Discuss about the Professional Communication Skills, Ethical standard is one of the key elements in accounting that ensure stakeholders use all the reliable financial entities and economic information while taking important decisions.
Voss has mentioned in his article that analyzing the importance of accounting ethics can be determined by the indicating the unethical behaviour during the accounting. Ethical standard is one of the key elements in accounting that ensure stakeholders use all the reliable financial entities and economic information while taking important decisions. It will improve the situation of the auditor because observing issues will be reduced and independence will be enhances. Besides this, the researcher has argued that ethics in professional accounting is highly important because it has both the short and long-term effects on the performance of the company of which the auditing is being performed.
Big thanks go to the Accounting Standards Committee of the Research Council of the Accountants Association, which is the governing body of the accounting standards that promote the standard usage of the auditing norms around the globe. It has introduced the Code of Professional Ethics in Accounting in order to bring in ethics in the accountants because it not only brings in the clarity in auditing but also enhances the performance of the auditor.
Ahinful, Addo, Boateng and Danquah has find in their analysis that ethics in accounting and professional accounting is highly important to make the accounting reliable and valid. According to the researchers, considerable amount of effort has been given to bring in ethics in accounting. Not only this, but also it has been mentioned by the researchers that ethics in professional account is also important, because according to the researches, throughout the history, ethics has a positive relation with the moral orders of the society.
Frauds and disconcert in accounting can lead an organisation on the verge of destruction. Corporate transparency, money culture, behaviour and corporate values along with legalistic culture of the business organisation can lead to fraud and it has to be reduced if the firm wants to grow at a large scale. Some of the relevance pointed by the researcher that can be gained by incorporating ethics in accounting has been mentioned below:
- Clears the concept of the wrong and right of accounting professionals
- Ethics makes the professional accountants accurate and efficient in their duty
- Incorporating the ethics helps the accountants to think in long run
- Aids the accountants to build inner strength
According to the sfmagazine.com, there should be codes of professional conduct, which will help the brand to introduce ethics in its accounting leading to less number of frauds and higher effectiveness in the accounting.
When it comes to accounting, then ethics is a critical issue because it not only makes the accounting task complex, moreover it is related with the social as well as psychological factors of the society. During the 2000, there were various high profile accounting frauds in US leading to the crippling of the US economy. Thus if an organisation does not take care of its accounting and introduce ethics in it, then the brand may face serious fraud issues leading to shutting down.
Peer reviewed Journal:
Daff in his journal, stated that accounting is essential part of every business, however during the last twenty years it has been noted that technical and scientific developments have lost their trust in the capability of the auditors. Owing to the lack of ethics has lead to the higher cases of fraud and improper calculations in the auditing that has caused the loss of the trust. Thus, according to the Daff, ethics is highly important in every organisation because it provides guideline to the members of the accounts and finance departments and aids them to comply with the organisational goal.
Moreover, the researchers argue that ethics in professional accounting helps the managers to introduce practicable rules and feasible policies. Unethical behaviours not only harm the trust of people, additionally it damages the performance of the firm’s capital market. The researchers argue that in economical cycle, managers are the main motivators and the existence of ethics in accountants helps the firm to grow its investment activities and economical performance.
Yanik, Yildiz and Gunce argues that ethics in business leads to lower productivity and business frauds leads to the lower ethics in the organisation and those both of them cannot be reduced simultaneously. Accounting helps to determine the structure of asset-resource and profitability of a firm and if there is ethics in business, then the workers has to follow the guidelines of the brand, which will certainly reduce the efficiency of the accountant, leading to higher accounting bill on behalf of the brand.
Thus the journal argues that, though there need to be some sort of ethics in the accounting but it should not decide the way of accounting. This article argues against the common belief that ethics should be there in the accounting to make it effective and accurate. However, it has its own set of ideas that can be discussed to find out whether ethics effect the accounting time and efficiency or not.
Voss, G., 2017. Certificate of Ethics in Accounting and Professional Independence of Accountants. European Journal of Economics and Business Studies, 9(1), pp.212-220.
Ahinful, G., Addo, S., Boateng, F. and Danquah, J. (2017). Accounting Ethics and the Professional Accountant: The Case of Ghana.
Verschoor, C. (2017). Ethical Behavior For Management Accountants. SFmagazine. [online] Available at: https://sfmagazine.com/post-entry/january-2016-ethical-behavior-for-management-accountants/ [Accessed 18 Dec. 2017].
Daff, L. (2012). The ethics application. Accounting, Auditing & Accountability Journal, 25(3), pp.570-571.
Yan?k, A., Y?ld?z, F. and Günce, N., 2013. A Study on the Business Ethics in Accounting and the Perception of Ethics by Professional Candidates. International Research Journal of Finance and Economics, (113).