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    Ethical standards exist in accounting

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    Why do ethical standards exist in accounting?
    What role does the cost principle play in Accounting?
    I just need a better understanding and a 2nd opinion on this matter.

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    Ethical standards exist in accounting in order to avoid frauds, manipulations and misappropriation of financial statements and to prevent such practices which misguide the people using the statements.

    There has been so many frauds related to accounting standards and practices such as that of Enron, MCI Worldcom, etc., which has led to an increased concern among the people with respect to fairness of accounting practices, standards and disclosures. There has been an increasing importance on ethics now a days due to a sudden upsurge of ...

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    Ethical standards in accounting is discussed in this solution.