It requires the firm to have a set of values, core policies, and principles to support the effective ethical behavior (p. 68). Introduction. The author studied the ethics code, effective communication, ethics program, and ethical leadership to determine the ethicalness of an accounting firm. Usually, every accounting firm strongly believes that their firm is highly ethical. The researcher indicated that continuous efforts are necessary to maintain the high level of ethics in the organization (p. 68).
Purpose of the Code The Company is committed to conducting business ethically and in accordance with all laws and regulations. The Company’s Code of Ethics is a guide to help our employees contribute to the culture of integrity by establishing principles for how we as employees conduct our daily business. Each employee’s acknowledgment and adherence to the codes is a condition of employment. Ethical principles are collective standards of right and wrong. These ethical policies will set the standard of behavior that our company and employees should and should not engage in.
For accounting and finance professionals it is extremely important to be ethical in their practices due to the very nature of their profession. The nature of accountants‘ work puts them in a special position of trust in relation to their clients, employers and general public, who rely on their professional judgment and guidance in making decisions. These decisions in turn affect the resource allocation process of an economy. The accountants are relied upon because of their professional statues and ethical standards. Thus, the professional and ethical conduct is a key to maintaining confidence of clients and the public is professional and ethical conduct.
It is highly essential for accountants and business professionals to maintain a standard of ethical conduct in the workplace as the nature of their work places them in position of trust. (Senarante, 2011). Accountants have the responsibility to ensure that their duties are performed in accordance with the five fundamental principles set out in the Code of Professional Ethics such as integrity, objectivity, professional competence and due care, confidentially and professional behaviour (Cunningham et al. 2014). Accountants are expected to be reliable and trustworthy.
The International Federation of Accountants (IFAC) provides professional ethics and ethical codes for Accountants. They include standards of behaviour that are designed for both practical and idealistic purposes. In the accountancy profession, professional accountants should follow a set of rules and values to be able to execute the objectives needed to the highest standard of so called professionalism. IFAC requires throughout the world that accountancy bodies should issue codes of conduct not less rigorous than its own. Members are required to examine the spirit of the code as well as the specific requirements.
If anyone is to break the code of ethics you must report it promptly. 1) Up keeping Accurate Business Records Each employee will be responsible to keep accurate business records. Keeping accurate business records is not only the law but also very important for our own good. We must also keep accurate records for our clients and members. 2) Respecting Clients and Members Each employee must treat every customer with the upmost respect at all times.
Ethical values can have different sources, such as religion, history, personal experience, etc. All of them have the same ethical basis (p. 48). The goal of ethics in accounting is to guide businesses or clients using the code of conduct, and stay motivated by the trust of citizens. The researcher believed that the success is measured by the personal integrity of accounting professionals (p.
Furthermore, I acknowledge the idea that ethical dilemmas will occur, but I am committed to my “Personal Code of Ethical Values” (as seen above) that represent my desire to live ethically in every facet of my life. I strive to embody integrity in everything that I strive to do. This means that each and every one of my actions must encompass and demonstrate the values I possess, no matter what the context of the situation. Additionally adhere to high moral principles and professional standards put forth by the American Institute of Certified Public Accountants. Secondly, I believe that it is important to be honest and respectful.
Cisco is an American corporation that manufactures and sells networking equipment. They strive to be honest and have the highest integrity of any company. To have that title for a company, there must be rules and regulations to make everything run smooth. They have to be loyal, follow the law, and keep great financial records. They also have to know how to avoid employee, shareholder, and business partner misconduct in order to keep their great reputation.
OBJECTIVE All company needs to have an appropriate and effective internal control environment to ensure that the company is managed and controlled in a sound and practical manner. The internal control environment system is recognize as the main cause of the business.The presence of smooth internal control environment is necessary for well achieving the business objectives.According to O’Leary et al (2006) an adequate system of internal control is considered as critical to good corporate governance. Organization need effective controls in operating performance directions and increase revenues.Internal controls also help firms prevent operating losses resulting from noncompliance with law and regulations.