FABULOUS GROUP –ACCOUNTING ETHICS – 27 GURBAJ SINGH (A), 153 PUNEET LAKHI (C), 204 AMANPREET KAUR (C)
INTRODUCTION
“Accounting ethics” is a field of professional ethics which pertains specifically to accounting. Whether accountants work in public or private practice, they are expected to adhere to ethical standards which are designed to ensure that accountants behave in a way which is ethical and consistent.
Ethics in accounting is of utmost importance to accounting professionals and those who rely on their services. Certified Public Accountants (CPAs) and other accounting professionals know that people who use their services, especially decision makers using financial statements, expect them to be highly competent, reliable, and objective. Those who work in the field of accounting must not only be well qualified but must also possess a high degree of professional integrity.
{Gurbaj Singh MB-27(A)}
DISCUSSION
Ethics in accounting has been traditionally discussed from the perspective of the work carried out by individual accountants and auditor. In addition to knowledge of rule-based techniques of preparing financial statements accountants "should know and understand the ethics of the profession”.
Essence of Accounting Ethics
Accounting ethics in the field of accounting refers to the guidelines that a professional needs to follow while practicing accounting. Just like the professionals in the field of medicine or law, an accounting professional also needs to strictly adhere to the ethics that have become a norm in accounting.. An accounting professional becomes a member of organizations like IMA, IIA and CIA; they are directed to follow the code of conduct and ethics.It is the responsibility of the accounting professionals to stick to the code of ethics.
What Are the Benefits of Having a Code of Ethics in Accounting?
Good business ethics is the backbone of every business. It brings much goodwill to a Company. Some of the benefits that accrue a co. for its sound business values are:
1. Profitability:The dividend of ethical business operation is based on sound business value.
2. Group concern is assured: Every business entity is to be assured for a longer time. Ethical business practise is the way for going concern activity.
3. Better Professional Environment:An accounting code of ethics that is enforced at public accounting firms or company accounting departments can ensure that individuals working with financial information act in the highest ethical manner possible
4. Increased Reputation:Public accounting firms or companies may discover that they have a more positive reputation in the business environment than companies without a code of ethical conduct.
5. Standards for Employee Discipline:A code of ethics can allow companies to develop disciplinary practices for employees who violate the ethical standards when conducting daily accounting functions.
{PuneetLakhi MB -153(C)}
CONCLUSION
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. It is important to understand that business and accounting ethics as a part of social responsibility .It is the responsibility of all Professionalaccounting organizations to follow the standard set of ethical guidelines .It is the family, society, schools, colleges and professional organizations that carries on the continuous process of embedding ethics in a person.
“Upload good and sound business ethics in your business operation and watch your business soar.”
http://www.google.co.in/url?sa=t&source=web&cd=2&sqi=2&ved
http://www.google.co.in/url?sa=t&source=web&cd=8&sqi=2&ved=0CEwQFjAH&url=http%3A%2F%2Fwww.econ.upf.edu%2Fdocs%2Fpapers%2Fdownloads%2F749.pdf&ei=MmqcTszkBMX4mAWkiPmQAg&usg=AFQjCNH0FeQtoFLSCjqA3veXypgzTguf5g
{AmanpreetKaur MB -204(C)}
Submitted to: Prof. Gurdeepak Singh
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