Question

D3. Ethics in Accounting

With the high-profile accounting scandals at the start of this century such as Health South, Enron, WorldCom, AIG, Lehman Brothers, and Arthur Andersen, the public's relative flattering opinion of the accounting profession faltered. Some business people even suggest that "accounting ethics" is an oxymoron. As an accountant at the start of your career, can you do anything to reverse this perception?

Answer 1

Well, Ethics in accounting plays a very important role in accounting profession. As an accountant I have been thought and learnt a lot about the ethics to be followed in accountancy, viz. accounting standards, accounting rules- principles etc .issued by certified authorities.

The primary motto of any organization in the competitive world is to earn maximum profit & grow with the time. And accountancy plays a vital role here in order to give a true & clear picture to any organization for their profit /loss of the business.

In the above case with the high profile accounting scandals, people are suggesting that accounting ethics is an oxymoron which is not at all true. If a single individual does a scandal, others, just to give them competition or to achieve the same position, what a previous individual has achieved, does more scandals. Ethics, whether in real life or in accountancy field, if followed in a well-trained manner it will always takes you further towards success & growth in life & in business as well