Importance Of Professional Ethics In Accounting
3.1 Introduction
Professional ethics relates to the fraud scandals that had taken place in many companies around the world and had caused substantial damage to the society and the economy. Helps (1994) stated that included in these fraud scandals is the Enrol scandal as everyone know that Enron was involved in unethical earnings manipulation that included hiding debt in complex statement of financial position and incorrectly recording company’s expenses as asset. Consequently, the unethical behaviour at Enron, by those charged with governance destroyed the ability of a company to function. The questions had been raised about the professional ethics of the corporations in general and in particular the profession of accountancy due to these scandals.
…show more content…
(2003) sufficient consideration to professional ethics is essential in accounting and sufficient ethics should be part of the accounting training. After the Enron and Arthur Anderson collapse incident the need to teach accounting ethics increased, because the accountants had to understand the accounting ethical standards and the methods used to enforce these ethical standards of accounting. Further, Stephen Loeb (n.d.) stated that the accountants need to have both clear knowledge and understanding in applying these accounting ethical standards in a real-world situation. Therefore, Stephan Loeb (n.d.) recommended that accounting students’ needs to be taught well enough until …show more content…
IFAC main role in the accounting profession is to establish international standards for ethics, quality control, government accounting, ethics and independence, education and auditing. The following boards are the IFAC’s standard-setting:
• International Auditing and Assurance Standards Board
• International Public Sector Accounting Standards Board
• International Ethics Standards Board for Accountants
• International Accounting Education Standards Board
International Federation of Accountants develops, adopts and implements ethical standards of high quality for the professional accountants through one of its standard-setting board, namely International Ethics Standards Board for Accountants (IESBA).
IESBA’s long term main objective is to converge the code of ethics rule, which is effective for professional accountants, with the standard-setters and regulators published standards. The IESBA’s code of ethics for accountants includes three main parts (IESBA ,5):
• General Application to the Code
• Professional Accountants in the Public Practice
• Professional Accountants in
Aicca Rule 504
488 Words | 2 PagesUnder a research concerning the incorporation of public accounting, researchers have found articles related to it. AICPA once opposed in the incorporation of public accounting in reasons that it may fall under the management of non-accountants. (The CPA Journal Online) When Rule 505 of Code of professional Conduct was already existing (Practice of Professional Corporation), issues arises about the protection of an accountant as shareholder in the corporation. On October 1990, the Council of the AICPA amend Rule 505 of the AICPA Code of Professional Ethics to make it possible for CPAs to practice as "limited liability corporations.
Wgu Gke2 Task 2
277 Words | 2 PagesC., Fraedrich, J., & Ferrell, L. (2015).Business ethics: Ethical decision making & cases (10th ed.). Mason, OH: Cengage. O 'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New
FASB Accounting Standards Codification
1827 Words | 8 PagesThe FASB Accounting Standards Codification (FASB Codification) is the only source of authoritative GAAP apart from SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update to inform people about changes to the FASB Codification, which includes changes to non-authoritative SEC content. In relation to International Financial Reporting Standards (IFRS), after a new IFRS Standard is issued and before it becomes effective, the International Accounting Standards Board (IASB) helps stakeholders to understand the new Standard's principles very well. The activities of the board promote greater consistency in stakeholders' understanding of new Standards as the practice develops, which supports
Eight Lenses In Business Ethics
1306 Words | 6 Pages1. Introduction – ethics – what are they? Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil. Ethics, culture, morals – are bind together, they are embedded.
Wells Fargo's Ethical Ethics Of Wells Fargo Financial Corporation
1347 Words | 6 PagesThe implementation and education of the ethical decision-making model promote moral awareness and company values that can mitigate ethical dilemmas to an extent. The aftermath was devastating for Wells Fargo not just economically but for its image. The corporation can introduce this model in training courses for new hires and current employees. Also ensuring management comprehends the prominence of ethical decisions and are aware that they are the wheels of the car, therefore, lead by example. If the corporation initially had prioritized ethical values and decision-making evaluations at every level of the business, this scandal could have been prevented at least its magnitude.
Professional Scepticism In Auditing
860 Words | 4 PagesThe professional judgement required is influenced by some professional traits such as the auditor’s experience and capability of the auditors training. In additional to the professional traits influencing the auditor’s judgement, the auditors is also influenced by behavioural and ethical traits. Auditors have a responsibly to ensure that ethical standards are upheld, ensuring the social exceptions of auditors
Wells Fargo Ethical Theories
468 Words | 2 PagesRecently Wells Fargo’s scandal of creating phony accounts has raised ethical concerns in the corporate world. Wells Fargo employees opened more than two million unauthorized bank and credit card accounts to meet sales projections. The company was charged with huge fines and earned a bad reputation that will take years to rebuild. According to the Deontological perspective on ethics least some acts are morally obligatory.
Volkswagen's Corporate Social Responsibility
1858 Words | 8 PagesThe selected corporation is Volkswagen (VW), a German car manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Established in 1937, Volkswagen is the top-selling and namesake marque of the Volkswagen Group, the holding company created in 1975 for the growing company, and is now the second-largest automaker in the world (Wikipedia, 2016). Volkswagen’s corporate website is http://www.vw.com/. According to the International Ethical Business Registry, there has been a dramatic increase in the ethical expectations of businesses and professions over the past ten years. Increasingly, customers, clients and employees are deliberately seeking out those who define the basic ground rules of their operations on a daily basis.
Examples Of Unethical Behavior In Business
1191 Words | 5 PagesA) Introduction Unethical behaviors in business affect everyone since you either work in the field or are a consumer of its services. Unfortunately, almost every company usually has individuals who act unethically whether it is for their personal benefit or for the sake of the company they work for. Unethical behaviors in business might be as simple as using company property or funds for personal gain to inside trading and financial fraud. According to The Chartered Institute of Management Accountants, nearly one third of business professionals feel pressured to compromise their ethical standards and are increasingly pushed towards unethical behavior. Moreover, “misconduct is common and accepted by business services professionals, the integrity of entire economic systems is at risk”, states Jordan A. Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow law firm.
Ethics And Moral Issues In The Enron Scandal
931 Words | 4 PagesIn this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .
The Importance Of Business Ethics In The Business Environment
1813 Words | 8 Pages“Title Rhenzl” Business is an economic activity whereas its concern is continuously and constantly producing and distributing goods and services to market in order to provide and satisfy human needs, wants and demand. Meanwhile, ethics had been studied by the philosophers for about 2500 years, since the time of Plato and Socrates. As of today, ethics is considered as the moral standards that an individual is relying upon when making a judgment and decision.
Importance Of Ethics And Integrity In The Workplace
1324 Words | 6 PagesIntroduction Nowadays, ethics and integrity has played a vital role in our daily lives especially in the workplace. Ethics is defined as being concerned with judgements involved in the moral decision, whether it is good or bad, true and fair (Velasquez 1999); whereas, integrity is defined as the honesty and having strong moral principles in reporting. The purpose of this assignment is to find out and understand how importance of ethics and integrity has played in the business and workplace. Responses and Evidences Why compliance with Ethics and Integrity?
Ethical Issues In Accounting
1710 Words | 7 PagesThese scandals have made the morality of accountants and businesspeople. The main contributors of business ethical standards are the accountants. The accounting profession has a duty to play so as to reduce the corporate scandals. They should make sure that there is proper financial management, quality audit, ethical standards improvement and that the governance regimes are strengthened
Literature Review On Unethical Behavior
2877 Words | 12 PagesReview of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.
The Importance Of Business Ethics In International Business
1039 Words | 5 PagesBasically, ethics are at their essence which is it is the moral judgments about what is right and what is wrong. Business ethics is focusing on examine the policies and conduct within the context of commercial enterprise in an organizational as well as in an individual level. In business, the ethics in business is an applied ethics where professionals and researchers use principles and theories to solve any ethical problems that exist in business. At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, international business ethics take center stage as a major concern of the modern era.
More about Importance Of Professional Ethics In Accounting
Aicca Rule 504
488 Words | 2 PagesWgu Gke2 Task 2
277 Words | 2 PagesFASB Accounting Standards Codification
1827 Words | 8 PagesEight Lenses In Business Ethics
1306 Words | 6 PagesWells Fargo's Ethical Ethics Of Wells Fargo Financial Corporation
1347 Words | 6 PagesProfessional Scepticism In Auditing
860 Words | 4 PagesWells Fargo Ethical Theories
468 Words | 2 PagesVolkswagen's Corporate Social Responsibility
1858 Words | 8 PagesExamples Of Unethical Behavior In Business
1191 Words | 5 PagesEthics And Moral Issues In The Enron Scandal
931 Words | 4 PagesThe Importance Of Business Ethics In The Business Environment
1813 Words | 8 PagesImportance Of Ethics And Integrity In The Workplace
1324 Words | 6 PagesEthical Issues In Accounting
1710 Words | 7 PagesLiterature Review On Unethical Behavior
2877 Words | 12 PagesThe Importance Of Business Ethics In International Business
1039 Words | 5 Pages