Accounting Ethics – The Importance of Ethical Practices in Business and Personal Finance

What is ethical accounting? The concept of accounting ethics deals with moral and value-based decisions and decisions that the accountant or the accounting agency faces daily practice. Due to the nature of the work of accountants and accounting agencies dealing with the financial information of managers, shareholders and the general public, as well as the accounting and auditing of business, they also meet the highest standards of transparency and morality. the research and the information that they convey. Accounting can be a way of examining how and why a successful or unsuccessful undertaking, but above all, is a public service; those who exercise this should make decisions and decisions that sometimes overwhelm the interests of their clients in the interests of the general public.

Failure to apply ethical standards to accounting makes it possible to manipulate facts and information when used for deception, a person may invest in fraudulent mistakes or a company that fraudulently represents the financiers of shareholders. It is very important for the public to trust in accountants and accounting because their financial future, family or business can be jeopardized.

Why is it important for accountants and bookkeeping companies to be ethical?

Over the years, there have been several major accounting scandals in the United States and around the globe, causing private investors and public sector shareholders to lose billions of dollars, and giant businesses and accounting firms provide falsified or misleading information about companies in which the money was invested. The Enron scandal is perhaps the most recent and clear example of unethical accounting that has a widespread negative impact, including the loss of $ 25 billion in shareholder wealth, the closure of the Arthur Anderson audit firm and the subsequent loss of 85,000 jobs when unethical practices

Ethical accounting is important not only for private companies or individuals because it has reliable information on their financial position but is responsible for the public to have a transparent evaluation of publicly owned businesses. Ethical accounting can help eliminate the major problems caused by dissemination of business or private information, and it saves money and jobs and contributes to the stability of financial markets

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