Question

Provide a carefully constructed narrative reply to each of the following requirements. You may consider using internet resources beyond your textbook to gather supporting information. Identify several different career paths that one might consider as an accounting professional. Define accounting, and define generally accepted accounting principles (GAAP).

A)Identify several different career paths that one might consider as an accounting professional.

b)What is ethical behavior, and why is it very important to the accounting profession?

c)What challenges might arise that cause an otherwise "good person" to engage in unethical behavior?

Answer 1

According to the Committee of Terminology of American Institute of Certified Public Account:” Accounting is the art of recording, classifying summarising in a significant manner and in terms of money, transaction, and events which are, in part at least of a financial character and interpreting the results thereof.”

According to Bierman and Drebin:” Accounting may be defined as identifying, measuring, recording and communicating of financial information.”

Therefore accounting can be defined as” the process of recording, summarising, reporting and analyzing required financial information relating to the economic events of an organization to the interested users for making decisions.”

GAAP, which stands for generally accepted accounting principles, is the set of accounting standards followed by most U.S. businesses, not-for-profit organizations, and state and local governments, as well as non-U.S. companies that list their stock on U.S. stock exchanges. GAAP guidelines standardize how and what organizations report so that interested parties such as investors, lenders, or potential donors can better understand and utilize an organization's financial statements, and so taxpayers and citizens can hold governments accountable.

1.) Scope

Accounting job can vary from entry level to executive level. Accountant plays the very important role in any business. It is a very crucial part of an organization, for managing payroll, auditing and financial management. Due to the individual demand of different companies, the demand of accountants is increasing. Eligible candidates can find jobs in public, private or non-profit industries and companies. You can opt for various career profiles such as clerk, payroll clerks and accounts clerk.

Profession in accounting is one of the top career choices marked by the students of India.

Numerous options open for the candidates seeking career in accounting. The job of accountants exist in public as well as in private sector. If you are choosing your career to be an accountant then, the career options in this field are available in numbers. You can go for various jobs under this course. One can do job in outside of India also.

Every organization needs an accountant that manage and maintains the financial records of the companies. It enables the organization to judge their success/failure and plan for the future. There are different positions available in this field. Lucrative jobs available for chartered accountants in India as well as in foreign countries.

One can choose teaching profession in this field. Job opportunities are available in accountancy firms, insurance companies and banks. You are also employed in private organizations or companies.

Job profiles in accounting field is as follows:

Finance Managers

Financial Controllers

Financial Advisors

Directors (Finance)

Certified Public Accountant

Chief Financial Officer

Chartered Management Accountant

Company Secretary

2.) Generally, ethical behavior is doing the right thing and adhering to professional standards. While this definition is a good start, it doesn't give specific guidance. That why it's essential to have a codified set of ethical standards for your business. This code can help to provide employees examples of moral quandaries they may face and ideas about how to handle these situations. If you are part of a professional association in your industry, this can be a great resource. Many of these organizations have guidelines that you can use. However, you may need to embark on a do-it-yourself journey for your ethical guide.

An accountant’s most valuable asset is an honest reputation. Those who take the high road of ethical behavior receive praise and honor; they are sought out for their advice and services. They also like themselves and what they represent. Occasionally, accountants do take the low road and suffer the consequences. They sometimes find their names mentioned in The Wall Street Journal and news programs in an unfavorable light, and former friends and colleagues look down on them. Some of these individuals are removed from the profession. Fortunately, the accounting profession has many leaders who have taken the high road, gained the respect of friends and colleagues, and become role models for all of us to follow.

3.) people do bad things in business due to a dynamic interplay of a number of factors

including personal, situational and contextual factors; perception; self-delusion; and

rationalisations. A pre-existing sense of moral obligation and a trigger event that

threatens this obligation plays a significant role in prompting a good person to take a

‘bad’ action that they justify using rationalisations that neutralise their stated values.

The initial decision made is a rational one made using higher order reasoning which is

however distorted by self-delusion and the person’s overwhelming desire to uphold

their moral obligation. The person’s subjective view of justice impacts on this process

and once a decision has been made to take action to ‘balance the scales of justice’ a

sense of self-righteousness holds people in the ongoing process of creating unethical

outcomes. This process becomes a ‘slippery slope’.

Note** Answer above provoided has been cited from various sources, including books, research, internet.