Every number tells a story, the question is: Did you tell the full truth?
This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
Most accountants don’t get caught for gigantic fraud.
They get caught for small ethical shortcuts made under pressure:
· “Just push this journal to next month.”
· “SARS won’t notice, it’s immaterial.”
· “We’ll fix it next year.”
And that’s how it starts.
A small adjustment becomes a recurring practice.
A harmless omission becomes a financial misstatement.
One “helpful” tax tweak turns into a criminal case.
The reality?
Your professional reputation is worth more than any client.
Lose it once — and there is no “adjustment” to fix that.
Why Ethics Matters More Today Than Ever
In today’s environment, accountants face three escalating pressures:
1. Client pressure
Cash flow is tight. Tax bills are rising. Directors want results.
You become the person they ask to bend the rules.
2. Deadline pressure
Month-end. SARS. Audit submissions.
The faster you need to work, the easier it is to “round off” a figure or skip a reconciliation.
3. Technology pressure
Automation exposes inconsistencies immediately, there is nowhere to hide sloppy or dishonest work.
The Ethical Traps That Look Harmless… Until They Aren’t
Moving a transaction date to “improve the statements”
Recording revenue before it’s earned
Letting clients remove invoices from VAT submissions
Treating missing petty cash as “immaterial”
Copy-pasting provisions every month with no support
None of these looks like fraud, until SARS asks questions, until your PI insurance refuses to pay or until your professional body opens a disciplinary case
Real life examples: Case Study 1: “It Was Only a Compilation” — SARS v Dr X (2024)
Unexplained deposits: R29.5 million + R7 million
Returns filed based on incomplete client figures
SARS triggered estimated assessments and penalties totalling R87 million
200% understatement penalty for intentional evasion
Accountant relied on client data… but their signature appeared on the compilation report
Key Lesson:
You cannot hide behind “I only compiled.”
Your signature = your credibility.
Case Study 2: Macy’s (USA, 2024)
Thousands of small adjustments over 3 years
No single entry was material, together they overstated profit by 65%
“Meet-the-target” culture encouraged quiet manipulation
Result: Massive restatements, investor fallout, internal disciplinary action
Key Lesson:
“Immaterial” does NOT mean ethical.
Small recurring misstatements create systemic fraud.
The Real Cost of Ethical Failure
You can recover from losing a client but you may never recover from losing your credibility.
Spot the Red Flags Early
Turnover doesn’t match bank deposits
Client insists on manual journals without support
VAT returns constantly amended
Adjustments appear every month with no explanation
“Can’t I just give you totals, do you really need the slips?”
If something feels wrong, document it and challenge it.
Your Five-Point Ethical Anchor
Integrity: Full truth, not half-truth
Objectivity: Don’t let pressure steer your judgment
Professional Competence: Stay current, apply standards correctly
Confidentiality: Protect client data, never misuse it
Professional Behaviour: Comply with laws & uphold trust
Every decision you make should pass this test.
How to Protect Yourself and Your Practice
✔ Issue engagement letters with ethics clauses
✔ Document everything, email queries, client explanations, advice given
✔ Review recurring journals for patterns
✔ If a client withholds records, warn and disengage
✔ Train staff to recognize ethical pressure
✔ Keep real-time working papers, not after-the-fact “fixes”
If you wouldn’t sign your name to it in public, don’t post it to the ledger.
What to Ask Yourself Before You Sign Off
Is this transaction backed by verifiable evidence?
Would I be comfortable if this appeared in the media?
Have I applied IFRS for SMEs or tax law accurately?
Have I disclosed estimates honestly?
Am I still acting in the best interests of the client AND the law?
If one answer is no STOP.
The Bottom Line
Ethics is not a chapter in a textbook.
It is how you behave at month-end, under pressure, with no one watching.
Small slips compound.
SARS catches up.
But integrity compounds too.
When your ethics are solid, everything built on them stands firm.
Join CIBA for a CPD here where we discuss Doing the Right Thing When No One’s Watching: Ethics in Financial Reporting.
🎯 Doing the Right Thing When No One’s Watching: Ethics in Financial Reporting
💡 Recording now available!
Did you miss the live session on 5 November 2025?
You can now catch the full recording of this powerful CPD session that dives into what really happens when integrity meets pressure. Learn how to keep your reports honest, your conscience clear, and your reputation untouchable , even when the spotlight’s off.
🔍 What you’ll learn:
Spot the small ethical slips that can snowball into big problems
Handle pressure from bosses, clients, or deadlines without crossing lines
Protect yourself when someone asks you to “just adjust it a little”
Build trust with transparent, consistent reporting practices
Walk away with confidence that your numbers — and your name — are clean
🎓 CPD Units: 2 (Ethics)
🕒 Duration: 1 hour
💻 Category: Channel 2: Growth
💰 Cost:
Free for Channel 2 Subscribers
R230 (VAT incl.) for everyone else
👉 Access the link here
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