Role Of Ethics In Accounting

What is the role of ethics in accounting? To understand it, first let us analyse what is the essence of accounting ethics.

Essence Of Accounting Ethics

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. Just like the professionals in the field of medicine or law, an accounting professional also needs to strictly adhere to the ethics that have become a norm in accounting. The people who receive the services of an accounting professional not only rely on his skill and ability, but also on his professional integrity. People using the service of accounting professionals rely on their professional competency to take decisions and in the process also relies on the ethics followed by them.

It is due to the above reasons that the accounting professionals developed a code of conduct that all accounting professionals need to follow. The essence of the ethics lies in its use. The code of conduct or ethics entails an accounting professional to adhere to high degrees of self discipline which even goes falls beyond the legal precincts. Whenever an accounting professional becomes a member of organizations like IMA, IIA and CIA, they are directed to follow the code of conduct and ethics.

It is the responsibility of the accounting professionals to stick to the code of ethics, i.e. this is the role of ethics in accounting, so that nobody loses confidence on this noble profession. The essence of accounting ethics is in the maintenance of professional objectivity and integrity.

Role of Ethics In Accounting

The role of ethics in accounting is a guideline for the accountants to follow certain rules for conducting the job of accounting in a fair way. This is just to facilitate the public confidence in their accounting. There is a set of guidelines that has been set by the AICPA for the field of public accounts. The IIA (Institute of Internal Auditors) and also the IMA (Institute of Management Accounts) has issued their own code of ethics to inculcate the set ethics in the field of accounting. It is the responsibility of all Professional accounting organizations to direst all their members to follow the standard set of ethical guidelines.

The biggest question that the accounting profession faces is whether it is possible to teach ethics or not. Well, it has to be inculcated at some of time in one’s life because there is nobody in this world who comes with an inbuilt ethics mind and soul. So, it is the family, society, schools, colleges and professional organizations that carries on the continuous process of embedding ethics in a person. Same is applicable in the case of all accounting professionals. The codes of conduct that the professional organization expects their members build a sense of ethics in a professional.

Ethics is the need of the day for the profession of accounting; more so, when the world is passing through a turbulent economic time.

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