Question

Importance of ethics in account and auditing

Answer 1

 

Importance of ethics in accounts :

The nature of the work carried out by accountants requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. They rely on the opinion of the accountants who prepared the statements and present a true and fair view of the company. Knowledge of ethics can help accountants to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor's reporting

Importance of ethics in the audit :

Ethics refers to the principles that supervise the behavior of organizations or individual while conducting audits. It is an independent, objective assurance that improves processes taking place in the organization. It helps an organization achieve its goals in a very disciplined manner by examining and enhancing the processes like risk management etc.