In today's fast paced world, Ethics have emerged as an integral part of every system. With the growing number of organizations worldwide and fierce competition, every firm wants a larger share of the pie. It is just a matter of time before businesses collapse and financial markets stumble on a worldwide scale. In order to avoid such a catastrophe, today's accountants have been given more challenges to face and higher roles to play within their organizations. Managerial and financial accountants are required to operate with highest ethical standards.
Managerial Accounting is the process of identifying, measuring, analyzing, interpreting and communicating information in order to achieve an organization's goals (Thompson, 2006). Managerial Accounting is widely known as Cost Accounting all over the world. Management accounting is concentrated towards managers of organizations to assist them in management [Needs comma] making decisions and plan the company's operations. It revolves around the inner management teams and usually is confidential in nature With increasing competition, both locally and globally, management accountants are now faced with more responsibility and their scope of accountancy has drastically widened.
They focus more on the managerial activities at all levels within the organization. This is done to help the internal users to improve the effectiveness and efficiency of the organization by delivering better quality goods and services (Thompson, 2006). On the other hand, financial accountants are in charge of making financial statements for external decision makers. These decision makers include banks, suppliers, stockholders and government agencies that play a vital role in financing the company (Horngreen, Stratton, & Sundem, 2002).
Since external users have limited access to the company's information, there own success depends on getting reliable and consistent external reports. These reports are general-purpose financial statements such as income statements, owner's equity statements, cash flow statements and balance sheet.