ETHICS

Ethics and Accounting Profession: A Case Study in UK



Ethics and Accounting Profession: A Case Study in UK

Introduction

The ethical code of conduct provides a framework of ethical requirements for professional accountants in each country. Although, the representatives of the accountancy profession in the world are working in an environment where there are different cultures and regulatory requirements. They always have to respect the fundamental principles of the code. At the same time, the code recognizes that in the event that a national requirement is contrary to any provision of the code. International standards of financial reporting began to be developed in accordance needs of multinational corporations. The standard applies to companies and financial institutions of different countries with uneven levels of economic development and its national, often ancient traditions (Rau & Weber, 2006, 106-119).

With subsidiaries, branches and representative offices in several states, such corporations are faced with significant differences in accounting procedures, tax laws, assessment of the balance sheet, etc. This made it difficult to determine the financial results and preparation of consolidated annual reports for the whole corporation. Incommensurability of the reported data and the lack of transparency of reporting made it impossible to identify the true financial position of the business partners in different countries, resulting in major losses and even the collapse of company-daughters in cases where the parent company of trusted false information daughters or their contractors (Venezia, 2005, pp. 200-207).

Company - Snapshot

Ernst & Young is a global professional services firm in the field of audit, tax, business and transactional activities. The company best practices the ethics in its core business and operations. In 2012, the company took the first place in the ranking of Auditors of the Republic and Newspapers. It has also been recognized as the most effective Tax Advisory Firm in the sixth ranking of Business and Tax Advisors. The latest report by Ernst & Young shows that the economic power of women in the global economy will grow by 2017 more than one third. Today, the total incomes of women worldwide are estimated at 13 trillion dollars. In 2017 it will be an 18 trillion. At the same time experts Ernst & Young point out that there is still about 860 million women in the world (the majority between 20 and 65 years of age) are excluded from economic life and unprepared to participate in it. It means that they do not have sufficient education (at least secondary) and / or the society in which they live have not created the conditions to participate in economic life by providing support to the family, etc.. Among the 860 million up to 95% live in developing countries. Experts Ernst & Young in its report note that such large number of ladies who currently do not participate in the economic life, it is also a huge potential for growth in the future.

Background

One of the reasons for the Code of Professional Ethics in Accounting was the lack of regulation of ethics for ...