data, 33 respondents (75%) believe it is fully justified to expect 

accountants to carry out their work objectively. An additional 6 respondents (14%) consider 

this expectation to be quite justified, while 5 respondents (11%) believe it is only partially 

justified. Notably, none of the respondents indicated that such an expectation is unjustified or 

only slightly justified. Based on the collected responses, it can be concluded that there is a clear 

understanding that accountants are expected to perform their duties with a high degree of 

objectivity, independence, and impartiality.  

 

Figure 2. Respondents’ perceptions of how justified it is to expect accountants to perform 

their work objectively 

 

 

The accountant's code of ethics prescribes honesty in performing the job. The conducted 

scientific research led to the realization that 39 respondents (89%) believe that accountants can 

be expected to perform their work confidentially, 4 respondents (9%) believe it is quite justified 

to expect accountants to perform their work confidentially, and only 1 respondent (2%) 

believes it is partially reasonable to expect honest performance of accounting duties. 

41%

39%

16%
4%

completely partially a little  not at all

11%

14%

75%

partially quite completely



THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS IN THE DIGITAL AGE 

 

268 
 

Figure 3. Respondents' opinions on how reasonable it is to expect accountants to perform 

their work confidentially 

 

Based on the Code of Ethics for professional accountants, which requires professional 

competence, the research showed how many respondents believe it is reasonable to expect 

accountants to acquire and maintain professional competence. Out of the total number of 

respondents, 26 (59%) think it is completely justified to expect accountants to acquire and 

maintain professional competence, 16 respondents (36%) think it is quite reasonable to expect 

it, and 2 respondents (5%) think it is partially justified to have such an expectation, as shown 

in the following graph. 

 

Figure 4. Respondents' opinions on how reasonable it is to expect accountants to acquire and 

maintain professional competence 

 
The Code of Ethics for Professional Accountants requires accountants to perform their 

work with due professional care, thoroughly, and in a timely manner. In Bosnia and 

Herzegovina, in practice, accountants, in addition to their accounting duties, often perform 

other tasks that are not part of their job description. Because of this, due to their workload and 

other tasks, the question of whether accounting tasks are being performed appropriately arises. 

In this regard, according to the research conducted, 86% (38 respondents) believe that it is 

completely justified to expect accounting tasks to be performed with due professional care, 

thoroughly, and on time, while 14% (6 respondents) believe that it is quite justified to expect 

the work to be performed carefully, thoroughly, and on time. 

2%

9%

89%

partially quite completely

5%

36%

59%

partially quite completely



Azira OSMANOVIĆ, Damir ŠARIĆ 

 

269 
 

Figure 5. Respondents' views on how reasonable it is to expect accountants to perform their 

work with due diligence (thoroughly, on time) 

 
 

It is extremely important for accountants to maintain the confidentiality of the 

information they obtain while performing accounting work. The conducted research shows that 

91% of the respondents believe it is fully justified to expect accountants to keep business 

information confidential, while 9% of the respondents believe it is quite justified to expect 

confidentiality. 

 

Figure 6. Respondents' views on how reasonable it is to expect accountants to keep business 

information confidential 

 

The work of an accountant is almost unimaginable without adhering to and working in 

accordance with legal regulations. Work in which rules and regulations are not applied leads 

to numerous consequences, ranging from financial to criminal. Information about accounting 

and financial frauds discovered by auditors and inspectors is often disclosed to the public. The 

opinion of respondents in the conducted survey is that 96% of them believe it is reasonable to 

expect accountants to act in accordance with all applicable accounting and other regulations, 

while only 4% of respondents believe that partial expectations are justified. 

0%

14%

86%

0%

partially quite completely not justified

0%

9%

91%

partially quite completely



THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS IN THE DIGITAL AGE 

 

270 
 

Figure 7. Respondents' views on how reasonable it is to expect accountants to act in 

compliance with applicable accounting and other regulations 

 

 

By applying Spearman's correlation coefficient, the basic research hypothesis that 

accountants' attitudes towards ethical behavior are related to knowledge of the Code of Ethics 

for Professional Accountants was not verified in the research. 

 

Table 1. Statistical presentation of the rank correlation coefficient between accountants' 

attitudes towards ethical behavior and their knowledge of the Code of Ethics for Professional 

Accountants 

 Accountants' familiarity 

with the Code of Ethics for 

Professional Accountants 

Attitudes of 

accountants towards 

ethical behavior 

 

 

 

 

 

Spearman’s 

Accountants' familiarity 

with the Code of Ethics for 

Professional Accountants 

Correlation 

 

Coefficient 

 

Sig.(1-

tailed) 

 

N 

 

1,000 

 

 

. 

 

44 

 

,105 

 

 

,136 

 

44 

Attitudes of accountants 

towards ethical behavior 

Correlation 

 

Coefficient 

 

Sig.(1-

tailed) 

 

N 

 

,105 

 

 

,136 

 

44 

 

1,000 

 

 

. 

 

44 

 

Spearman's rank correlation coefficient (rs) is 0.105, while the empirical significance 

of the correlation coefficient is 0.136, which means that α* > 0.05. Therefore, it can be 

concluded that the relationship between the movement of knowledge of the Code of Ethics for 

Professional Accountants and the attitudes of accountants toward ethical behavior is not 

statistically significant. Thus, the movement of knowledge of the Code of Ethics for 

0%

4%

96%

partially quite completely



Azira OSMANOVIĆ, Damir ŠARIĆ 

 

271 
 

Professional Accountants is not related to the movement in the attitudes of accountants toward 

ethical behavior. 

To test hypothesis PH1, a one-tailed test for proportion was used at the lower limit with 

a significance level of 95%. The proportion among the respondents is p = 0.56. 

 

Table 2. Statistical presentation of the interval assessment 

 Values 

Proportion between respondents p                                           0,56 

Sample size (n)                                          44      

Reliability 0,95 

Lower limit 0,5035 

 

With a confidence level of 95%, it can be concluded that the proportion of accountants 

who believe that the implementation of the Code of Ethics for Accountants in the Digital Age 

has a positive impact on reducing fraud is 50.35%, which is greater than 50%, thus supporting 

the acceptance of hypothesis PH1. 

 

DISCUSSIONS 

The application of ethical principles in an organization depends not only on the moral 

values of individuals but also on written rules of conduct. These written rules define 

unacceptable behaviors within the organization, significantly contributing to the creation of a 

positive working environment for all employees. Written codes of ethics developed by 

international professional associations hold particular value within an organization. The 

environment in which accountants operate should uphold ethical values, especially today, when 

accountants face numerous challenges and accounting fraud is increasingly prevalent. The goal 

of the accounting profession is to establish high-quality work and professional behavior. If this 

is achieved, the profession will surely earn the respect and trust of the environment in which it 

works and operates. 

Although international accounting standards are respected, the accounting profession 

in Bosnia and Herzegovina is still not fully regulated. The results of the research confirm the 

respondents' awareness of the importance of professional ethics for accountants and the critical 

role these ethics play in the business world. Accountants in Bosnia and Herzegovina are aware 

that they must perform their duties objectively, confidentially, and honestly, with due 

professional care, while acquiring and maintaining professional competence and adhering to 

all legal rules and regulations. 

The research also revealed that accountants are familiar with the Code of Ethics for 

Professional Accountants, and the vast majority believe that the principles of the Code are 

applied by accountants. A potential limitation of this study is the relatively small sample size, 

so it is recommended that future researchers expand the study with a larger sample. The 

application of the Code of Ethics for Professional Accountants helps reduce accounting fraud, 

and all professional accountants should strive to apply the Code in their work. However, despite 

the knowledge of the Code of Ethics and awareness of professional conduct, the hypothesis 



THE IMPORTANCE OF PROFESSIONAL ETHICS FOR ACCOUNTANTS IN THE DIGITAL AGE 

 

272 
 

that accountants’ attitudes are related to their knowledge of the Code of Ethics cannot be 

confirmed. One possible reason for rejecting this hypothesis could be external influences, such 

as profit, personal income, and intense pressure for positive business results, which may 

outweigh ethics and morality for accountants. 

 

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