Importance of Accounting Ethics Essay

Ethics is a branch of philosophy that judge mankind beings on wrongs and rights concerned with the nature of lever and the standards by which human actions sack be judged .The term is also applied to both system or theory of moralistic values or principles. Accounting is the appliance that offers data regarding the fiscal position of the disposal or disdain. This type of reading is hypercritical to investors as it provides them with important and detailed information that could turn out to be the find factor as to their decisions to invest or not to invest in a particular organization. Accounting in craft is one of the most important departments. respectable and passkey person history forms a go off fiscal image of a telephone circuit, and allows managers to bother informed decisions, keepsinvestors abreast of developments in the furrow, and keeps the handicraft usefulnessable. (Osanyin, 2008) In history, there is the passkey ethical motive that guides the s core profession.Accountants ar expected to cohere to the set ethical standards which atomic number 18 designed to ensure that they behave in a way which is ethical and consistent. For most professional report organizations, accountants are certified in order to comply with ethics and they are stripped off their certificates if they fail to pay with ethical codes. Therefore, it is common to find wrong behavior in write up profession. more or less of the forms of unethical behavior in accounting are, Providing erroneous information regarding expenses incurred in business Giving out false information on expenses purposely is unethical. In accounting profession, the accountant should forever and a day provide the crystallise information regarding any expenses as also-ran to do so make the financial status of the business to be false. This affects the profit and loss reports of the business and consequently touching the performance of the business in the desire run.Exaggeratin g business revenueIn accounting practices, all revenue in the business should be report correctly as this can hurt investors in the company, the tax payers who may be caught up in governments bail outs and the breakers at the company. By cover the correct revenue generated, this reflects the true financial position of the company.Misuse of business financesAccountants access most of the funds in the organization and it is unethical to misuse them. This can lead to the closure of the business and last leads to the loss of jobs and investments. Accountants should never misuse business funds and if they use it should be reported in the books of accounts and debited clearly. Some of the reasons why ethics is important in accounting are- Confidentiality People need to have self-confidence in accountants and the services they provide. Failure to do so leads to uncertainty in investors, shareholders and the work force in the organization. If the quality of the accounting is unprofessi onal this leads to low confidence with the stakeholders of the organization. overlord Competence Ethics in accounting ensures that the accountants hold on professional knowledge and skills at the level required to ensure that a client or employer receives competent professional service. This is exhibited by acting diligently and in accordance with applicable technical and professional standards when providing professional services. So as to maintain law and regulations governing the accounting profession, accountants should always observe the professional ethics in their profession.