Implication of Ethics on Accounting Work Practice Assessment Answer
The accountant and financial professionals are the key persons who are indulged in recording the financial data in the books of account. In this essay, argument related to the need of accountant and financial professional to behave ethically in the corporate world has been discussed. Ethics is considered to be moral principles that governs or sets up individual’s behaviour and way of working. Accountants are responsible to maintain the transparency in the books of accounts. This essay reveals the key understanding on the implication of the ethics on the accounting work practice of the accountants and financial professionals.
Accountants and finance professionals should behave ethically because it creates client’s trust, helps maintain professional reputation and it helps avoid financial disasters.
Accountants and finance professionals should behave ethically because it helps maintain professional reputation.
Accountants and finance professionals should behave ethically because it helps maintain professional reputation
Accountants and finance professionals should behave ethically because it helps avoid financial disasters.
Reason / Paragraph 1:
Accountants and finance professionals should behave ethically because it creates client’s trust. It is argued that all the accountants while recording the financial transactions will act ethically and follow the fundamental ethical guide and principles. Nonetheless, Accountants and other financial professionals are the major person who are responsible for the scandals and scams in the organization (Duska, Duska, & Kury, 2018). Therefore, it is their prime duty to align their accounting and financial work with the client’s trust (Duska, Duska, & Kury, 2018).
Support the position
They are liable for the credibility of the transactions recorded in the books of accounts and creates client’s trust. Integrity is important fundamental element of the accounting professions which requires accountant to work honestly, candid and fortnight with the available client’s information (Mintz, & Morris, 2008). In case of Woolworths Company, accountants had to face ethical issue in the reporting framework and shows round off figures in the financial transactions. However, by complying with the ethical code of conduct accountants of company kept transparent and gave the notes to accounts for the same (Triyuwono, 2015). .
Reason / Paragraph 2:
Accountants and finance professionals should behave ethically because it helps maintain professional reputation. Ethical code of conduct are the fundamental principles and rules which an accountant or financial professional need to abide by to strengthen their professionalism, maintain the public trust and integrity, depicting the honesty and fairness (Bishop, DeZoort, & Hermanson, 2016). However, It is argued that accountants would keep everything transparent while recording the business transactions and if any discrepancies is found in the business then he is required to give the notes for the same in the financial books of accounts. Therefore, it will help accountant to follow ethical conducts in their work practice (Cheng, 2019).
Support the position
Accountants are bound to act professionally in their accounting work and maintain the transparency. Confidentiality is prime concern for the business success (Weygandt, Kimmel, Kieso & Elias, 2010). Objectivity and independency needs to be followed by accountants while accounting the financial transactions. However, these are the key important ethical values followed by accountant to align the objectivity and independency with the accounting work. It is considered that Ethics for the financial professions and accountant accountants globally compels and uphold them towards the integrity, objectivity, independence, professional competency and due diligence in their professional work. It is argued that accountant must remain free from any interest and conflict when conducting the accounting services (Alleyne, 2016).It is argued that if accountants does not work ethically then it will lead to the recording of the falsified information in the books of accounts. It not only misguides the investors but also diminish the professional code of conducts of the accountants (Friedrichsen, Grüblbauer, & Haric, 2015). In case of JB Hi-Fi, accountants of company had to compromise with the Objectivity and independency while preparing the financial statements. Nonetheless, by complying with the ethics, they put everything transparent and gave the notes to accounts to keep the transparency.
Reason / Paragraph 3:
Accountants and finance professionals should behave ethically because it helps avoid financial disasters. They usually faces issues and conflicts between upholding values to their professional and their duty towards the organizations. The ethical practice needs to be followed by accountants in their professional work practice. The ethical code of conducts and ethics assists accountant to create thin line in their work and help them to mitigate the professional work issues while recording the financial transactions in the books of accounts (Bay, 2018). Nonetheless, Ethics for the financial professions and accountant accountants globally compels and uphold them towards the integrity, objectivity, independence, professional competency and due diligence in their professional work (Zaloom, 2016). Therefore, all the accountant and financial professionals needs to align their accounting capacity and accounting work with the international accountancy professions (Guthrie, & Parker, 2016). However, the set ethics is necessary to follow to comply with the global accounting standards in their accounting work (Brennan, 2016).
Support the position
Ethics allows accountant and financial professionals to observe the technical and ethical accounting standards which helps them to record the true and fair information in the books of accounts of organization (Omran, & Ramdhony, 2015). The proper code of conducts and ethical rules helps accountants to mitigate the ethical dilemmas in their work which they find while performing their accounting duties in particular organization (Gitman, Juchau, R., & Flanagan, 2015). Accountants of the Wesfarmers Company are bound to follow the IFRS accounting standards. Therefore, gives a set restrictions or line in which they work ethically in the best interest of stakeholders and maintain the transparency in the books of account (Ma’Ayan, & Carmeli, 2016). In case of Enron Scandal, accountants were forced to maintain credit from an overpayment on one account to a disputed account which ideally they should follow as it was the order given by their CEO but as per the ethics they should focus on complying with IFRS rules. If they would have followed the proper ethics then that scandal could have been detected very easily.
Ethics helps accountant to discharge his professional duties without compromising his job duties in organization and maintain client’s trust. The accountant should comply their accounting work with the ethical practice if they wants to strengthen their professional practice. Ethics gives a thin line which every accountant or financial professionals need to understand while discharging their accounting duties and liabilities in the organization to reduce the financial distress and scandals. The ethics in accounting practice allows accountant to maintain transparency in the business, discharge their responsibilities or duties and align their work with the client’s trust and professional competency. It eventually helps in avoiding the financial distress and issues. Therefore, all the accountants needs to align their professional accounting practice with the given ethical code of conducts.