The Ethics Of The Accounting Profession - 1204 Words

Ethics is a decision one makes in knowing the right thing to do and actually doing the right thing. They are the rules of behavior based on one’s belief of what is morally good and bad. A person may hear the word ethics and immediately think of government or the law. Not only does ethics have a role in government, it also plays a major role in business, including accounting. Schroeder, Clark Cathey (624) states that the â€Å"reason for a high level of ethical conduct is the need for public confidence in the quality of services provided by the profession.† Ethical conduct not only encourages a high standard of performance; it also encourages a high quality of professional service. Enron’s financial scandal put a huge damper on that confidence. The Enron scandal made the public aware and conscientious of what could happen when dealing with unethical individuals. Since then, the public has educated themselves and are continually becoming more informed. Ethics in the accounting profession is not going away, it will only continue to change as business transaction change and become more complex. Although some behaviors are legal they may not be held as ethical. For example, Henry Blodgett, an analyst for Merrill Lynch, publicly recommend certain technology stocks, although he knew they were not any good (Smith, 2012). His recommendation of these stocks was unethical, but completely legal. One difference between the court system and judging ethical standards is the courtShow MoreRelatedThe Ethics Of The Accounting Profession1210 Words   |  5 PagesEthics are a decision one makes in knowing the right thing to do and essentially doing the right thing. They are the rules of behavior based on one’s belief of what is morally good and bad. A person may hear the word ethics and immediately think of government or the law. Not only does ethics have a role in government, it also plays a major role in business, including accounting. Schroeder, Clark Cathey (624) states that the â€Å"reason for a high level of ethical conduct is the need for public confidenceRead MoreThe Et hics Of The Accounting Profession1579 Words   |  7 PagesEthics in all forms is concerned with the good and bad, right and wrong in a situation. (Duska) In life you will be placed in a situation where you have to make a choice. These situations are not always black and white, in other words they do not have a clear answer. You will not know what your reaction would be in any given situation until you are there and have to make the decision. This is present in both our personal and professional lives. However, if you always follow the guidelines setRead MoreThe Ethics Of The Accounting Profession2258 Words   |  10 Pages The accounting profession is perhaps one of the most diverse of them all. Not only are there many different accounting functions such as financial reporting, auditing, accounts receivable, budgeting, investments, analysis, or fixed asset accounting (to name a few), but there’s the fact that accountants are needed for almost every business in every industry. So it comes as no surprise that these are positions with great responsibility. Accountants are often called the gatekeepers of a business’Read MoreCode Of Ethics And The Laws Of The Accounting Profession Essay1482 Words   |  6 Pagesthe arguments as to why a code of ethics is essential to support the regulation of the accounting profession in New Zealand. Introduction Code of Ethics display the ideal qualities that one should follow and demonstrate, in the accounting profession. It lays down the expected standards, and are based on personal characteristics and behavior. According to New Zealand Institute of Chartered Accountants Act 1996 the five fundamental principles in the Code of Ethics are integrity, objectivity, professionalRead MoreWhy Are Ethics Important in the Accounting Profession? Essay1459 Words   |  6 PagesWhy Are Ethics Important In The Accounting Profession? Sheree Fletcher CE CAPSTONE COURSE FOR THE ASSOCIATES DEGREE IDS399 September 10, 2006 What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPAs, including those working as controllers or chief financial officers for organizations. When you hear theRead MoreWhy Are Ethics Important In The Accounting Profession Essay1396 Words   |  6 PagesWhy Are Ethics Important In The Accounting Profession? What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPAs, including those working as controllers or chief financial officers for organizations. When you hear the word ethics, what is the first thing that comes to mind? Having to make the decision of doing whatRead MoreEthical Issues Faced by the Accountancy Profession Essay1747 Words   |  7 PagesEthics plays an essential and integral part in the accountancy profession. Professional conduct plays an important role in establishing public trust in financial reporting and business practise. Yet this can and has come under threat when clients and employees are exposed to the risk of fraud when accounting ethics are not adhered to. Codes of ethics are adopted to ensure the reliability, comparability and integrity of financial statements. Ethical standards exist to safeguard the fundamental principlesRead MoreEssay on The Ethical Values Held in Accounting, A Literature Rewiew1426 Words   |  6 PagesEvery profession faces a multiple of ethical challenges on a daily bases, this can be clearly witnessed in the accounting profession. The main focus of this literature review is to discuss the ethical values held in this profession and to also explore the ethical challenges that they face. Professional ethics for accountants is all about making sure that accountants carry out their duties to the highest standard possible and in a very professional manner. A code of ethics is designed to make sureRead MoreFinancial Accounting819 Words   |  4 PagesQUESTION BTN 1-3 Identify the parties potentially affected by this audit and the fee plan proposed Accounting code of ethics guides those in the profession to behave in a respectful, controlled and moral way. Clients need to have confidence in the business practices of professional accounting firms. A clear ethical code ensures that accountants practice a high standard of business that is exceptional in integrity and professionalism (Maughan, 2011). According to Schreiber (2003)Read MoreA Study On Malaysian Institute Of Accountants1416 Words   |  6 Pagesof Accountants website offers viewing of the code of ethics for practicing accountants (2010). As per the website and information therein, The Malaysian Institute of Accountants set up the Ethics Standard Board in June 2009 in order to supplement the Malaysian Government’s push to promote greater integrity and ethics. The vision of the Ethics Standard Board is to adopt high quality professional and ethical standards for the accountancy profession. Their mission is to promote good ethical practices