Ethics in Accounting

Ethics in Accounting

University of Phoenix

Fin 319

Ethics Review

Implementing and upholding a code of ethics in accounting is especially important in the accounting profession. This is due to the information and judgments that accountants provide to businesses. There are two business organizations for accounting professionals, the American Institute of Certified Public Accounts and the Institute of Management Accountants (Norton, 2009). Both organizations have published ethic codes that their members need to live by. These three codes are: principals of professional conduct, general accounting standards principals and a section on independence, integrity and objectivity. These codes have been recognized as key characteristics for the accounting professional if followed these individuals should be successful and ethically responsible within their position. If any members of these organizations are in violations of these codes they are subject to disciplinary actions of the organizations. These actions include disbarment for the organization, suspension, and in severe cases the loss of their licenses (Norton, 2009). The federal and state legislation have established laws that these professionals need to follow. If they do not follow these laws disciplinary action can be enforce by government organizations.

Recommendations

A perfume company called Fragrance Cove which was a family owned and operated business employed over two thousand employees from their corporate office to their part-time associates was very successful within the perfume industry for several years. The company was supply reports showing their shareholders and employees their budget, the cash flow, and inventory this was a regular practice quarterly until they went to a larger accounting company. The new company did not supply this information quarterly it was only yearly. Due to the company not following up...