Ethics in Accounting and Financial Decision Making

703 Words3 Pages
Ethics in Accounting and Financial Decision Making The accounting profession is part of every business from small businesses to multinational corporations with rules governing the financial reporting for each type of company. Ethics is a critical part of the accounting process, business relies on the accounting data or accounting statements to make decisions that will influence the direction of the company or those of investors. According to "Role of Ethics in Accounting” (2011), “Accounting ethics in the field of accounting refers to the guidelines (consisting of judgments and moral values) that a professional needs to follow while practicing accounting” Essence of Accounting Ethics). This paper will evaluate the review of an article from The CPA Journal discussing the incorporation of professional ethics as part of the accounting curriculum. In addition a description of the Sarbanes-Oxley Act and its influence on accounting and financial decision making will be included. Professional Ethics in Accounting According to Mantzke (2005) “Ethics has always been significant for accounting professionals and the constituencies they serve. CPAs have developed a reputation as trusted business advisors; in part due to the general perception that accounting professionals behave ethically” (Incorporating Professional Ethics Throughout an Accounting Curriculum). The training that accounting professionals receives focuses on the details about account rules, and regulations as it pertains to the laws that govern account principles. What is absent from the curriculum is understand the Ethics involved in the same accounting principles. As described by Mantzke (2005) “The definition of “ethics” differs, depending on the situation. In some contexts, ethics is synonymous with moral philosophy. In other cases, “ethics” refers to the special codes of conduct that
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