There are many companies that rely on financial reports prepared by accountants to be accurate and perfect to make sound business resolutions.
In addition, inaccurate financial reports resulting from immoral practices, manipulation or deception of the company’s accountants can be attributed to the loss of revenue through silver accountability, the worst, the collapse of the company.There are many benefits of ethics in accounting such as Purpose and Maintaining Public Faith. The first benefits is purpose. In addition, The purpose of financial accounting ethics is to show that legal accountants conduct their work and duties objectively and impartially. Where financial accounting ethics form the basis for legal and regulatory requirements. The second benefit is maintaining public faith.
In recent years, the transparency of accounting practices for many companies has become of great importance to the general public. Companies are now providing a clear explanation of the accounting methods used to prepare financial statements to be more ethical and trustworthy than companies that do not offer such information. Often, a more ethical and trustworthy company appears to attract many new investors. One of the important things of ethics in accounting is to develop the overall efficiency of the staff so as to lead the business entity in a successful direction continuously. Also, the employee directs himself to build efficiency in the work of all aspects with a focus and maintain ethical standards at all times. In addition, one of the most important things that appear in the behavior of the accountant is that he is neutral and sincere to organize the business during the activities faithfully and sincere.
The Ethical issues in Accounting
The burden on companies in general to succeed at high levels may put stress and pressure on accountants and create unwarranted budgets and financial statements. The ethical issue of accountants has become to maintain and communicate the true purpose of the company’s assets, liabilities and profits without succumbing to pressure from management or corporate employees. On the other hand, accountants are unethical where they can easily change the company’s financial records and maneuver numbers to show the phony images of the company’s successes
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