Question

Given recent headlines regarding unethical behavior and its impact on the profession of accounting, how can frameworks enhance the public's view of the accountant or auditor?

Answer 1

Accounting without rules and regulations is of no use. An accountant is a professional person who knows and applies rules and regulations of accounting. In order to make accounting data useful to interested parties rules and regulations must be followed. Interested parties include Govt, Local bodies, Employees, Share holders, Creditors, Customers and So on.

Poor an unethical behavior amongst accountants demages image and value of accountant profession as a whole. Accountants are the most important and trust worthy persons.

Poor and unethical behavior amongst accountants means that they are ready to break rules and regulations to benefits themselves or business and betray country/govt.

Poor ethics in accounting result not only in increased incidences of criminal activities, but also hurt the business through harming its reputation and rendering their financial statements untrustworthy and thus useless.

An unethical accountant working at the behest of the business can manipulate the data to commit a number of crimes including fraud and tax evasion.

An unethical accountant is threat for business as well, one who is honest with his own profession can never be honest to his company or companions.

Accountants are required and trained to comply with fundamental rules of his profession.

A strong frame work needed to build in order to curb these unethical accountants and stop these practice in the economy/country, govt and accountant institution or bodies should come together and take necessary action in order to stop these malpractices.

Ethics training for all professional especially for accountants is needed.

Corporates should integrate ethical decision making into performance appraisal process.

Independent audits must be done.

And govt and institutions should monitor members(accountants). Strong action must be taken against those who are found involved in malpractices or those who break code of conduct of accountants profession.