COMPARATIVE ANALYSIS - Do Accountants Need to be Ethical

COMPARATIVE ANALYSIS - Do Accountants Need to be Ethical

Executive summary 

This report is a comparative study in the context of ethical standards in the accounting profession. The main objective of this study is to examine that how accounting ethics have an impact on the accounting profession. The report is based on the annotated bibliography of the former assignment on the similar topic of study. In this report, the comparison has been done with reference to the different sources of study by providing a brief evaluation of the sources, in terms of discussion on the ethical standards of accountants on the basis of view points of different scholars that are used in the similar type of study.

Introduction

A number of situations in terms of ethical standards of accountants attempt to resolve the issues by choosing the appropriate actions. A well-performed business or profession has to consider the high standards of ethics in order to be in the fast pace of business. The accounting and financial firms have to consider the ethical standards in the industry is of utmost importance for maintaining the professionalism in the business. This report highlights the viewpoint of different scholars on the ethical standards in accounting business, and on that basis, a comparative study has been conducted on the viewpoint by evaluating their viewpoint from different contexts.

Discussion 

The main effort of accounting ethics in terms of ethical values is in holding good practice and professional behavior. According to (Yarahmadi et al.,2015), the ethical responsibility in accounting scenario is considered as the major index of an economy as no major activity is possible in the absence of accounting. The author discusses the various features of accounting in terms of accepting the responsibilities, and by offering the quality of services that are offered by the accountants to the society. Therefore an accountant needs to be reliable , ethical and unbias in the profession, as the society is very much reliable and has lots of expectations from the accountants. On the other hand in the viewpoint of  (Voss,2017), the researcher has made an argument in terms of ethical accounting standards by maintaining the significance of accounting in the economic activities as the decision will be taken on the basis of reliable information that will be presented to the business parties by accountants for making an important decision in business. Therefore the stress is made o the ethical code of conduct of accountants in terms of short and long-term goals of a business. In the viewpoint of (Grace et al.,2015) the researcher  focus that ethics is an important part for the accounting and economic activities as an accountant has to keep track of the financial strength of the economy for making the economy forward in terms of the production of goods and services. The stress is also made on keeping the authentic record of the financial activities of business for the overall development of the economy, as the economic development is very much based on the reliability of accountants. The focus is also made on the ethical values in terms of personal experience on which everybody has to agree, in terms of accountability of accountants. According to (Copeland et al,2015), the discussion has been made in terms of the importance of ethics in the leadership context of accountants. Due to the unethical standards adopted by the organizations the business scandals are growing in a continuous way as the scandal of Satyam computers in India is the recent example of unethical standards in accountancy. The researcher also focuses on the viewpoint of ethical standards of accountants , as it is the responsibility of accountant to provide the reliable and authentic data to the organization , which includes the management and the various stakeholders of an organization. He further argued that the standards in accounting are essential for minimizing the delinquency in the business, so the foundation of ethical standards will be included in the accounting education. Purnamasari, et al (2015)concludes that there are significant differences in the auditors of Japan, USA, and Australia. They further stated that the American accountants show the negative attitude in terms of informal commission , whereas the Australian accountants have different ethical standards in terms of accounting standards, due to the varied social, cultural and economic background. In Australia, the number of female accountants is comparatively more in terms of male accountants, as the women are seen more ethical in a profession in comparison to males. In the  similar study conducted by (Dickerson, et al 2014), the researcher focus on the viewpoint that in addition to the ethical education, various factors like age, gender, experience, and culture also impact on the ethical standards of the person. In this context, the study has been conducted to evaluate the perception of accountants in terms of professional ethics, for the identification of the factors that will influence the ethical attitudes. The study is related to the advancement of the subject by identification of variables, that will have an influence on the attitude and conscience of the accountant , for creating and generating the credibility of information in terms of accounting practices and standards.

Analysis and Recommendation

On the basis of the discussion that has been based on the literature review and the viewpoint of various researchers, the findings that has been analysed from the report is that the ethical standards are of utmost importance in the accounting profession, as the emphasis will be made by all the researchers on adapting the ethical standards in accountancy.The ethical standards are of necessity in accountancy due to the economic upliftment of nation and economy on the whole. The recommendations that will be analyzed from the study is that the gender , cultural and societal factors also play an important role in the adaption of ethical standards in the profession.The accountants also have to pay attention in maintaining the ethical code of conduct  in a profession as the members have to make a valid declaration of the compliances in terms of an ethical code of conduct in a periodic manner of a year or two.

Conclusion

To conclude the study ,on the basis of findings of a study , the study reveals that the ethical code of accounting ha strong influence on the code of conduct of accountants. It is imperative to adopt the ethical code of conduct in the accountancy profession , as it is the responsibility of this profession to provide the reliable and authentic information for minimizing the scams and frauds in the business. The report also stated that there are many routes to becoming the professional and ethical accountant , but it is significantly dependent on the culture and values of the institution and countries. 

References

Yarahmadi, H., & Bohloli, A. (2015). Ethics in Accounting. International Journal of Accounting and Financial Reporting, 5(1), 356-360.
Voss, G. (2017). Certificate of Ethics in Accounting and Professional Independence of Accountants. European Journal of Economics and Business Studies, 9(1), 212-220.
Grace, D., & Cohen, S. (2015). Business ethics
Copeland, M. K. (2015). The importance of ethics and ethical leadership in the accounting profession. In Research on Professional Responsibility and Ethics in Accounting (pp. 61-98). Emerald Group Publishing Limited.
Purnamasari, D. I. (2015). The Ethics of Accounting Students A Comparative Study. Journal of Economics, Business and Accountancy Ventura, 14(3), 269-276. 
Dickerson, C. (2014). Ethical decision-making in public accounting: Investigating factors that influence auditors' ethical sensitivity. The Claremont Graduate University.

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