Ethics For Accounting Professionals: Maintaining Integrity, Objectivity And Confidentiality

The Ethics for Accounting Professionals

Discuss about the Ethics for Accounting Professionals.

Ethics is the main feature of every profession as these set particular and specified protocols for the employees of the business organization to follow while working. Ethics in business is essential as this ensures that the employees and the business organizations work in their specified sector without being bias. Ethics is profession is necessary as this determines the individual’s moral judgment about correct and incorrect (Triyuwono 2015). This report mentions and discusses the ethics that accounting professionals need to follow while working. The report also highlights the suitable recommendations that are essential for the accounting professionals that ensure that ethics is strictly maintained.

The ethics for accounting professionals include integrity, objectivity, confidentiality, professional behavior and professional competence and due care (Sugahara and Wilson 2013). As commented by Martinov-Bennie and Mladenovic (2015), being professional accountant advisor, the main objective of the accounting professionals is to provide honest advice to their clients. As a result, the accounting professionals have the strict obligation that prohibits them from compromising with their professional and business judgment. However, biasness, undue influence of others and conflict interest tend to distract the accounting professionals from sticking to their objectives. As mentioned by Kidwell e al. (2013), situation differs that eventually exposes the accounting professionals to impracticable situations that makes it difficult for them to follow their objectives. Thus, it is advisable for the accounting professionals to stop working if the situation is affected by biasness, undue influence of others and conflict interest. Thus, it is essential for the accounting professionals to remain free of conflicts and other questionable business relationships while conducting accounting services.

Another significant ethics in the accounting profession includes integrity. As commented by Howieson et al. (2014), the principle of integrity in accounting ethics highlights the compulsion for the accounting professionals to be straightforward and honest in their business and professional relationships. Thus, the concept of integrity highlights truthfulness and fair dealing for the accounting professionals. It is strictly prohibited for the accounting professionals to be associated with financial statements that contain false and misleading information. Thus, the accounting professionals need to stay away and restrict communication as well s relationships if they feel something is incorrect. Additionally, maintaining integrity in for the accounting professionals also restricts them to deal with financial statements that are provided recklessly and does not consider significant information that needs to be included in the financial reports that is misleading.  According to the accounting ethics, it is essential for accounting professionals t report the activity of members that fails in biding by the ethics while performing their duty as accounting professionals (Apostolou, Dull and Schleifer 2013).

Integrity

Professional competence and due care is another significant ethics that accounting professionals need to follow. According to this ethics, it is compulsory for the accounting professionals to maintain certain level of professional skills and knowledge that ensures the clients receives adequate financial help long with working diligently according to the professional and technical standards while providing financial advice (Lawson et al. 2013). In accordance with this ethics, the accounting professionals need to provide correct and authentic financial guidance. Thus, the accounting professionals need to attain and maintain professional competence while providing financial guidance. The accounting professionals can achieve professional competence by continuous awareness that will help in developing individual knowledge regarding technical, business and profession. As a result, adequate knowledge helps the accounting professionals to understand their responsibility and work towards fulfilling their job roles and responsibilities carefully and thoroughly. Additionally, the accounting professionals need to highlight their clients regarding the limitations of their job roles and responsibilities so that they are not forced to work against it in the future (Cohen and Simnett 2014).

Confidentiality is the key aspect feature for the accounting professionals as this makes it compulsory for the accounting professionals to maintain confidentiality. According to Taylor (2013), is is against the ethics of the accounting professionals to disclose information outside their business organization. As a result, the accounting professionals are strictly prohibited from using business and professional information for their personal and third party use. Thus, the accounting professionals needs to maintain confidentiality by being responsible and protecting the information of the clients and their employers. However, confidentiality can be breached in accounting ethics under particular circumstances. For instance, confidentiality can be breached authorized employers by law such as production documents and public authority of infringements (Shawver and Clements 2015). Thus, maintaining confidentiality is essential for the accounting professionals that allow the individuals to protect and secure the financial information of the business organizations and clients.

Lastly, the accounting professionals are bound to highlight and maintain professional behavior while fulfilling their job roles and responsibilities. According to this business ethics, it is compulsory for the accounting professionals to abide by the relevant regulation and law. As a result, the accounting professionals are able to avoid unprofessional actions while performing their job roles and responsibilities (Tweedie et al. 2013). The behaviors the accounting professionals have to avoid includes informing and disclosing information to the third party weighing facts and circumstances thereby, affecting the reputation of their profession. While promoting and marketing them, the accounting professionals need to avoid professional reputation log with making disparaging references to the work of other accounting professionals. Thus, it is essential for the accounting professionals to abide b the accounting ethics in order to ensure bright and secured professional career.

Objectivity

Conclusion

In this report, it can be concluded that professional ethics is the key that determines career success of the individuals associated with respective business. S the accounting professionals deal with finance and financial advice, it is compulsory for them to follow the accounting ethics. As discussed in the report, the accounting professionals need to maintain integrity, objectivity, professional behavior, confidentiality and professional competence and due care. Following the aforementioned ethics allows the accounting professionals to guide an provide correct and influential financial advices without beg bias and without being influenced by third party decisions. According to the ethics, the accounting professionals need to maintain confidentiality and fulfill their job roles and responsibilities by ensuring honesty and remaining trustworthy and loyal. However, the ethical dilemmas such as conflict of interest, confidentiality, management pressure and request from clients for manipulation make the job of the professional accountants difficult.

The suitable recommendations for avoiding the ethical dilemmas encountered by the professional accountants include:

• Informing the clients about their professional ethics

Since the beginning, the professional accountants are obliged to inform their clients about their professional ethics of their partnership. This will make clear to the clients that they cannot force the professional accountants to manipulate financial data and statements. Thus, informing the clients about the professional ethics will make it clear to the clients that they are not supposed to request the professional accountant to manipulate financial statements and compromise with their job.

• Mitigation of the conflict of interest

Conflict of interest is commonly noticed in the profession of the accountants as they deal with clients and individuals with different needs and perspectives. This, it is essential for the professional accountants to mitigate the conflict of interest by disclosing the financial information to the respective person. Therefore, conflict of interest can be mitigated by disclosing the financial statement as the clients will know their numbers and figures. 

References

Apostolou, B., Dull, R.B. and Schleifer, L.L., 2013. A framework for the pedagogy of accounting ethics. Accounting Education, 22(1), pp.1-17.

Cohen, J.R. and Simnett, R., 2014. CSR and assurance services: A research agenda. Auditing: A Journal of Practice & Theory, 34(1), pp.59-74.

Howieson, B., Hancock, P., Segal, N., Kavanagh, M., Tempone, I. and Kent, J., 2014. Who should teach what? Australian perceptions of the roles of universities and practice in the education of professional accountants. Journal of Accounting Education, 32(3), pp.259-275.

Kidwell, L.A., Fisher, D.G., Braun, R.L. and Swanson, D.L., 2013. Developing learning objectives for accounting ethics using Bloom’s taxonomy. Accounting Education, 22(1), pp.44-65.

Lawson, R.A., Blocher, E.J., Brewer, P.C., Cokins, G., Sorensen, J.E., Stout, D.E., Sundem, G.L., Wolcott, S.K. and Wouters, M.J., 2013. Focusing accounting curricula on students’ long-run careers: Recommendations for an integrated competency-based framework for accounting education. Issues in Accounting Education, 29(2), pp.295-317.

Martinov-Bennie, N. and Mladenovic, R., 2015. Investigation of the impact of an ethical framework and an integrated ethics education on accounting students’ ethical sensitivity and judgment. Journal of Business Ethics, 127(1), pp.189-203.

Shawver, T.J. and Clements, L.H., 2015. Are There Gender Differences When Professional Accountants Evaluate Moral Intensity for Earnings Management?. Journal of Business Ethics, 131(3), pp.557-566.

Sugahara, S. and Wilson, R., 2013. Discourse surrounding the international education standards for professional accountants (IES): a content analysis approach. Accounting Education, 22(3), pp.213-232.

Taylor, A., 2013. Ethics training for accountants: does it add up?. Meditari Accountancy Research, 21(2), pp.161-177.

Triyuwono, I., 2015. Awakening the conscience inside: the spirituality of code of ethics for professional accountants. Procedia-Social and Behavioral Sciences, 172, pp.254-261.

Tweedie, D., Dyball, M.C., Hazelton, J. and Wright, S., 2013. Teaching global ethical standards: a case and strategy for broadening the accounting ethics curriculum. Journal of Business ethics, 115(1), pp.1-15.