Importance Of Ethics In Accounting

Abdolmohammadi, M., Fedorowicz, J. and Davis, O. (2009) findings indicate that despite the attention in recent years to the importance of ethics and social responsibility in the accounting curriculum and the profession, the ethical reasoning scores of those attracted to public accounting seems to have actually deteriorated over the past 15 years. This outcome suggests that there is a need for improved training and education of public accountants in ethical reasoning and decision making. The report concluded that ethical reasoning increases with age and education, but education is the primary factor in this relationship.

Abdolmohammadi, M., Fedorowicz, J. and Davis, O. (2009) concluded from their literature that higher levels of ethical reasoning are preferred over lower levels, especially in a profession like accounting where public trust is crucial to the survival of the profession. Codes of ethics are adopted to protect both the profession and the public and aim to influence accounting professionals to follow high levels of moral behaviour that contribute to the value of the accounting profession. In recognizing the importance of ethics to the accounting profession, many colleges and universities have incorporated ethics into the accounting curriculum in recent years to meet industry demands.

Somers, M. (2001) found that a growing interest in codes of ethics is evident in organizations over the past few decades. In his article, Somers outlines the influence of codes on employee behaviour in organizations. He states the effects of the growing adoption of codes of ethics in organizations is not being addressed as unethical perceptions and behaviour continue.

Somers carried out a survey of a sample of management accountants in th...

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...ough just to have a code of ethics in place but it needs to be reinforced and put into practise. In this way threats can be minimized and safeguards put it in place to ensure temptation does not occur. Ethical decisions and perceptions are made on a personal, societal and professional level. I feel all three areas need to be addressed while attempting to improve ethical standards in accountancy reporting, management, governance and disciplinary terms. The very nature of the accountancy profession means a lot of trust is placed in their hands as their judgment and guidance is relied upon by clients, fellow colleagues and the general public.

Yet it is clear that ethical practises are not being complied with and I feel that better education and training to make accountants aware of ethical dilemmas and the guidelines in place to help them reach the right judgement.