Purchase Solution

importance of ethics in accounting/financial decision making

Not what you're looking for?

Ask Custom Question

Using the Internet, and/or other sources, locate an article discussing ethics in accounting and financial decision making.

Can a small review be done w/ siting information ( this does not have to be extremely long) / like a summary of the article

Discuss how the concepts of the article relate and/or apply to an organization.

Make recommendations for improvement for an organization based on the article.

Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making

--- SMALL REVIEW

Purchase this Solution
Solution Summary

Explain the importance of ethics in accounting and financial decision making

Solution Preview

The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services. In the accounting field, the AICPA maintains and enforces a code of professional conduct for public accountants. The Institute of Management Accountants (IMA) and the Institute of Internal Auditors (IIA) also maintain a code of ethics. Professional accounting organizations recognize the accounting profession's responsibility to provide ethical guidelines to its members.

The main reason for having ethical guidelines is not to provide a cookbook solution to every practice-related problem, but to aid in the decision-making process for situations that involve ethical questions. Business persons will encounter novel situations in their jobs and will need ethical guidelines to handle them effectively. Ethics codes are necessary to provide such guidance.
(source: http://acct.tamu.edu/smith/ethics/ethics.htm)

While disclosure is an important component of any discussion of accounting ethics, some would argue that the more complicated ethical issues arise due to features external to the profession itself, which cause moral difficulty for an individual and/or professional. In other words, the chief ethical difficulty for the accountant has its roots in independence and objectivity. Whether an accountant is viewed as an employee, management, consultant or independent auditor, conflicts of interest arise based upon these primary virtues of objectivity and neutrality that are associated with the accounting professional.

These conflicts are certainly apparent to the public ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Financial Ethics

    Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making. 6. Properly cite the article in your review.

  • internal accounting system

    The objectives of an internal accounting systems are that it should support protect and encourage sound management practices. In general the internal account system supports financial decision making but it also support general decision making.

  • Important information about Ethics Article Review

    Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making.

  • Ethics Article Review: Ethics in accounting and financial decision-making

    Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision-making.

  • Accounting Environment: the accounting cycle and the 4 types of financial statements

    Explain the importance of ethics in accounting and financial decision making. Accounting Cycle ~ The steps include: 1. Recording daily transactions in a journal. 2. Posting the journal entries to the accounts in the ledger. 3.

  • Significant Accounting Estimate

    222048 Significant Accounting Estimate What is an example of a significant accounting estimate? What is the importance of these estimates? How do ethics play into the decision making process?

  • Sarbanes-Oxley and financial ethics

    121143 Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making.

  • Internal Accounting Systems

    This information is vital to the making of quality accounting data on a well-timed basis and the communicating of that data to the decision-makers.

  • internal accounting system

    Internal accounting, unlike financial accounting, is not done for external parties but for internal decision making of the organization and is confidential information for use by the company's management and employees only.

View More Related Solutions