Essay on Accounting

3354 Words May 26th, 2016 14 Pages
An Analysis of Accounting Ethics
Anna Aspras
ACC 770
Hunter College

Ethics refers to the discipline that deals with the bad and the good and also with the moral duties as well as moral obligations (Stolowy and Breton 2004). As Weidmann and Lenzen (2006) points out, ethics entails doing the right thing. Accounting ethics is mainly in the area of applied ethics and at the same time, it is also a part of business ethics as well as human ethics. It is worth pointing out that the kind of work that is always carried out by the auditors, as well as the accountants generally needs very huge ethics levels (Stolowy and Breton, 2000). The shareholders of the firms, the potential shareholders, as well as the other people who
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Various professional organizations like the American Institute of Certified Public Accountants, as well as Institute of Management Accountants have various codes of ethical conduct that the members have to adhere to (Matis, Vladu and Negrea, 2009; Weidmann and Lenzen, 2006).
Accounting ethics play a major role in the maintaining the faith of the public. There have been several accounting scandals in the recent past and therefore, transparency concerning the accounting methods, as well as the practices of firms has generally been increasingly significant to the public in general. A firm which offers very clear explanation of the methods of accounting that are employed in the preparation of the financial statements generally appears to be highly ethical, as well as trustworthy in comparison to the firms which do not offer information like such. In most cases, the more trustworthy and ethical a firm appears, the more likely that the firm will attract newer investors (Balaciu, Bogdan and Vladu, 2009; Balaciu, Bogdan and Vladu, 2009). Datar and Foster (2006) stated, engagement in accounting ethics also plays a major role in making the firms to avoid various regulatory investigations, as well as sanctions. When the financial reports of a firm has suspicious accounting techniques, it may result into regulatory investigation by various regulatory bodies, and when the regulatory bodies establish

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