Can Professional Accountant Carry out their Code of Ethics in Reporting? (original) (raw)
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European Scientific Journal, 2014
Economic decision-making by enterprise owners, potential investors and the managers and technologists of an organisation rely on information supplied by accountants. Insufficient or inappropriate understanding of the norms of ethics by accountants or individuals acting in their environment leads to the formation of accountants' unethical behaviour and the problems of accounts handling and finance management. This study analysed the models of professional ethical behaviour presented in scientific literature and used for empirical studies as well as the possibility of their application during an assessment of accountants' professional ethics in the context of their virtues and environment, selected the virtues of accountants and environmental factors having an influence on accountants' motivation to behave ethically/unethically and evaluated the importance of these factors for the ethical behaviour of professional accountants. An analytical study design was used in order to develop a theory-based framework. Using Rest's model of executives' ethical behaviour, we analysed the impact of personal moral identification, business environment and the Code of Ethics for Professional Accountants on accountants' professional ethics. In order to establish whether or not these factors predetermine ethical behaviour of professional accountants, an anonymous survey of professional accountants in business was conducted by asking them to evaluate whether or not the presented virtues and business environment-related cases that are likely to cause professional ethics problems are important in accountant's work. Study results lead to the conclusion that the ethical behaviour perceived by accountants is predetermined by their virtues (a sense of duty, integrity, fairness, attentiveness, independence and selfconfidence). Meanwhile, neither a working environment of accountants nor knowledge of the Code of Ethics for Professional Accountants predetermines ethical behaviour.
Ethics and Financial Reporting Assurance
International Journal of Academic Research in Business and Social Sciences
This study paper mainly focuses on the relationship of ethic and financial reporting assurance. As nowadays, the ways of reporting financial information are changing because of the nature and unavoidable technological advancements. Following the biggest scandal in accounting field such as Enron, World com, Parmalat and many more, the accounting professional bodies and other concern party are beginning to questioning the reliability of financial report that is being published by professional accountants. Hence, the ways to overcome this is by cultivate the ethical behavior among new and current professional accountants. Besides, to enhance the confidence of stakeholders, integrated financial reporting is now becoming a necessary element in financial reporting. This study also recognizes the important of good corporate governance for the better future of companies, auditors and other parties that involve in accounting fields.
Article ID: IJM_11_02_025 Role of Accountants
Purpose: The main purpose of this research is to contribute towards enhancing the knowledge regarding importance of ethics in accounting profession. Accounting profession is required to uphold the principles of trustworthiness, transparency, and accuracy in financial reporting. This research informs about the importance of effective ethical behaviour among professional accountants to reduce ethical issues in practice. Methodology: This research adopted qualitative systematic review methodology. The careful selection of the studies and evidences was done, which enhanced the quality of findings. This study includes peer reviewed papers and accounting and management books for ensuring the quality of evidences. Critical appraisal of all evidences further helped in collection and synthesis of most relevant evidences. Findings: Findings of this research informs that there are various moral and ethical dilemmas that can result in affecting the quality of accounting. Therefore, compliance to ethical principles and ethical standards is necessary for ensuring the quality, fairness and trustworthiness of accounting statements. It has been identified that financial crisis in the last decade was the result of various financial misstatements and financial frauds. Therefore, analysing the role of accountants in financial frauds and scandals becomes imperative. This study conducted the systematic review that specifically seeks to answer the research question. This study informs regarding the importance of ethical principles that are important for reducing ethical dilemmas of various forms. Conclusion: This research concludes that professional and personal ethical values are very important for reducing ethical issues in accounting that can result in diminishing the reputation and values of accounting profession.
ETHICAL CONDUCT OF ACCOUNTANTS AND FINANCIAL REPORTING QUALITY: A LITERATURE REVIEW
Ethical Conduct of Accountants and Financial Reporting Quality: A Review of Literature , 2021
This study examines ethical conduct of accountants and financial reporting quality. It became necessary to undertake this study following the spates of financial scandals despite earlier studies conducted to look into it. A conceptual approach and review research design were adopted to achieve this objective. The study was anchored on Stewardship theory. A review of literature showed that companies with codes of ethics outperform others without codes of ethics. It also showed that ethical conduct of accountants affects financial reporting quality. Prominent amongst the recommendations in this study was that professional accounting bodies should develop adequate measures that have the capacity to detect violations of ethical codes by members, enforce compliance and ensure that the recent ethical standard promoted by professional bodies in Nigeria, called 'Non-Compliance with Laws and Regulations (NOCLAR)' is applied for high level of professionalism and public trust in the accounting profession.
The Impact of Professional Ethics on Financial Reporting Quality
SSRN Electronic Journal, 2012
Accountants have obligations to shareholders, creditors, employees, suppliers, the government, the accounting profession and the public at large. In other words, their obligations go beyond their immediate client. Decisions made on information provided by accountants can materially affect the lives of any or all of these stakeholders. Therefore Behaving ethically is an essential and expected trait. Expectations of society is very much from the Professionals and People need to have confidence in the accounting profession by providing quality of complex services .therefore, The information provided by accountants should significantly efficient, reliable, realistic and are unbiased. Lack of professional ethics accompanied with qualitative characteristics of financial reporting can make an unrealistic picture of financial reporting. Regardless of accounting standards and rules, without professional ethics, accountants can provide manipulated financial reports. The existence of accounting standards and rules per se does not guarantee a sound and appropriate financial reporting. Hence, combination of professional ethics and qualitative characteristics of financial reporting must be used. developing professional ethics in accounting profession lead to promoting the quality of financial reporting.
Ethical Behaviour of Professional Accountants in Brunei
CGN: Business Practices & Ethics (Topic), 2019
Ethical behavior is deemed important in today’s environment as corruption scandals persist to exist. Financial malpractices have directed research attention to increase professional accountant’s ethicality. This paper tries to analyses the ethical behavior of Bruneian Accounting professionals in Small and Medium Enterprises. High-profile accounting failures have led to the introduction of the Code of Ethics for Professional Accountants produced by International Ethics Standards Boards for Accountants as they serve public interest by setting-high quality ethical standards. This paper additionally examines the ethical issues that occur in organizations and individuals specifically. The paper then tries to analyses how different factors and demographic variables affect the moral attitudes of Bruneian accountants. Moreover, this research paper explains how education and training on ethics might improve ethical sensitivity and awareness of ethical issues. Questionnaires were distributed ...
Professional Ethics of Accountant, Auditor and Taxpayer as a Factor of Forming Public Opinion
Economic journal of Lesya Ukrainka Volyn National University
The article describes the features of professional ethics of accountants, auditors and tax officers as an importantcondition for achieving the better productivity. The essence of the concept of professional ethics is stated. Professionalethics is a code of rules that determine the behavior of a specialist in the performance of professional duties andguarantee compliance with moral norms within the current legislation. The basic principles of ethics of professionalaccountants are clarified. The algorithm of identification and assessment of threats to the observance of basic principlesand application of precautionary measures is determined. It is established that the observance of professional ethics byan accountant, auditor and tax officer is one of the most important factors of clients' trust in the results of their work.
Ethics and Role of Accountants
European Journal of Business and Management, 2014
The role of accountants in adhering to ethics was addressed in this paper. Accountants face a number of challenges in the course of carrying out their roles and obligations. Questionnaires were used to elite responses from respondents and the Chi-Square statistic was used to analyse the data collected. It was found that the role of the accountants is dependent on the ethics of the accounting profession.
Following serious breaches of ethical conduct increasingly occupying some companies’ dealings, calls for a more sound enforcement of the mechanisms constituting policy statements and other regulatory frameworks currently in place are timely and justifiable. Many of the cases reported have shown that such breaches have caused the collapses of several large companies throughout the world. Often professional accountants become the main target based on their technical functions in accounting and auditing that lead to the so-called accounting scandals. In this instance, accounting scandals are normally associated with their acts by way of exercising professional duties not in the best interest of the companies’ principals and other stakeholders. To a certain extent, such scandals may cause these companies to suffer huge losses out of misconduct or negligence on the part of some professional accountants. These events have also resulted in accountancy bodies around the globe becoming another target of blame for their “failure” to appropriately monitor the discharge of various technical duties among their professional members. Considering issues highlighted above, this paper discusses the ethical state of professional accountants and also the mechanisms that are currently in place so as to design future initiatives to resolve critical ethical issues. This is due to aggressive calls for adherence to a code of ethics and other mechanisms as platforms for the accounting profession to contain many of the problems particularly when the confidence of those affected has eroded over the profession. At this end, a continuous and holistic approach should be assumed by accountancy bodies and other related authorities in a way that they work referenc frame Bronze Award: Current Mechanisms and Future Initiatives Shaping Ethical Behaviour of Professional Accountants in Malaysia back to Contents 83 hand-in-hand with corporate organisations to regain public trust by working on some realistic measures such as refined policy initiatives and a more stringent enforcement of the current mechanisms.
Ethical Challenges in Accounting: an Indian Case
International Journal of Finance and Accounting, 2012
Accountant working in the private or public sector companies must remain impartial and loyal to ethical guidelines when reviewing a company or individuals financial records for reporting purposes. People are expecting a lot from the professional community and the quality of the complex services provided by the accounting profession have confidence. Of The information provided by accountants should significantly efficient, reliable, genuine and disinterested, then not only should be qualified accountants and professional competence are But also enjoys a high degree of honesty and integrity, professionalism and professional reputation is their most important assets. The Moral Accounting for Professional Accountants And those who rely on accounting services is very important. Businesses rely heavily on accounting ethics, whether they're aware of it or not. Unless investors, creditors and managers can be reasonably confident that the financial record keeping practices of their accou...