The Ethical Code Of Ethics

It is important to have at least a good understanding of what we are talking about in regards to not only ethics in general but ethics in business and for accounting specifically, as this case is focused primarily on accounting practices. The American Institute of Certified Public Accountants or AICPA had developed five divisions of ethical principles that its members were expected to follow. Those principles are “independence, integrity, and objectivity”, “competence and technical standards”, “responsibilities to clients”, “responsibilities to colleagues”, and “other responsibilities and practices” (Sellers, 1981). And even after the recent onslaught of scandals, some of the responsibilities of regulation in public companies have been transferred from them to the government in order to create the Public Accounting Oversight Board or PCAOB, the AICPA does retain a good deal of authority in this area.

The Model of Trust Enhancement was established to enhance and maintain the public’s trust in the accounting profession. Over the last two decades, the ethics of the accounting profession has been questioned and public trust destabilized, in particular for auditors, due to the Enron debacle. The fact that an auditing firm would assist their clients with publishing an inadequate set of financial statements shows their willingness to violate laws and regulations (Sims & Brinkmann, 2003). According to the textbook, “Because trust is essential, even the appearance of an accountant’s honesty and integrity is important. The auditor, therefore, must not only be trustworthy, but he or she must also appear trustworthy” (Duska, Duska & Ragatz, 2011, p. 116). The majority of statements filed inadequately have a substantial impact on the credibility of the accounting profession as a whole. Sullivan (n.d.10) states that a CPA must possess a high level of trust, by applying professional judgment and enhancing the three trustworthy characteristics (ability, benevolence, and integrity) when resolving accounting ethics dilemmas (slide 3).

Accounting and management are the major pillars of an organization that contributes to the country’s economy. Introduction of AICPA Code of Professional Conduct helps in controlling the business operation especially in the accounting and management departments. Accounting and management fraud have been experienced whereby through corruption or other means, entrusted managers and accountants tend to be selfish in undertaking their duties. These factors are well addressed by the AICPA Code of Professional Conduct principles. Therefore, the study seeks to introduce two case studies whereby the management fraud have been experienced. Furthermore, the study will incorporate the use of AICPA Code of Professional Conduct in controlling the situation to ensure harmonious business operation in the management.

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

Any time of planning is a process outlining the objectives for future direction. At times this may also include determining course and implementation on how to achieve the targets. This is city planning in a nut shell. The purpose of city planning is listed in its code of ethics. Planners have the responsibility “to serve the public interest with compassion for the welfare of all people (APA, 2005).” Because it is a planner’s job to plan for the public, this in turn will have a direct effect on a population.

Humans has been discussing and thinking of the complex theories of ethics and how they relate to mankind for centuries. The history of human ethical philosophy is far greater and more complex than this paper can ever truly attempt to define or explain. Great philosophers like Aristotle, Machiavelli, Kant and Mills have already taken on the aforementioned task. This paper is not an attempt to replicate their work or explain their work, instead this paper will look to take the theories they have presented along with the writings presented throughout the entirety of this course and discuss the risks associated with the creation and implementation of organizational codes of ethics without factoring in the needs of humanity, then create a personal code of ethics.

John Stuart Mill once said “A person may cause evil to others not only by his actions but by his inaction, and in either case he is justly accountable to them for the injury” (1993). With this being said, it is important to for UWEAR and PALENIM to form a code of conduct in order to define what is right or wrong within the company. A code of conduct, otherwise known as a code of ethics, will guide their employees to follow ethical standards that will be put into place by UWEAR and PALENIM. UWEAR and PALENIM have certain situations in the past that could be seen as unethical; forming an ethics committee would not only develop a code of conduct, but enforce it and develop an easy way for employees to report unethical behavior as well.

Abstract. The article reviewed was Role of Independence in Ethics for SMP Accountants. The key of the abstract is to emphasize the strength of ethics and moral behavior while conducting the audit (pp. 305-306).

Ethics in all forms is concerned with the good and bad, right and wrong in a situation. (Duska) In life you will be placed in a situation where you have to make a choice. These situations are not always black and white, in other words they do not have a clear answer. You will not know what your reaction would be in any given situation until you are there and have to make the decision. This is present in both our personal and professional lives. However, if you always follow the guidelines set by God and treat all as you wish to be treated then more than likely you will make a fair and impartial decision when necessary. The accounting profession is based on the honesty, integrity, and word of those in this profession. That is truly who they are in the eyes of the public and with this comes great responsibility to all those involved. We will be evaluating two ethical systems in this paper and deciding which would be the most appropriate for the accounting profession.

“The auditing profession promotes the principle of independence to define, defend, and extend the profession” (Sikka and Willmott, 1995). Independence is the most priceless asset in the auditing profession and the basic principle that supports the reputation of the auditing profession in the public eye. Auditors protect the public’s confidence in such services by conducting an auditing work independently. In fact, the capability of the profession depends on how it can ensure the principle of independence.

Is your firm or company making ethical decisions? Making ethical decisions is not always the easiest thing to do and can bring about an ethical dilemma. Ethic dilemma can involve different incident where the welfare of individuals can be impacted by the result of one’s decision (Whittington & Pany, 2014). Discerning the intentions that lead individuals to make a business decision is significant, for it enables the “moral evaluation of the decisions”, in which is critical to developing an ethical business (Di Norcia & Tigner, 2000).

Auditors have to face internal managers of the companies and the CPAS in companies, so that auditors have to enhance their professional judgment. Content of professional judgment include: 1) the importance indicators in the audit, 2) main objectives and conclusions of fraud audit, 3) efforts in internal control, 4) the trustworthiness of the internal control system, 5) the choice of the appropriate audit procedures and determine in the company 's financial statements whether properly and fairly reflect the current operating situation.

In a world full of financial corporate scandals, the effective management of accounting and finance functions is a vital undertaking in that these two areas have direct connections to ethics (Mele, Rosanas, & Fontrodona, 2017, p. 609). Due to the occurrence of corporate fraud, these two areas are in need of ethical rules. According to Mele et al.

Introduction. The authors study 2008 collapse of financial system to analyze the link between organizational values, social responsibility, and financial performance. Accounting and legal professionals argue that the current law and provisions are lack of ethics regulations. Experts state unethical financial decisions, inadequate disclosure, corrupted work of auditors contributed to economic breakdowns. The researchers see the necessity of building the sophisticated model of behavioral pattern of accounting and financial professionals, company management, and external auditors (pp. 15-16). The main objective of research is to determine key elements of ethical thinking of executives and accountants that consciously put the financial system in catastrophic situation. The study discusses cause-effect relationships between the ethical attitude and professional responsibility. The study is important because it investigates motivational objectives of accounting professionals, values of professional judgment, and actions that fail responsibility, integrity, and objectivity.

of ethics of the internal auditor in public finance sector entities” and “The card of internal audit in public finance