Management Accounting : Code Of Ethics

When auditing a publicly held company, auditors need to observe principles. The ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of

“ In order to prevent fraudulent financial reports and statements, the American Institute of Certified Public Accountants(AICPA) has created ethical standards” (Ethical standards in a financial statement, 2011). These standards aim to make financial professionals accountable for their accounting practices. This includes the integrity of financial reporting and ensuring financial reporting is done fairly and factually. Financial accountants and professionals should maintain professional integrity, objectivity, and independence to reduce the risk of resulting legal action, loss of profits, and a poor reputation if improper financial reporting is done (Ethical standards in a financial statement, 2011).

This post will discuss two ethical accounting dilemmas that could occur in the CPA profession. For each dilemma, it will explain how the dilemma could be resolved based on logic and reason. It will then support that proposed resolution through support from the American Institute of Certified Professional Accountants (AICPA) Code of Professional Conduct.

Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the

* Bo and Mo do explicitly say that it is up to Kevin to decide how to increase his productivity.

In a National Nonprofit Ethics Survey, the Ethics Resource Center categorizes an organization as having a strong ethical culture when top management leads with integrity, supervisors reinforce ethical conduct, peers display a commitment to ethics, and the organization integrates its values in day-to-day decision making (Berger

Ethics in any industry is important, but for Accounting professionals and those in need of their services, it is a particularly stressed element. Information provided by accountants is used to make major decisions, including investing, downsizing, expanding, etc, so accountants are expected to be competent, reliable, and have a high degree of professional integrity. Because of these high expectations, the professional accountancy industry, like many other professions, has adopted professional codes of ethics (Woelfel, 1986). These ethical codes go above and beyond the requirements for state or federal laws and regulations. There are several professional organizations within the

Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses forced regulators to revise the conceptual framework of accounting processes.

While I was looking for an appropriate topic for research, I found an interesting publication, which fitted best to the subject (ethics in managerial accounting issues) and also included 5 good examples examples of possible problems associated with the field. The method of the study seemed unclear, especially considering the connection between the serial number of a dollar bill and the question to which the respondent had to answer in the end (in my work I will constantly refer back to the text, and in the end there will be a link to the document for review), though the examples given in the text seem to be really appropriate.

Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations, financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers, employees, and the general public. A CPA has to be responsible for their audits and take any punishments as a result of their mistakes, incompetence or illegal actions. CPAs are expected to have integrity in their work,

Ethics are the foundation of an organization. They are what guides an organizations employee behavior, policies and business decisions. The reputation and success of any organization is heavily tied to their ethical climate. It is important that organizations understand the correlation between acting ethically and organizational success. According to Kreitner & Kinicki a staggering eighty four percent of Americans said that if price and quality was similar, they would change their allegiance to an organization that is associated with the most worthy cause (2013).

1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior.

According to Marshall (2004), "accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements" (p. 3). Specifically, financial accounting "refers to the process that results in the preparation and reporting of financial statements for an entity" (Marshall, McManus, & Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a Certified Public Accountant (CPA) to perform services such as reviewing or compiling statements. (A CPA is a professional designation granted by individual states.) Entities that are publicly traded or complex in nature contract for

In the accounting field General Accepted Accounting Principles (GAAP) are main Code of Principles developed by Federal Accounting Standards Advisory Board (FASB). Term GAAP has a specific meaning for all accountants and auditors. However, in cases when GAAP procedures will not provide a resolution of the accounting issue the accountant faces a moral dilemma. This is a situation whether there are several conflicting rules or because there are no GAAP rules (J. Wiley & Sons Inc., 2006).

Jim Goodnight is the CEO of SAS and has lead the company since 1976.Jim has brought innovations and corporate culture by his commitment and visions to meet the highest technology and work-balanced. SAS which stand for “Statistical Analysis System” have values and work on them to meet the highest standards and overcome boundaries to reach the future with great expertise and tangible results. In fact, SAS are committed to the highest ethical standards in its dealings with colleagues, customers, suppliers and competitors. Also, the company’s Code of Ethics associated with the compliance practices have earned the company its public reputation as an ethical and responsible employer and business partner with are engaged to provide