Importance Of Ethics On Accounting And Business At Large

The Importance of Ethics in Accounting Zachary J. Blake ACCT 302--B01 LUO 06OCT14 The Importance of Ethics in Accounting Abstract: Ethics are of the utmost concern within accounting and business at large. Ethics are the standard by which we make moral choices and decisions in our lives. In business and accounting, ethics give external users such as stakeholders, venture capitalists, and others a measure by which they can weigh financial statements and information to see if they are accurately portrayed. There are many different standards which govern the ethics of the accounting profession such as United States GAAP and European IFRS. Legislation, such as the Sarbanes Oxley Act, has been passed to ensure that these ethics are maintained. Introduction: Ethics are the backbone of the accounting profession and are a subject of utmost importance within the field of business. Ethics within the accounting profession ensure that financial information is presented truthfully. Accounting ethics deals with specific questions on whether a given business practices is acceptable or not. To this end, many standards, principles and agencies such as FASB, GAAP, IASB, IFRS, and the Securities and Exchange Commission have been formed to codify and enforce these ethics. There has also been an increasing desire within the general public for transparency within publically held firms largely due to recent corporate scandals and the general power large corporations wield over society (Melà ©,Show MoreRelatedImportance of Ethics in Accounting1065 Words   |  5 PagesRunning head: IMPORTANCE OF ETHICS IN ACCOUNTING Importance of Ethics in Accounting Everest University Importance of Ethics in Accounting Accounting fraud is common but is not as trivial as the common cold; a typical organization loses annual revenues of nearly 5 percent to fraud. In addition, almost one-quarter of reported fraud is exceeding $1 million dollars. 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