The objective of the research was to identify the threats that impede adherence to professionalrnethics among selected Authorized Accountants and Authorized Auditors in Ethiopia. The pillars ofrnethical values rest on integrity, objectivity, professional competence and due care, confidentialityrnand professional behavior. Observance of these pillars of ethics was evaluated in light of threatsrnand safeguards. The research approach employed for the study was mixed research augmentedrnwith simple statistical analysis. Respondent Authorized Accountants and Authorized Auditors werernselected using snowballing technique. The data collected from the subjects of the study wasrnvalidated by triangulation. Bankers and Tax Auditors were identified as principal users of thernfinancial reports and thus used to validate the data. Key informants interview with persons havingrnclose ties with the profession was conducted to enrich the data. The findings indicate that there arernlapses in the observance of professional ethics. The lapses in upholding ethical values are tracedrnto intimidation, work environment, legislative environment, integrity, familiarity, professionalrncompetence and due care and self-interest. The recently promulgated legal provision for thernadoption of IFRS as accounting standard in Ethiopia is a milestone in the traverses of thernprofession filling the gaps in the legal and professional environment. On the bright side, there arernhigh hopes and expectations from the newly established Accounting and Audit Board of Ethiopiarntowards regulating and monitoring the profession. The migration to the new reporting andrnregulatory system requires a concerted effort from the professionals. Rules by themselves are notrnends but means towards the desired goal. Principles rather than rules would make a differencerntowards ethical professionals.rnKey words: professional ethics, threats, to professional ethics, safeguards to professional ethicsrnEthiopia