By Ronald Duska
This re-creation of Accounting Ethics has been comprehensively up-to-date to house the numerous alterations in the accounting occupation seeing that 2002; the authors systematically discover the hot variety of moral matters that experience arisen because of fresh advancements, together with the monetary drawback of 2008. Highlights the debates over using fair-value accounting and rules- as opposed to rules-based standardsOffers a complete assessment of ethics in accounting, in addition to an exam of and proposals for fixing the present main issue during this fieldInvestigates the character and objective of accountingUses concrete examples and case reports, together with present situationsExamines the moral duties of person accountants in addition to accounting agencies
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Extra info for Accounting Ethics (Foundations of Business Ethics) 2nd (Second) Edition
42 What Is Ethics? Don’t steal. Be fair. Respect others. Treat others as you would be treated yourself. Follow your conscience. Keep your promises or your word. Thus, if someone falsifies an expense account, we agree that what the person did was wrong because it constitutes lying or stealing. Likewise, we agree that what the father in the example above did, in not loaning the car to his child because the father didn’t feel like it, was wrong because he didn’t keep his promise. There are two kinds of reasons to justify our moral beliefs: reasons that validate doing something and those that validate not doing something.
That’s the ethical thing to do, and we will show why a little later. For now, suffice it to say that accountants implicitly promise to do their job when they enter the profession, and promises should be kept. Doing your job encompasses various specific responsibilities. These responsibilities are spelled out in the job description, the employee handbook, the managerial guidebook, the com- What Is Ethics? 39 pany’s code of conduct, and/or finally, the profession’s code of conduct or ethics. Thus, a professional code of ethics and/or a job description sets the standards.
Accounting and the Chief Ethical Difficulty 23 companies. ”10 The Federal Trade Commission (FTC) in 1933 adopted the following rule to provide guidance on what it means to be an independent auditor. The FTC mandated both independence in fact and independence in appearance: The Commission will not recognize any such certified accountant or public accountant as independent if such accountant is not in fact independent. 12 Unless an auditor actively committed fraud, he or she would not be found liable to third parties who relied on a negligently prepared report.
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