Friday, March 8, 2019
Importance of Accounting Ethics Essay
Ethics is a branch of philosophy that judge human beings on wrongs and rights concerned with the nature of value and the standards by which human actions can be judged .The term is also applied to any system or speculation of moral values or principles. Accounting is the mechanism that offers information regarding the pecuniary position of the organization or chore. This type of information is critical to investors as it provides them with important and detailed information that could turn out to be the engender out factor as to their decisions to invest or not to invest in a particular organization. Accounting in business concern is one of the roughly important departments. Ethical and professional method of chronicle forms a clear fiscal image of a business, and allows managers to make informed decisions, keepsinvestors abreast of developments in the business, and keeps the business profitable. (Osanyin, 2008) In news report, there is the professional ethics that guides t he accounting profession.Accountants ar judge to adhere to the set ethical standards which atomic number 18 designed to ensure that they expatriate in a way which is ethical and consistent. For most professional accounting organizations, accountants are certified in order to comply with ethics and they are stripped off their certificates if they fail to abide with ethical codes. Therefore, it is common to find unethical sort in accounting profession.Some of the forms of unethical behavior in accounting are, Providing erroneous information regarding expenses incurred in business self-aggrandizing out false information on expenses purposely is unethical. In accounting profession, the accountant should always provide the emend information regarding any expenses as failure to do so make the financial status of the business to be false. This affects the profit and loss reports of the business and consequently affecting the surgery of the business in the long run.Exaggerating busi ness revenueIn accounting practices, all revenue in the business should be reported properly as this can hurt investors in the company, the tax payers who may be caught up in governments bail outs and the workers at the company. By showing the correct revenue generated, this reflects the true financial position of the company.Misuse of business monetary resourceAccountants access most of the funds in the organization and it is unethical to misapply them. This can lead to the closure of the business and eventually leads to the loss of jobs and investments. Accountants should never misuse business funds and if they use it should be reported in the books of accounts and debited clearly. Some of the reasons why ethics is important in accounting are- Confidentiality People need to have confidence in accountants and the services they provide. trial to do so leads to uncertainty in investors, shareholders and the work force in the organization. If the quality of the accounting is unpro fessional this leads to low confidence with the stakeholders of the organization.Professional competency Ethics in accounting ensures that the accountants maintain professional knowledge and skills at the level required to ensure that a client or employer receives efficient professional service. This is exhibited by acting diligently and in accordance with relevant technical and professional standards when providing professional services. So as to maintain fair play and regulations governing the accounting profession, accountants should always observe the professional ethics in their profession.