The Ethics Of The Accounting Profession

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Ethics is a decision one makes in knowing the right thing to do and actually doing the right thing. They are the rules of behavior based on one’s belief of what is morally good and bad. A person may hear the word ethics and immediately think of government or the law. Not only does ethics have a role in government, it also plays a major role in business, including accounting. Schroeder, Clark & Cathey (624) states that the “reason for a high level of ethical conduct is the need for public confidence in the quality of services provided by the profession.” Ethical conduct not only encourages a high standard of performance; it also encourages a high quality of professional service. Enron’s financial scandal put a huge damper on that confidence. The Enron scandal made the public aware and conscientious of what could happen when dealing with unethical individuals. Since then, the public has educated themselves and are continually becoming more informed. Ethics in the accounting profession is not going away, it will only continue to change as business transaction change and become more complex. Although some behaviors are legal they may not be held as ethical. For example, Henry Blodgett, an analyst for Merrill Lynch, publicly recommend certain technology stocks, although he knew they were not any good (Smith, 2012). His recommendation of these stocks was unethical, but completely legal. One difference between the court system and judging ethical standards is the court
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