Accounting Code of Ethics

aCCOUNTING cODE of eTHICS

LaToya Wallace

AC504

APril 10, 2012

Accounting Code of Ethics

Introduction

The accounting system is ever changing and constantly evolving. Therefore, it is extremely that accountants adhere to very high ethical standards. The code of ethics for accountants “guides those in the profession to behave in a respectful, controlled and moral way. Clients need to have confidence in the business practices of professional accounting firms. A clear ethical code ensures that accountants practice a high standard of business that is exceptional in integrity and professionalism (Maughan, 2012). In its most basic form, an “accountant agrees to uphold the profession’s ethics and serve the public” (Maughan, 2012). Accountants are required to conduct themselves honestly, ethically, and with absolute integrity at all times.

Compliance With Laws, rules, and regulations

“There are many rules and regulations in the field of accounting. Many of these are created for the interest of the public, who rely upon a company's financial statements and accounting practices as the basis of their investments” (Creative Commons Corporation, 2007). An accountant must be aware of the laws, rules, and regulations that affect their daily job responsibilities at all times.

Financial Reporting

Maintaining true and reliable financial statements is the main objective of all accountants. It is of utmost importance that accountants present financial information that is reliable and represents a true financial picture of a company’s operations based on objective principles and not influenced by the interest of managers, agents, or auditors. In addition, accountants must ensure that all financial reports presented are in compliance with the governing bodies that establish regulating and reporting standards for the accounting industry such as the Securities Exchange Commission and the Financial Accounting Standards Board.

Competence

“According to the...