Ethics of Accounting

Ethics of Accounting The ethics of business is currently a high up profile issue. This may be both due to the increase social pressure on companies to adopt a more socially responsible approach to doing business and more specifically, to media insurance coverage of some sensational business collapses such as BCCI and Enron. exact analysis of these events had subsequently lead to the questioning of the morality of business community and women in general and accountants in particular. Many experts argue that accountants seduce been the main contri only ifors to the slouch in ethical standards in business. The decline in ethical standards in the profession of accounting has led many experts to re examine the type of education formation that produces accounting professionals who, consciously or otherwise, appear to act unethical. It is extremely important that accountants and accounting professionals be very ethical in their practices due to the very nature of their profession. Many people especially managers and especially stockholders rely on accountants to present a overt and correct picture of the organizations finances. The stockholders decision to reinvest in a company will depend on the accounts that atomic number 18 presented to them.

This in effect means that the accountants are indirectly but very prominently responsible for whether the investors gain or support money. This great responsibility should mean that accountants act as ethically as possible but the reality is far different. Since accountants cannot invariably be trusted to be morally responsible for the pull in they produce, organizations need to have strict internal controls in place. home(a) controls are all measures taken by an organization for the purposes of (a) defend its resources against waste, fraud, or inefficient use; (b) ensuring the reliability of accounting info; (c) securing compliance with management policies; and (d) evaluating the performance of all employees, managers and departments within the... If you require to get a full essay, order it on our website: Orderessay

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