The Effect Of Professional Ethics - 788 Words

The Effect of Professional Ethics in U.S. Accounting Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. Ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses forced regulators to revise the conceptual framework of the accounting processes. The professional ethics in U.S. accounting contain the following problems: - Ethical issues of financial reporting – falsified financial statements to mislead investors. - Ethical issues of earning management – manipulation of accounting records to boost the company’s stock price. - Ethical issues of external accounting – failure to correct errors and omissions due to client’s pressure and personal material interests. The research on identified problems is necessary due to vagueness of ethics concepts and their difficulty to translate, gray areas of ethical judgment, and harmful ethical conflicts. It is important to advocate ethical accounting settings to build a strongShow MoreRelatedPros And Cons Of Having A Professional Code Of Ethics1683 Words   |  7 Pagesof Having a Professional Code of Ethics Introduction A professional code of ethics acts as a guide concerning ethical conduct in a given profession. However, over time, it has been termed as an impediment to intellectual and moral developments. This way or another, there are advantages as well as disadvantages that emanate from applying the professional code of ethics depending on the context of practices. For this reason, this paper discusses both sides: positive and negative effects of adoptingRead MoreProfessional Values and Ethics Paper1122 Words   |  5 Pages-1 Professional Values and Ethics Paper Rhonda Beron, Andrea De Los Santos, Emilie Goodman, and LaToya Sims GEN/200 August 16, 2010 Andrea Lara Abstract The purpose of this paper is to discuss the relationship among professional values, ethics, and career success. A person’s personal values and ethics can influence their professional values and ethics in the workplace. Finding the right balance between personal and professional views in the workplace will help foster a successful careerRead MoreThe Code Of Ethics And Systematic Ethics985 Words   |  4 Pages More in depth the research focuses on the code of ethics and moral duties of company top management. Introduction. The authors study the financial scandals and the recent financial crisis to demonstrate the gap between market processes and accounting standards. The IFRS and U.S. GAAP differ in contrary nature of accounting standards. GAAP is considered as rule-based standards, while IFRS viewed as a principle-based. Therefore, the professional judgment on financial improprieties is highly importantRead MoreRole Of Corporate Ethics On Financial Performance945 Words   |  4 PagesAbstract. The article reviewed was The Role of Corporate Value Clusters in Ethics, Social Responsibility, and Performance: A Study of Financial Professionals and Implications for the Financial Meltdown. The key of the abstract is to demonstrate the influence of corporate ethics on financial performance. The financial meltdown negatively influenced top management mindset regarding professional ethics (p. 15). Introduction. The authors study 2008 collapse of financial system to analyze the link betweenRead MoreEthical Healthcare Issues Essay1193 Words   |  5 PagesHealthcare Issues Paper Wanda Douglas Health Law and Ethics/HCS 545 October 17, 2011 Nancy Moody Ethical Healthcare Issues Paper In today’s health care industry providing quality patient care and avoiding harm are the foundations of ethical practices. However, many health care professionals are not meeting the guidelines or expectations of the American College of Healthcare Executives (ACHE) or obeying the organizations code of ethics policies, especially with the use of electronic medicalRead MoreEthical Issues Faced by the Accountancy Profession Essay1747 Words   |  7 PagesEthics plays an essential and integral part in the accountancy profession. Professional conduct plays an important role in establishing public trust in financial reporting and business practise. Yet this can and has come under threat when clients and employees are exposed to the risk of fraud when accounting ethics are not adhered to. Codes of ethics are adopted to ensure the reliability, comparability and integrity of financial statements. Ethical standards exist to safeguard the fundamental principlesRead MoreEthical Self Ass essment1015 Words   |  5 Pages545 Teela Carmack 04/13/2015 Ethical Self-Assessment Paper Healthcare professionals are faced with ethical dilemmas frequently in the healthcare industry and they have the ability to influence patient care outcomes. Healthcare professionals face difficult choices concerning what is best for the patients and can sometimes become entangled with ethical dilemmas. Ethical decision making helps the healthcare professionals make the difficult choices when they are faced with an ethical dilemma. ThoseRead MoreCritically Evaluate Medical Ethics And Legal Issues1263 Words   |  6 PagesCritically evaluate medical ethics and legal issues Introduction Medical ethics and legal issues have been a key topic in medical field for many years now. It is important for medical professionals to understand the importance of the way we care for patients, it is therefore important to be knowledgeable and aware of the medical ethics and legal issues that govern good patient care. Health care professionals must make decisions based on ethical and legal issues to performance their regular dutiesRead MoreThe Ethics And Ethics For Smp Accountants869 Words   |  4 Pagesreviewed was Role of Independence in Ethics for SMP Accountants. The key of the abstract is to emphasize the strength of ethics and moral behavior while conducting the audit (pp. 305-306). Introduction. The author studied professional ethics and auditor independence at small and medium firms. The researcher compared ethics with values, and laid emphasis on the credibility as one of the most important ethics element (p. 306). The concept of auditor independence and ethics has significantly changed for theRead MoreA Study On Malaysian Institute Of Accountants1416 Words   |  6 Pages The Malaysian Institute of Accountants website offers viewing of the code of ethics for practicing accountants (2010). As per the website and information therein, The Malaysian Institute of Accountants set up the Ethics Standard Board in June 2009 in order to supplement the Malaysian Government’s push to promote greater integrity and ethics. The vision of the Ethics Standard Board is to adopt high quality professional and ethical standards for the accountancy profession. Their mission is to promote