Ethics in Accounting - 938 Words

Ethics and Legal Responsibility in Accounting The profession of accounting has become spotlighted by the events in recent years including namely Enron. The ethical behavior of businesses is becoming increasingly scrutinized at every turn. Thus it is important to specify the nature of conducting accurate and ethically in accounting and how this can be of subsequent benefit to the company as well as the business world in the long run. The definition of accounting according to Webster s dictionary is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. The purpose of accounting is to provide financial and business information to possible investors,†¦show more content†¦The SEC requires the reporting of financial statements by businesses and maintains the requirements needed to be met in these statements. The SEC also has the power to enforce the rules and laws within its jurisdiction. Without the express ability to meet out penalties the SEC would not have the same power as it does maintaining this ability. Finally, the PCOAB is a private organization formed to oversee the auditors in the public sector. The PCOAB provides standards and is ever evolving regulations to provide fair audit reports. These three companies in action provide the regulatory and legal boundaries for accounting. They maintain the integrity of the accounting profession as well as give investors security so that they can invest their monies in different companies thereby they effectively aid the flow of business and without them the business world may not be a functional concept since outside investors would rarely feel safe giving money to any company. The accounting profession and all that encompasses it have a vast and far reaching effect in the world of business. The purpose of accounting is to provide accurate financial information so that management and investors could have pertinent information to make valuable decisions. Thus to misconstrue the figures or to act in a manner that is unethical could result in the loss of others monies and their livelihoods as well as retard the flow ofShow MoreRelatedAccounting Ethics1315 Words   |  6 PagesAccounting Ethics 2 1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. The ethical breaches in recent times, Weygandt, Kimel, Kieso( 2012) researched that â€Å"financial press open full articles and documents facts about financial scandals at Enron, WorldComRead MoreEthics in Accounting1196 Words   |  5 PagesEthics in Accounting By Pace University – New York Accounting for Decision Making, MBA 640 Fall 2011 Required Research Paper Page 1 of 11 Table of Contents Number Content Page Number 1 Introduction 3 2 Ethics in Accounting 4 3 Enron Scandal 6 4 Satyam Scandal 8 5 Conclusion 10 6 References 11 Page 2 of 11 Introduction †¢ What is â€Å"Ethics†? Ethics, also known as moral philosophy, is a branch of philosophy that addresses questionsRead MoreAccounting Ethics677 Words   |  3 PagesAccounting Ethics: Ethics is a term that is commonly used to describe a code or moral system that serves as a criterion for assessing right and wrong. Professionals operating in the business world usually face ethical dilemmas, which are situations where a person or group is faced with a decision that tests the moral system or code. While most of these dilemmas are easy to identify and resolve, they come with temptations that test a persons or groups ethics. Similar to others operating in theRead MoreThe Ethics Of The Accounting Profession1210 Words   |  5 PagesEthics are a decision one makes in knowing the right thing to do and essentially doing the right thing. They are the rules of behavior based on one’s belief of what is morally good and bad. A person may hear the word ethics and immediately think of government or the law. Not only does ethics have a role in government, it also plays a major role in business, including accounting. Schroeder, Clark Cathey (624) states that the â€Å"r eason for a high level of ethical conduct is the need for public confidenceRead More Accounting Ethics Essay1247 Words   |  5 Pagesway to project that image, and there is a certain amount of truth to it. Not all accountants are anal-retentive little wimps who cannot get a date. Many of them are quite articulate. Some are quite lovely, in some schools, more than half of the accounting majors are women. Also, not all CPAs are squeaky clean and respected for their honesty. Some are quite dishonest and are putting a black mark on the image of the entire profession. There is one area where the CPA profession has fallen short of protectingRead MoreAnalysis Of Accounting Ethics935 Words   |  4 PagesThe accounting world has changed dramatically during the last two decades, yet at the same time its core responsibilities remain the same as it has in previous eras. Ethically speaking, company accountants and outside accounting firms have been at the crux of many of the disasters that have befallen major corporations both in America, and globally. The word Enron is a prime example of a company becoming a hiss and a byword, and the lack of ethics evidenced in that case is quite blatant. One reportRead MoreEthics Of Business And Accounting1361 Words   |  6 PagesE thics in Business and Accounting Ethics are not simply something, which is embodied an individual s conviction or considerations, yet that of what is best for a conglomeration or organization. Moral choices good to go are took care of ordinary, and generally conglomerations have a made set of principles to encourage manage administration to make the right choice. Moral choices are not dependably simple and may require some supposed as to the responses or effect of a choice. There are establishedRead MoreImportance of Ethics in Accounting1065 Words   |  5 PagesRunning head: IMPORTANCE OF ETHICS IN ACCOUNTING Importance of Ethics in Accounting Everest University Importance of Ethics in Accounting Accounting fraud is common but is not as trivial as the common cold; a typical organization loses annual revenues of nearly 5 percent to fraud. In addition, almost one-quarter of reported fraud is exceeding $1 million dollars. The accounting industry is constantly growing and changing. Consequently, difficult decisions have to be made every day. Read MoreAccounting Ethics : Accounting Principles And Guidelines1337 Words   |  6 PagesChristine Lewis Intermediate Accounting Kim Hurt Ethics Paper Accounting Ethics In accounting, ethics are based on a commitment to honesty and objectivity. Financial reports are to be shown in the clearest and most accurate way possible. Investors, creditors, managers, employees, and even customers need to be confident that their accounting professional is honest and consistent with accounting standards, otherwise there is a loss of trust and an increasing chance of fraud. Pretty much everyRead MoreThe Ethics Of The Accounting Profession1204 Words   |  5 PagesEthics is a decision one makes in knowing the right thing to do and actually doing the right thing. They are the rules of behavior based on one’s belief of what is morally good and bad. A person may hear the word ethics and immediately think of government or the law. Not only does ethics have a role in government, it also plays a major role in business, including accounting. Schroeder, Clark Cathey (624) states that the â€Å"reason for a high level of ethical conduct is the need for publi c confidence