Ethical Codes For Professional Accountants - 1470 Words

Having competent professional accountants are invaluable assets to the company because they are able to adopt a pragmatic and objective approach to solve issues. Accountancy professionals assist business executives with corporate strategies, provide advice with product cost, improve mitigate risks of the company. Public accountants not only serve the interest of the company but also have the duty to the general public. Therefore, they have a key role in helping organizations to act ethically. Ethical codes for professional accountants globally compels, regardless of the roles that they perform, to uphold values of integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. However, many times,†¦show more content†¦Since then, Enron has become a symbol of corporate fraud and corruption. With the bankruptcy of Enron, undoubtedly, the investor received a lot of lost, especially those who have a large number of Enron stock. In accord ance with US law, after filing for bankruptcy protection, Enron s assets will give priority to pay taxes, repay bank loans, pay staff salaries. After paying all these, the company is already worthless and the investors certainly lose everything. After Enron’s accounting fraud, the government created the Sarbanes -Oxley Act of 2002, a United States Federal law that requires top management must individual certify the accuracy of the financial information. Even though the creation of Sarbanes- Oxley Act ensures the credibility of the published financial reports, the public trust in the accounting and assurance industry has decreased significantly. In addition to the accounting fraud that had happened, technological innovation has decreased the face-to-face communication between accountants and their client. Thereby, creating a disadvantage for the company to build a strong trust relationship with their client. Nowadays, technology is an essential part of business operation. Many accounting firms utilize technology devices such as emails and phones to communicate with their clients. However, one of the most effective communication is face to face communicationShow MoreRelatedA Code Of Ethics Should Do More Than Establish Minimum Acceptable Standards969 Words   |  4 Pagesthat a code of ethics should do more than establish minimum acceptable standards. As noted that, ethical behavior in any profession is about making correct judgment or decision that are based on established code of ethics. Businesses always drive the behavior that is expected in an organization. Successful businesses try to build high ethical culture from t he top management level to the lowest and setting the standards for acceptable and unacceptable conduct in an organization. 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The Code of Ethical Conduct serves the highly practical purpose to notify the public that the profession will protect the public interestquot; (Carey, Doherty: p 3). When people need a doctor, a lawyer or a certified public accountant, they seek someone whom they can trust to