The Relevance of Accounting Ethics in the Present Day Business Scenario
The term ethics is a very wide term that means maintaining the morals and principles in the business operations, functioning of the governments as well as even in the very basics of operations that an individual performs. In the field of accounting the term accounting ethics means maintaining a high degree of morality in the profession of accounting. As the field of accounting primarily deals with the finances of an organization or governments therefore the need to have the ethical coaching as part of the curriculum of the accounting courses is mandatory. Even the institutes that train the various accountants and auditors encourage or rather emphasize upon the maintenance of the ethics in the operations concerning the accounting and other finance related matters.
The term accounting ethics was developed by Luca Pacioli and was further improved upon by the various governments as well as organizations. In the present business scenario when there has been so much of accounting misdeeds and the corporate collapses, the world of accounting is once again trying to focus on the ethical questions behind the accounting profession. The corporate collapses have spread negative vibes among the people concerning the profession of accounting. Thus, in order to improve the image of accounting as a profession and also to prevent fraudulent accounting from taking place the organizations, the accounting firms as well as the governments have started fomenting ethics among the accountants and have introduced various regulations within the accounting profession.
The people who use the financial statements, the share holders, the stock holders are just a few among the many who use the statements that are prepared by the accountants and then later on verified by the auditors. Thus it becomes imperative for the accountants to present a true as well a fair opinion on the current financial standings of the company. Although it might not be beneficial for the company as such, still the accountant has to keep in mind the larger interest of the public who solely rely on the reports prepared by the accountants.