Ethics in Accounting

Ethics in Accounting

In this article, the author has tried to assess the importance of Ethics in accounting. The author has given an example of Enron accounting scandal and other scandals that have led to more intense requirement for ethical standards.

For the purpose of accurate information on companies and individuals firms' auditors when making financial decisions, public statements and other business activities, it is important that the auditor follow the competent, neutral and accurate. Due to this, the importance of ethics in accounting, several organizations have formed to serve as watchdogs for ethical reporting. The American Institute of CPAs (AICPA) has a Code of Professional Conduct which offers advice regarding the tax consultants' ethical and unsafe situations. Beside this, the Institute of Management Accountants (IMA) and the Institute of Internal Auditors (IIA) also offers codes of ethics (Jeffery, 1998).

The ethics of the project creates an atmosphere of confidence among clients and thus society. When you take an accountant in any project decisions unethical, benefiting at the expense of the rest of the group, does not hurt himself, but also detrimental to the facility itself, which will become questionable as no one can deal with the origin unethical in their dealings and prefer dealing with people and facilities that could to trust in its dealings with the public moral.

Trust: The Ethical behavior creates an area where the customer feels comfortable that he will be treated fairly.

Ethics concerned with transparency in accounting and finance, and build trust within the community and among investors and customers. Once you lose someone's trust of the community or origin is difficult to restore them again (www2.accaglobal.com).

Confidentiality: The accountant is the person who briefed on sensitive financial secrets of the origin. This information can be used by another facility to their ...