Why Are Ethics Important in Accounting?

Save

Why are Ethics Important in Accounting?

  • Proper ethics and ethical behavior are extremely important in accounting for a variety of reasons. To begin with, accountants are often privy to sensitive information regarding their clients, such as Social Security or bank account numbers. This gives accountants a good deal of power in regard to their clients and it is important that the trust between an accountant and their clients not be abused. In the same way it is important that the industry itself does not become stigmatized as an unethical one, something that could potentially harm business for all accounting firms.

What Can Result from Poor Ethics in Accounting?

  • Many negative consequences can result from poor ethics in accounting practices. The first result is generally a lag in business. Accounting firms rely heavily on word-of-mouth for promotion, and it's all too easy for a few bad stories about unethical behavior to sway prospective clients away from a particular firm. There can also be serious legal repercussions for those who are found to be violating legal codes and standards for their jurisdiction

What Can I Do to Be an Ethical Accountant?

  • To begin with, study your area's legal statutes regarding accounting practices. While it is true that what is legal and what is ethical can be two different things, the legal code is a good basic guide to help you understand the prevailing feeling towards what is right. Likewise, make sure that you always put the interests of your clients ahead of your own, that you safeguard client information doggedly and never behave in a fashion that you know to be wrong while handling accounting work.

  • Photo Credit Public Domain, Wikimedia Commons
Promoted By Zergnet

Comments

Resources

You May Also Like

  • Definition of Ethics in Accounting

    Accounting is a business field in which accuracy and interpretation are both very important. Small discrepancies can displace large sums of money,...

  • Why Is Accounting Important for Business?

    Accounting is the language of business, one spoken universally at all American companies. It's a language a business has to know to...

  • How to be an Ethical Professional Accountant

    Ethical behavior among accounting professionals is essential. Businesses, individuals and government agencies rely upon accountants to provide them with accurate information so...

  • Ethical Business Practices

    Ethical business practices, in essence, involve doing the right thing in the normal course of business. Companies with a good track record...

  • Why Is Integrity an Important Work Ethic?

    Integrity is critical for employees in 21st-century workplaces. Prominent business scandals, such as the Enron accounting scandal that led to the company's...

  • Why Are Ethics Important in Accounting?

    Ethics are important in accounting to maintain the level of trust with companies and independence to perform necessary auditing functions. Understand how...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!