Importance of Accounting Ethics Training
Discuss about the Lack of Training in Accounting Ethics for Education Literature Review.
Accounting ethics is one of the important parts for every business. Every organisation provided proper training regarding all the accounting ethics so that business could be expanded future. The accounting services and structures are changing due by day thus it is important to provide proper training session so employees are aware about the advanced technology. In every business the level of ethics is very important, especially accounting ethics (Corporatefinanceinstitute, 2017). The knowledge about accounting ethics helps the accountant to resolve all the ethical issues, making correct choices and working for the benefit of the company. Training is an important part for every organisation as accounting ethics training helps in relating all the accounting knowledge with the moral issues. Training helps the employees to develop a moral obligations and responsibility (Martinov & Mladenovic, 2015). It is helpful as it tells the employees about all the possible conflicts so that all abilities needed are learned. Training helps the employee in dealing with all the uncertainties that can be faced in accounting (Crane & Matten, 2016). Thus it is important to teach all the accounting ethics before employee enter in the field.
Lack of training in accounting ethics has affected business in last years. The success of an organisation goes hand in hand with the accounting ethics. Thus, proper training needs to be provided so that independences and objectivity can be achieved. Apart from that maintaining integrity is learned through training (Googma, 2017). From last 20 years training is not considered as an important factor. Lack of training causes an issue as accountants are not aware with the functions and behaviours. Training helps accountant to create a draft regarding all the laws and rules so that they work accordingly. The accounting ethics keeps on changing thus it is important to have a work effectively training should be provided. Most of the employees in the accounting department are educated but do not have any knowledge of the field. Thus, to assure that accountant get proper knowledge training programs need to be designed. In the last years various businesses have faced scandals due to audit failures and lack of attention (Perry, Wood & Fernie, 2015). The reason behind scandals is that employees are not aware about the present rules and regulations thus they make wrong financial decision which could be loss for the company. Poor ethical knowledge in accounts leads to increase in criminal activities. The poor knowledge about accounting behaviour can harm the reputation of the company (Trevino & Nelson, 2016). Due to the poor ethical behaviour there are people who break the rules for personal benefits which are illegal on business behalf. Apart from that lack of training causes employees to commit unethical activities that could reflect wrong image about the organisation.
Negative Impact of Lack of Training
In last 20 years there are many negative impacts due to lack of training. The poor ethics in accounting practices causes business to be lagged behind. The business completely rely on the promotion techniques thus if some unethical activities are performed it will led to bad stories about the firm. Thus it can be clearly stated that ethics is an important part of business. One such case was seen in an account firm few years back. An external accountant was appointed in the company without any proper training to handle all the tax revenues and prepare accountants for the company (Lawrence & Weber, 2014) . The data of an organisation was leaked in the outside market regarding all the accounting system. Thus it is very important to train the employees regarding all the accounting ethics so that rights decisions could be made (Jennings, 2014) . Absence of training in accounting has influenced business in last years. The accomplishment of an association runs with the accounting morals. Along these lines, appropriate training should be given with the goal that freedoms and objectivity can be accomplished. From most recent 20 years training isn’t considered as a vital factor. The technologies and tools are changing with time thus in training session employees are made aware regarding all the new methods and updates that need to be considered. Absence of training causes and issue as staffs is not aware with the capacities and practices. Training encourages accountant to make a draft in regards to every one of the laws and decides with the goal that they work as needs be (Skills, 2017) . Consequently, to guarantee that accountant get appropriate learning training programs should be outlined. In the most recent years different organizations have confronted embarrassments because of review disappointments and absence of consideration. The purpose for training is to make workers aware about the present tenets and directions in this way they settle on wrong money related choice which could be misfortune for the organization. Poor accounting ethical learning in accounts prompts increment in criminal exercises. The poor information about bookkeeping conduct can hurt the notoriety of the organization (Wang & Calvano, 2015). Because of the poor moral conduct there are individuals who defy the norms for individual advantages which are illicit for business sake. Aside from that absence of preparing makes workers submit exploitative exercises that could reflect wrong picture about the association.
Training is important as in accounting to remove the issues that could rise due to tax changes, allow the employee to remain alert regarding all the work related expenses of the company, it also allows clients to have a broader knowledge about the advanced technology. It is important that training is an integral part of every organisation otherwise it can cause lack of security, efficiency and staff would work on out dated data which will cause lack of accuracy. The lack of training has affected the success and growth rate of an organisation as it led to low production of the employees. It also creates unsafe environment as in some cases accounting information is leaked which causes ineffective management. The lack of training has increased many crimes in last few years. It causes chances of data breach and it is important in an accounting firm to keep all the data confidential and integrated. I training safeguard methods need to be provided to keep all the information in confidential way. Other type of risk that exists in an accounting firm due to lack of training is making mistakes while bookkeeping. The technology is improving day by day thus training allow employees to learn dramatically about all the changes so that they can maintain all the records perfectly by avoiding all the mistakes. On the other hand to improve the overall behaviour training and development program are used to ensure consistency of the company. The performance of the employees is also improved due to the innovation of training. Accounting ethics is one of the important parts of business ethics (Apostolou, Dorminey, Hassell & Rebele, 2015). Training should be provided by every business due to the diverse range of accounting services and recent accounting collapses. The collapse causes disgrace to the business and accounting profession. The accountants in an organisation require high order of ethics as they communicate with the stakeholders and other users (Collier, 2015). Thus training help the accountant to come out of the dilemmas related to accounting background. There were scandals in which all the public officials are monitored to control all the policies and procedures to protect all the assets. To gain trust among customers ethical training is important as it builds up trust and honesty in their profession (Collier, 2015). In last few years there were many businesses that face the issue of corruption, asset misappropriation and fraud in financial statements. Training improves the overall morale of the employees; it increases the chances of promotion, increases productivity and chances of accidents (Weiss, 2014). Training is a cost effective way to make the staff aware regarding all the concerns.
It can be concluded that for every business training should be considered as an important part. Many business have suffered loss due to lack of training, thus to avoid eth chances of loss to an organisation training should be provided. Training helps the accountant to know about all the current laws and rules so that correct decisions could be made. The main reason behind business failures in last years is due to lack of knowledge regarding accounting behaviour. Thus it can be concluded that lack of ethical training increases the chances of criminal activities. Training session helps the employees to be aware about all the taxes and financial statement of the company. Thus to maintain the security of data and make sure all the operation are completed with proper efficiency training should be provided.
References
Apostolou, B., Dorminey, J. W., Hassell, J. M., & Rebele, J. E. (2015). Accounting education literature review (2013–2014). Journal of Accounting Education, 33(2), 69-127.
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Corporatefinanceinstitute.. (2017). What is Accounting Ethics?. Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-ethics/.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Googma. (2017). Why Importance Ethics in Accounting?. Retrieved from https://googma.blogspot.com/2013/01/why-importance-ethics-in-accounting.html.
Jennings, M. M. (2014). Business ethics: Case studies and selected readings. Cengage Learning.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education.
Martinov-Bennie, N., & Mladenovic, R. (2015). Investigation of the impact of an ethical framework and an integrated ethics education on accounting students’ ethical sensitivity and judgment. Journal of Business Ethics, 127(1), 189-203.
Perry, P., Wood, S., & Fernie, J. (2015). Corporate social responsibility in garment sourcing networks: Factory management perspectives on ethical trade in Sri Lanka. Journal of Business Ethics, 130(3), 737-752.
Skills. (2017). Benefits of training your staff?. Retrieved from https://www.skills.sa.gov.au/for-employers-business/training-your-staff/benefits-of-training-your-staff.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
Wang, L. C., & Calvano, L. (2015). Is business ethics education effective? An analysis of gender, personal ethical perspectives, and moral judgment. Journal of Business Ethics, 126(4), 591-602.
Weiss, J. W. (2014). Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.
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