How Can Professional Ethics in Accounting Be Improved?

Accounting ethics are the principles individuals must follow when working in this professional environment. The American Institute of Certified Public Accountants (AICPA) is a professional organizational that currently develops a professional code of conduct for accountants. This represents a good start to understanding professional accounting ethics.

Types

The AICPA code of professional conduct includes integrity, objectivity, independence and due care. Although code of conduct is required for individuals holding professional certification, all accountants should understand and follow these principles regarding their professional stature.

Considerations

Accountants holding professional certification---such as the certified public accountant (CPA) license---are typically require to complete a certain amount of continuing professional education. Although the AICPA allows state accountancy boards to set these standards, requiring accountants to include ethics refreshers could improve the accounting profession.

Purpose

Professional ethics help accountants avoid situations that will compromise their professional independence. In addition, accountants have a responsibility to the general public by reporting all financial information from a company. Reporting false information damages the trust individuals have in professional accountants.

References

• American Institute of Certified Public Accountants: AICPA Code of Professional Conduct