When you look up the definition of ethics, you will be given something to the extent of knowing what is morally right or wrong, good or bad. It can be applied to pretty much everything in life, including accounting.
It helps influence our decisions and we want people to mostly sway towards the good and avoid the bad, but there are just some that would lead astray.
Today, I am going to talk about the company and accounting ethics that every accountant should know. After reading this, you will be well-equipped with the right information to hire accounting services in Malaysia.
When you work as an accountant in a company, you will be given a wealth of information not only about the financials of an organization, but also other information such as the employees that work in the company, as well as other companies that your current organization works with.
It is important for every accountant to uphold client confidentiality and personal integrity at all times. Violation of the professional code of ethics may lead to disciplinary sanctions by a governing body.
The American Institute of CPAs has created some ethics and professional values that every accountant should uphold. They have to protect the reputation of the entire accounting industry to help instill full public confidence in accountants.
Professional Code of Ethics
What separates us from the animals? You might say that it is intellect, but it is actually ‘rules’. We abide by certain rules because, without them, we are just like animals.
That being said, every company should uphold a professional code of ethics so that every employee in the organization knows what they can and cannot do.
The company should always have its own set of ethical standards and they should not leave it up to the employee.
An employee who follows the company’s code of ethics to the tee is said to be a huge asset to the company. Not only is this mandatory, but it will also set a precedent for other companies to follow.
The field of Forensic Accounting specializes in analyzing and investigating white-collar crimes. Examples of such include corporate waste, embezzlement, and misrepresentation of a company’s financial statements, among many others.
Forensic accountants are professionals who uphold ethical standards to the highest degree and they seek for companies and higher organizations to do the same.
These professionals would spend countless hours studying expense and company income statements, earnings statements, balance sheets, among other things.
Establishing Public Trust in Business
There are a lot of business scandals that have happened through the years, which is why governing bodies and large companies must always protect certain business practices and to always strive to uphold the peace and confidence of their stakeholders and customers.
If the public’s trust is shaken, it could signal the downfall of a company. Public trust is gained through strong company integrity and amazing performance that is built through the years. Of course, one should never forget to implement ethical standards at all times as well.