Article 1: The Role of Professional Ethics in Accounting and Audit
The general application for the accounting professional & ethical standards code of ethics has been seen to be effective from February 2006. This code was seen to be launched as a result of the initiative by CPA Australia and the Institute of the Public Accountants (IPA). The main aspects of the study is related to address the various types of the concepts which are seen to be conducive for the accounting profession and making significant focus on the ethics in profession from the previous literature review which has emphasized on the accounting profession as whole (Apesb.org.au 2017).
The report is intended to address the various types of the literature review of the accounting profession which has been able to review the previous studies, stating on the importance of ethics in accounting communication.
Based on a study conducted by Hadi Khani, it has been identified that ethics is a comprehensive issue taking into consideration various aspects of life. The accounting has been further seen to take into consideration the various aspects of the jobs in any discipline. Profession is seen to be related to one of the issues of the people in the society, assets and property. The ethical aspects of the principles are defined as the group of the spiritual values and principles. In case an auditor or an accountant or auditor is seen to working on a business environment which is not dependent professional ethics, then it is seen to have harmful effect on the organization involved in auditing an accounting. The study has been able to signify the importance for accounting profession. It has been further seen that the role and duty of the professional accountants to towards the society has been additionally seen that the role and the duty of the professional accountants towards the society, capital holders and the people is seen with principles of good mortality and the various types of the professional behavior and the regulations to achieve social respect, acceptance and creditworthiness for any activity in the specialized profession (Cibtech.org. 2017).
The study conducted by Vincent Onyebuchi has been able to depict how the Accounting codes of professional conduct have significant effect on the judgment and the behavior for the various types of the practicing accountants. It has been further seen that the different types of the accounting organizations has been able to revise and make amendments for the codes and periodically adapt them in the same way. It has been further seen that the changing trends in the socioeconomic, accounting information and the business needs to be understood to maintain the quality in the ethical aspects of the profession. It has been further observed that with the beginning of the century the various types of the accounting needs have been able to be depicted based on the different types of the needs to strengthen public confidence in its effectiveness and ethics. The main form of the social concern for this profession has been seen to be depicted based on the analysis of the attitudes with respect to the attitudes towards ethics in the accounting profession as stated under guideline published by CPA (Ijbssnet.com. 2017).
Article 2: Ethics in Accounting
As stated by Bakhtiari and Azimifar (2013), accountants are seen to be having several obligations which are related to the Government, shareholders, employees, creditors and the public at large. The obligations have been seen to go beyond the various scope of the immediate requirement of the client. It has been further seen that the various forms of the decisions based on the information has been seen to be related to the materiality aspect which may have an impact on the lies of the stakeholders. Henceforth, it is important to maintain an ethical behavior which is both expected and essential. The main form of the expectation from the theory has been further able to suggest on the needs of the confidence factors in accounting profession as a whole by imparting complex services. Hence, it is important that the various types of the information provided by the accountants needs to be unbiased, reliable, efficient and realistic in nature. The lack of professional ethics along with qualitative characteristics of the financial information can make the picture more unrealistic in nature for the financial reporting. Irrespective of the accounting standards and the rules without the professional ethics, the accounts will be able to provide the relevant manipulated financial report. Hence the main finding state that it is important to maintain ethics and qualitative characteristics in the reporting of financial data.
This article is based on a study conducted by Henry Ford, which took into consideration the various factors such as relevant facts, establishment of the internal procedures, ethical issues, alternative course of the action and the various types of the fundamental question related to the associated topic. The study stated that a significant conflict cannot be resolved in case there is any severe ethical issue in the accounting. It has been further seen that the different types of the consideration of the ethical issue in the accounting profession has been identified with a improper communication with the accountants with the higher authority. The study has shown the importance of the ethics such as principle of integrity, objectivity, confidentially, and professional competence. Based on the principle of integrity it has been seen that the one needs to avoid indulging in any activity which will hamper the goodwill of the organization. The objectivity principle emphasizes on the need for the accountants to avoid any bias and conflict. Similarly the confidentiality principle has emphasized on the needs for keeping the company’s valuable information confidential (Icaiknowledgegateway.org. 2017).
The study conducted by Ms. Bhumika Parmar has been able state on the importance of the ethics in accounting and finance. Based on the study it has been shown how the potential shareholders and the various types of the other users of the financial statements are seen to rely on the financial statement which uses the decision based on the investment. The stakeholders are seen to rely on the various opinions of the accountants who are responsible for preparation of the relevant statements. The reliability of the accounting information is further seen to be based on the auditors who ensure that the statements are able to give a true and fair view of the company. It is important to have the correct knowledge for the ethics which will be conducive to the accountants and auditors in overcoming various types of the significant ethical issues, thereby allowing the right choice of the auditing reporting (Worldwidejournals.com 2017).
In a study conducted by Desti Kannaiah, it has been able to suggest how the chnges pertaining to social, technological and technological aspects have affected the traditional accounting practice. It has been further stated that accounting profession is considered as an essential practice for economically developed world. At it is not possible for the present professional to survive in the industry technical knowledge alone and the accountant’s needs to incorporate professional ethics, attitudes and values. Ethics and the values along with the principle of accounting are seen to serve as the benchmark for the accounting profession. These are able to determine what is wrong and right on a universal basis each time. The study has taken into consideration the Enron/Arthur Anderson’s case which has raised several questions on the ethical aspect of the appropriate behavior for the accountants. The study has been able to emphasize on the need that several accountants needs to enrich themselves with appropriate accounting education and able to make significant improvement on the moral behavior. This will be able to restore the overall credibility of the profession. The ethical education is able to orivide the relevant insight on the conflicting principles and show the certain course of action which is seen to be more desirable to others. The ethical education will be able to provide the accountants with a more conscious decision making and process the different types of the accounting information (Researchonline.jcu.edu.au. 2017).
Conclusion
The study has been able to highlight on the ethical importance in the Accounting Profession which has been seen due to the various consideration of the stakeholders. Various studies focusing on the principles of the accounting ethics and code of conduct has been able to give an augmented focus on the necessity of it for maintain good reputation of the company. The various types of the principles have been discussed based on principle of integrity, objectivity, confidentially, and professional competence. It has been further discerned that the different types of the discussion of the accounting profession has been able to highlight on the importance of educating the accountants with a more ethical consideration. This has been seen with the benefits such as understanding of the accounting principle and effective decision making.
Apesb.org.au. (2017). Accounting Professional and Ethical Standards Board. [online] Available at: https://www.apesb.org.au/ [Accessed 11 Jul. 2017].
Bakhtiari, M. and Azimifar, M., 2013. Impact of professional ethics on financial reporting quality. Advances in Environmental Biology, 7(10 S1), pp.2862-2867.
Cibtech.org. (2017). [online] Available at: https://www.cibtech.org/sp.ed/jls/2014/01/00(25).pdf [Accessed 11 Jul. 2017].
Icaiknowledgegateway.org. (2017). [online] Available at: https://www.icaiknowledgegateway.org/littledms/folder1/chapter-12-ethics-in-accounting-and-finance [Accessed 11 Jul. 2017].
Ijbssnet.com. (2017). [online] Available at: https://ijbssnet.com/journals/Vol.%202_No._10;_June_2011/29.pdf [Accessed 11 Jul. 2017].
Researchonline.jcu.edu.au. (2017). [online] Available at: https://researchonline.jcu.edu.au/28964/1/Ethics_Edn.pdf [Accessed 11 Jul. 2017].
Worldwidejournals.com. (2017). [online] Available at: https://www.worldwidejournals.com/paripex/file.php?val=May_2015_1431346984__98.pdf [Accessed 11 Jul. 2017].
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