Ethical Responsibilities of Accountants
The accounting profession gains access to businesses and individual's personal financial information. When working with this financial data, the accountant maintains an ethical responsibility to act with the highest level of professionalism. The AICPA and the IMA, two professional accounting organizations, maintain a list of ethical standards for accountants to adhere to.
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Independence
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Professional accountants need to maintain a level of professional independence in regard to the work performed. Professional independence means that the accountant holds no stake in the results of the work being performed. An example of a lack of independence occurs when an accountant experiences a conflict of interest. For example, if an accountant works on analyzing the costs and benefits of hiring a particular service company and her brother owns one of the companies, she has a conflict of interest in the results and loses her independence. Accountants who experience a conflict of interest hold an ethical responsibility to excuse themselves from that work.
Confidentiality
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Professional accountants need to respect the privacy of the company they work for and maintain a level of confidentially regarding the company's financial operations and company strategies. The accountant only should discuss the financial information of the company and its customers with parties authorized to know that information. If a competitor learns the financial details of the company, the competitor could use that to undermine the company's actions. For example, if the company is bidding on a new contract and the competitor learns what price the company bid at, the competitor can bid a lower price using this information. The only acceptable time to breach this confidentiality is when required by law.
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Competence
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Professional accountants need to maintain a level of competence in the work they perform. Accountants maintain their skill level by attending conferences, networking with other accountants and reading accounting periodicals. Many accountants earn certification, which requires them to maintain a level of competence through continuing education. Many accountants specialize in a particular field within accounting, such as tax accounting. An accountant who specializes in one area should not pass herself off as an expert in another area. For example, a tax accountant should not agree to perform payroll accounting responsibilities unless she gains additional knowledge in this area.
Integrity
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Professional accountants need to always consider which action represents the right thing to do and take that action. The right action follows all laws and regulations, adheres to accounting reporting standards and fairly represents the company's position. When an accountant encounters an ethical dilemma, he needs to address that dilemma by talking to a supervisor, contacting the company's whistle blowing hotline or by filing a complaint.
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