The Ethics Of The Accounting Profession - 2258 Words

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’ financial system and rightfully so! They are the ones who are responsible for keeping numerous records and backup of all financial transactions. Accountants are the ones who must keep a watchful eye on the financial health of an organization and who report the financial position with clear and unadulterated statements. Unfortunately, there are those who for a number of reasons are tempted and pressured into manipulating accounting entries so that the financial reports do not accurately reflect the company’s financial position. One of the largest problems accountants experience today is the pressure to commit fraudulent accounting practices. There are a variety of factors involved in the likelihood of fraud, but certain circumstances seem to be better predictors of the possibility of fraudulent reporting. In this paper, we will examine one of the largest hallmark scandals in history. Using this example as the backdrop, we will then discuss the circumstances in which the riskShow 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 h igh level of ethical conduct is the need for public confidenceRead MoreThe Ethics Of The Accounting Profession1204 Words   |  5 PagesEthics 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 confidenceRead MoreThe Ethics 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 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