What is ethical accounting? The concept of accounting ethics involves ethical and value-based judgments and decisions, and accountants or accounting firms confront each other in their practice every day. Due to their job nature as business managers, shareholder and public financial information communicators, and accounting and auditing of business entities, accountants and accounting firms maintain the highest standards of transparency and ethics. Research and the information they convey. Accounting can be used to study how and why a business succeeds or fails, but the most important thing is that it is a public service; those who practice it must make judgments and decisions, sometimes replacing the interests of customers and benefiting the general public. .
Failure to apply ethical standards to accounting creates opportunities to manipulate facts and information, and if used for misleading, may result in someone making a false excuse to invest, or the company fraudulently representing its shareholders on its finances. Most importantly, the public can trust accountants and accountants because their financial future and the financial future of their home or business may be threatened.
Why do accountants and accounting firms must be ethical?
Over the years, several large-scale accounting scandals have occurred in the United States and throughout the world, resulting in billions of dollars in losses for private and public shareholders, and the loss of large companies and accounting firms due to forged or incorrect information. A company that invests in funds. The Enron scandal may be the most recent and most obvious example of the widespread negative impact of unethical accounting, including a loss of $25 billion in shareholder assets, the closure of Arthur Anderson auditors, and the loss of 85,000 jobs as a result of unethical behavior. The company was dissolved.
Ethical accounting is important not only for reliable information about private companies or individuals about their financial situation, but also for providing the public with a transparent valuation of listed business entities. Ethical accounting can help eliminate serious problems that arise when publishing incomplete or incorrect information about a business or individual, saving money and work, and helping to improve the stability of financial markets.
Orignal From: Accounting Ethics - The Importance of Ethical Practice in Business and Personal Finance
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