Question

What steps would you take to ensure that all accounting functions were ethical as well as legal? How and to what purpose would each of those steps function?

How would company decision making be improved by those steps?

Answer 1

Following are main steps that can be followed for ensuring that accounting functions are ethical as well as legal:

1. Independence and Objectivity

one of the important components is to make unbiased decisions. Accountants should maintain Independence of facts.

To remain objective and independent it is also necessary to ensure that recommendations are not subject to outside people's influence.

2. Integrity

Integrity means being honest and straightforward. this requires that accountants do not involve themselves in misleading and false information.

An accountant should perform all activities with honesty.

3. Confidentiality

An accountant should keep all information confidential until it is legal duty to disclose such information.

4. Professional Competence

An Accountant must update his knowledge as per change in technology and legislation and perform his accounting duties accordingly.

Consulting and meeting with other accountants is a good way to enhance knowledge.

5. Professional behavior

An Accountant must behave professionally. and they require to comply with all the rules and regulations laid by the government.

One can perform all accounting activities legally and ethically by meeting all the above compliances.

There is improvement in company decision making if all the accounting activities are performed ethically and legally.

Managers who ignore ethics run the risk of corporate liability in today's increasingly tough legal environment.

clear Business ethics provides strong public image.