Ethical issues behind accounting manipulation
When engaging in accounting, ethics are also involved. Ethics in accounting refers to the morals and judgments that a professional needs to follow when engaging in accounting. Financial users not only rely on his skill and ability but also on the individual's judgment. Accounting professionals created an accounting code that all the accounting professionals need to follow. The conduct or ethics oblige accounting professionals to have a high degree of self-discipline. Accountants are responsible for sticking to the code of ethics, so as the profession of accounting does not lose its confidence and credibility. The role of ethics in accounting is to guarantee that accountants will follow certain rules so they can conduct their profession in a fair way. It straightens the confidence of the public towards private firms.
There exist a set of guidelines made by the AICPA that can be used in the field of public accounts.
The IIA (Institute of Internal Auditors) and the IMA (Institute of Management Accounts) created their own code of ethics, which can also be used in the field of accounting. Since it is difficult to verify whether accountants are following the code of ethics it is the responsibility of all professional accounting organizations, to make sure that all their members follow the standard set of ethical guidelines.
Organizations cannot teach ethics to the accounting profession. Rather, it is the family, society, schools and colleges and professional organizations that are responsible in making sure ethics are embedded in a person. So the codes of ethics prepared by different institutions cannot teach a person to be ethical, rather it can help a person build a sense of ethics in a professional.
Nowadays ethics is needed in the profession of accounting, specially when the world is witnessing a turbulent economic...