Ethics Standards And The Field Of Accounting - 950 Words

Professional ethics are an absolute necessity in the field of accounting. Businesses rely on accountants to accurately report their financial information and give sound advise and consultation in regards to their business. There are standards and rules set in place to ensure that ethics and information is reported accurately. Laws and repercussions are created place to deter unethical and illegal accounting practices, although it still occurs in the business world on many levels. The field of accounting has a code of ethics for very important reasons. Investors and creditors need assurance that the financials of the company they are investing in are accurate. If the financials of a company are not created accurately or if the information is falsified and inaccurate, investors and creditors have the potential to lose lots of money. Ethics standards and controls have increased in more recent years due to a number of scandals between large corporations. Enron is one of the most know n examples, as many investors lost enormous amounts of money and life savings due to embezzlement and falsifications from the company and the accountants handling the financials. Accountants in each state must register with the state boards in order to legally practice in that state. These boards relay ethical standards that certified accountants are expected to adhere. An accountant’s license can be suspended if the codes of ethics are violated. One of the main controls set in place toShow MoreRelatedEssay on Government Regulations: Accounting1676 Words   |  7 PagesCharlie Munger once stated, â€Å"You have to know accounting. It’s the language of practical business life.† This statement emphasizes that accounting has become the center of the business world. 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