Importance Of Code Of Ethics In Accounting

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The profession of accountancy has become the important pillar in the organizations and helping the business community of the world to sustain value and growth. Accountants are working in wide variety of roles and across all sectors of the economy; therefore the success of this profession is very important for the efficient working of the capital markets and economy. However, this profession is in continued pressure for performing their services competently as well as ethically. Therefore the accounting bodies and regulators of the world have increased their supervision of this profession. Due to this changing environment, accounting bodies in Australia have also taken steps to ensure the professional accountants should perform their services ethically. In this report we are discussing how what are the fundamental code of ethics for professional accountants working in Australia and what are the threats and safeguard majors for these codes of ethics. In the last part of this report we have discussed a case study in which employees of the global company have been involved in a ethical wrongdoing and what are its consequences.

2. FUNDAMENTAL PRINCIPLES OF CODE OF ETHICS

The integrity of the profession is dependent upon the ethical conduct by the members of the profession. Without proper guidelines of the ethics, professionals may try to create their own standards which may not be in the best interest of the profession. Therefore the accounting bodies in Australia established an independent body, Accounting Professional and Ethical Standard Board (APESB) in 2006. This independent board was responsible for the development of the code of the ethics for professional accountants in Australia and to further enhance these ...

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 Business and professionals should always respect other people culture and values and do not engage themselves in anything which is ethically incorrect.

 Those who break the standards should be given strict penalties and cancellation of their license.

 Organizations should be developed which would help in global ethical problems and try to create global ethical standards for accountants and other professionals.

7. CONCLUSION

Recently, after the collapse of big corporations, integrity of the accounting profession has comes under greater scrutiny. Therefore in order to enhance the credibility of the profession, accoutnig bodies of the world is putting highest importance on the ethical conduct of its members. Without maintenance of the highest ethical standards, the recognition and creditability of the accounting profession is not possible.

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