Accounting Ethics – The Importance of Ethical Practices in business and personal financial

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What is moral accounting? The concept of accounting ethics focuses on the ethical and values-based settings for judgments and decisions auditor or audit firm establishment face daily in their work. Because of the nature of their communication of financial information to business managers, shareholders and the public, as well accounting and auditing business entities, accountants and accounting agencies are held to the highest standards of transparency and ethics in relation to their studies and the information they convey. Accounting can be used as a way to learn how and why companies can succeed or fail, but above all it is a public service, those who practice it to make decisions and choices that can sometimes occur interests of its clients in the interests of the public.

to apply ethical standards of accounting creates opportunities for the treatment of facts and information, if it is used for error could cause a person to invest under false pretenses, or company to represent fraudulent financial shareholders. It is extremely important that the public can trust accountants and accounting for their financial future, and their family or business, could be at stake.

Why is it important that statutory auditors and audit firms to be ethical?

Over the years there have been some major accounting scandals in the US, and the world at large, which caused investors and public shareholders to lose billions of dollars, and giant corporations and accounting firms to break, due to falsified or erroneous information given out of company money was invested. The Enron scandal is perhaps the most recent and glaring example of unethical accounting causes many negative effects, including loss of $ 25 billion in assets shareholders closure Arthur Anderson accounting firm, and the subsequent loss of 85000 jobs unethical practices were reported and the company dissolved.

Ethical accounting is not only important to private companies or individuals for reliable information about the financial states, but has a responsibility to the public to provide a transparent assessment of the publicly held units. Ethical accounting can help eliminate serious difficulties when incomplete or incorrect information about the company or individual is distributed, saving money and jobs and helping to increase the stability of financial markets.

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