Ethics is formed by religious, socioeconomic and cultural backgrounds which includes safeguarding, systematizing, and suggesting concepts of wrong and right conduct. Basically, “doing the right things”. Ethical factor states that while certain actions might be both economical profitable and legal, they may be still not be right.
Ethics in accounting which means making the ethically correct decision in estimation, handling and correspondence of monetary data about economic entities (A methodical recording of financial transactions relating to business. An accountant (often handling sensitive information) cannot be bias, conflict of interest or being influence by others to make unethical decision (integrity issue) while facing ethical dilemma. …show more content…
This info is critical to sound investments decisions. Customers as well may be entitled to know if your company is financially healthy if they enter into transition that depend on its longevity.
One of the importance of ethics is time. Accountants must be able to provide prompt relevant and accurate financial info that encourages sound planning within a time frame. If too much time is spent on financial statements that could tell that the business is spending too much on finance, an opportunity to salvage the situation may be lost. This can put a business in jeopardy.
Another importance of ethics in accounting will be confidentiality. Confidential data acquired should not be utilized for individual favorable position of third parties or accountant. Accountant should handle confidential data with care and had to make careful decision whether to disclose the information or not. A lot of damage can be done by letting out information such as about a firm or an individual financial situations or decisions, prospective client or employer, hence, reasonable steps to ensure that accountant are respectable and trusted to handle these information with control. The confidentiality principle protects a business from its competitors, supports a company’s efforts to maintain the company’s competitive advantages and prevents the invasion of the company’s privacy. People need to have confidence with the accountant, failing to do so will lead to
Ethics in accounting which means making the ethically correct decision in estimation, handling and correspondence of monetary data about economic entities (A methodical recording of financial transactions relating to business. An accountant (often handling sensitive information) cannot be bias, conflict of interest or being influence by others to make unethical decision (integrity issue) while facing ethical dilemma. …show more content…
This info is critical to sound investments decisions. Customers as well may be entitled to know if your company is financially healthy if they enter into transition that depend on its longevity.
One of the importance of ethics is time. Accountants must be able to provide prompt relevant and accurate financial info that encourages sound planning within a time frame. If too much time is spent on financial statements that could tell that the business is spending too much on finance, an opportunity to salvage the situation may be lost. This can put a business in jeopardy.
Another importance of ethics in accounting will be confidentiality. Confidential data acquired should not be utilized for individual favorable position of third parties or accountant. Accountant should handle confidential data with care and had to make careful decision whether to disclose the information or not. A lot of damage can be done by letting out information such as about a firm or an individual financial situations or decisions, prospective client or employer, hence, reasonable steps to ensure that accountant are respectable and trusted to handle these information with control. The confidentiality principle protects a business from its competitors, supports a company’s efforts to maintain the company’s competitive advantages and prevents the invasion of the company’s privacy. People need to have confidence with the accountant, failing to do so will lead to