PRESENTATION ON “ACCOUNTING ETHICS”
ACCOUNTING
Accounting is systematic recording of transactions and presentation of those transactions in the form of organised data from which the meaningful conclusions can be drawn for the purpose of decision making by management , various stakeholders, financiers and govt. authorities.
ETHICS
Ethics are those moral principles which guide the conduct of individuals . It is the question of deciding between doing what is right and doing what is wrong . Thus it has to do with feeling, religious beliefs , legal requirements and most important i.e. the standards of behaviour our society accepts.
ACCOUNTING ETHICS
If accounting and ethics are merged then it becomes the accounting ethics. From the context of accountants , accounting ethics refers to the behaviour which is expected from accounting persons.
Accounting ethics is the practice of behaviour that does not allow for intentionally inaccurate or false accounting practices. This pertains not only to following the laws of land and policies of organisation but also to preparing financial data as accurately, transparently and honestly as possible in all situations.
NEED AND IMPORTANCE
Do you know how MANAGEMENT INFORMATION SYSTEMS ARE PREPARED? It is prepared on the basis of recordings of transactions in the accounting books/software. And if it is incorrect what will happen? Obviously it will lead to incorrect MIS and eventually decision making based on wrong information leading to drastic consequences which may even threaten to the existence of organisation itself.
Enron becoming bankrupt was the result of failure of accounting ethics and seriousness was so great that it led to the passing of Sarbanes Oxl ...