Objective 1.03 Understanding Ethics Needed

For Employment In Accounting

1Objective 1.03 Understanding Ethics

Ethics is the study of right and wrong and and how people choose what is morally good and bad.

Business ethics refers to how a company uses a code of conduct, which is designed to encourage ideal behavior when making decisions.

2Objective 1.03 Understanding Ethics

AICPA – American Institute of Certified Public Accountants

IMA – Institute of Management Accountants

IIA – Institute of Internal Auditors

3Objective 1.03 Understanding Ethics

Integrity

Objectivity

Independence

Competence

Confidentiality

4Objective 1.03 Understanding Ethics

Accountants must choose between right and wrong.

Accountants are responsible for entering correct entries.

Accountants are responsible for true and correct financial statements.

Integrity is necessary for accountants to build trust in regards to their professional judgments.

5Objective 1.03 Understanding Ethics

Accountants must be: ImpartialHonestFree of personal conflicts

Accountants must not be influenced by personal interests.

Accountants should behave in a way that does not suggest inappropriateness.

6Objective 1.03 Understanding Ethics

Accountants do not have an interest or profit financially from the companies they audit.

Accountants must have the public’s confidence in their professional services.

7Objective 1.03 Understanding Ethics

Accountants should be knowledgeable in their profession.

Accountants must have the skills necessary to perform their jobs.

Accountants must have experience in their field.

Accountants are expected to keep abreast of current laws by continuing education classes.

8Objective 1.03 Understanding Ethics

Accountants must not share private information regarding their clients.

Accountants are expected to protect personal and private information regarding their clients.

An accountant should not use information learned for personal gain.

9Objective 1.03 Understanding Ethics

Glencoe Accounting 1st Year Course, McGraw-Hill, 2007.

10Objective 1.03 Understanding Ethics