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The Australian Code of Ethics for Professional Accountants establishes ethical principles and standards that guide the conduct of accounting professionals. In the preparation of financial reports, accountants are required to adhere to integrity, objectivity, and professional behavior principles outlined in the code. This ensures that financial reports are prepared honestly, impartially, and with due care, fostering trust and confidence in the accuracy and reliability of the information presented. Compliance with ethical standards also enhances transparency and accountability in financial reporting practices, promoting the public interest and maintaining the integrity of the profession.