Which principle relates to maintaining professional standards and ethics?

The principle of professional competence is fundamental to maintaining professional standards and ethics in any field, particularly in finance and accounting. This principle emphasizes the importance of professionals possessing the necessary skills, knowledge, and judgment required to perform their duties effectively. Adhering to this principle ensures that individuals stay updated with the relevant standards, laws, and practices, allowing them to deliver high-quality work and provide sound advice to clients or stakeholders.

Professional competence also involves a commitment to ongoing education and training, which further underlines the importance of ethics. By ensuring that one’s professional capabilities remain sharp and current, a professional is better equipped to act in the best interest of their clients and uphold the integrity of their profession. This focus on competence is what helps to build trust and confidence among clients and the public, which are vital components of ethical practice.