The Mentors - Ethics in Accounting - 46 Mandeep Kumar(A), 105 Pratibha Pathak(B), 172 Shiv Sparsh(C)

INTRODUCTION:(by Mandeep Kumar)

To understand the role of ethics in accounting we must 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.

DISCUSSION:(by Pratibha Pathak, Mandeep Kumar, Shiv Sparsh)

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 in accounting is of utmost importance to accounting professionals and those who rely on their services. Certified Public Accountants (CPAs) and other accounting professionals know that people who use their services, especially decision makers using financial statements, expect them to be highly competent, reliable, and objective. Those who work in the field of accounting must not only be well qualified but must also possess a high degree of professional integrity. A professional's good reputation is one of his or her most important possessions.The general ethical standards of society apply to people in professions such as medicine and accounting just as much as to anyone else. However, society places even higher expectations on professionals. People need to have confidence in the quality of the complex services provided by professionals. Because of these high expectations, professions have adopted codes of ethics, also known as codes of professional conduct. These ethical codes call for their members to maintain a level of self-discipline that goes beyond the requirements of laws and regulations.

CONCLUSION:(by Shiv Sparsh, Pratibha Pathak)

Our belief is that ethics instruction should be incorporated into the accounting curriculum. This study provides additional support for investing in ethics instruction for accounting students as well as directions for future research. As accounting educators continue to refine methods and techniques of teaching ethics, our students will benefit. In turn ethics instruction will benefit the firms that employ our students.