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Importance of ethics in accounting?

Importance of ethics in accounting?

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Ethics has an important role in accounting profession. It is where the judgment of being professional belongs. It is whether the act of one accountant is right or wrong, ethical or unethical. Researchers know that the decision making of accountants, especially in the field of auditing, should not just be based on personal judgment. There is a standard that must be followed in performing an analysis of financial statements. Accounting profession is not easy in the world of corporate industry. Since auditors are continuously facing different challenges, their ethical decision will be tested. The guides in ethical decision making of accountants are the ethical principle and values where it provides direction to the right decision. As an example, an external auditor needs to present the financial reports of the company; the external auditor must ensure that their tasks are performed in an ethical standard. If the external auditor unethically performs his/her task, they will lose the confidence of their clients to their services.

Therefore, accounting training system for training the ethical accountant has been being instituted among the accountants since this issue will leads to increase the public trust, efficiency toward the accountants.

The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed of the decision about investment.[4] They rely on the opinion of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company.[5] Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor's reporting

Hence We can Say ethics are blood of Accounting process.

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