Full disclosure supports transparency and the accounting professional should disclose all information that investors, owners, creditors, and the government need to know to make informed decisions. A person of integrity is trusted by others because that person is true to his or her word, and is the benchmark against which a member must ultimately test all decisions. This person will not subordinate the public trust to personal gain and advantage; and will observe technical and ethical
Professional ethics or behavior whatever we call it can be defined through the bellow encompasses criteria. * Responsibility: we should be responsible to fulfill our main duties, for what we are appointed for. We cannot but neglect a bit and stay away from the duties. * Honesty: The fundamental of everything. We need to be honest in not only corporate life as well as in daily living.
The AICPA have several publication that helps with guiding the accounting profession and to enhance the member’s technical and professional abilities. One thing that the AICPA requires of their Accountants and CPAs is to continue with professional education, so that they will stay abreast of all current accounting and business issues. The AICPA is considered the foundation of ethical reasoning in accounting because each individual in the accounting profession whether they are certified or not has the obligation to be ethical with the public in business dealings and having access to financial information. All
Foundation of ethical reasoning in accounting The AICPA is considered the foundation of ethical reasoning in accounting because its principles are a guide to members for how they are expected to perform their professional responsibilities. As an organization their aim is to instill in its membership according to ET Section 51- Preamble “The principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage (AICPA.org 2006-2014). The principles are simple and direct. The principles of the AICPA are responsibilities to the public interest, integrity, objectivity and independence (independence applies to CPAs in public practice), due care, and scope and nature of services--revised May 15, 2000 (AICPA.org, 2006-2014). These principles are exemplary ideals for the accounting profession in the performance of their professional responsibilities.
The reality is that accountants have a legal and ethical duty to follow the rules and regulations as outlined by GAAP. They “have the responsibility to maintain objectivity in rendering professional services … and must be scrupulous in their application of generally accepted accounting principles” (American Institute of Certified Public Accountants, 2013). Although these rules may cause some disagreement, an accountant must adhere to GAAP regardless of what the client desires. Accounting is a profession which demands strong moral character from those who wish to practice. An efficient, effective, and successful accountant must be prepared to adhere to a steadfast code of ethics.
Of the six Principles in the AICPA Code (Responsibilities, The Public Interest, Integrity, Objectivity & Independence, Due Care, and Scope & Nature of Services) I believe the three most important are Responsibility, Integrity and Due Care. While most of the principles are inter-related it is the customer/ public that must be taken care of first and not our personal interests. To protect the client we must first understand the responsibilities as a CPA. “The overriding responsibility of CPAs is to exercise sensitive and moral judgments in all activities. “ In meeting our obligations it is important to realize that our morals and ethics should be a huge factor in the way we conduct business and treat our clients (Mintz & Morris,
Communication, behavior, and appearance are three are the crucial factors that make a great professional employee, as these are characteristics that can contribute to a company in its goals to be profitable. Most businesses, no matter the industry, sets certain guidelines to which its employees are expected to adhere to, these rules are usually explained in the employee handbook. Professionalism is essentially, the knowledge that an individual conveys about a certain field. At work, professionalism refers to a person doing his or her job with sincerity, and maintaining professional etiquette and ethics in the workplace. Companies specify which behaviors are acceptable, and which are not, when they first start the hiring process for a new employee.
A code of ethics supplied by a business is a specific kind of policy statement. A properly outlined code is, in effect, a form of legislation within the company required by its employees, with specific agreements for violation of the code. Violation of any organizations Code can cause legal accusations or dismissal from a job. The Ethical Standards of Human Service Professionals provides specific “rules” to follow that will protect the client’s welfare with respect and integrity. With the client’s best interest at heart, the helping professional should begin the relationship by establishing mutually agreed-upon goals, while informing the clients of the limitations of the relationship (Woodside & McClam, 2010).
Moreover, The costs and benefits to an organization when they behave ethically. Lastly, I will choose one component from Svensson & Woods's model from "A Model of Business Ethics" and discuss how it is relevant for Anglo-American. Ethical Business Behavior Ethical business behavior refers to an organization actions and policies that are synergetic with "doing the right thing" (Sethi, 2003). In order for an organization to function ethically they must establish principles and set boundaries for employees and the other companies that they are involved in business with. Society as a whole is responsible to conduct business ethically.
Mr. President, everyone at LJB needs to understand the definition of internal control and what is required of them under the SOX law since this law requires a combined effort from top management and employees alike. Internal control “consists of all the related methods and measures adopted within an organization to safeguard its assets, enhance the accuracy and reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Kimmel, Weygandt & Kieso, 2009, pp. 327-328). In other words, effective internal control can help companies achieve established financial goals, prevent loss of resources, and prepare reliable financial statements. Under SOX, all publicly traded U.S corporations are required to maintain an adequate system of internal control by means of developing principles of control over financial reporting as well as continually verifying that these controls are working.