It should be understood however, that these sets of rules are minimum guidelines or criteria guidance, because the concrete actions of the public accountant or auditor in particular situations, lies in the general principles of codes themselves and the principles of ethical science enrolled in the within man.
A distinctive feature of the audit profession is the recognition and acceptance of the duties to act in the public interest. Therefore, the responsibility of the auditor is not limited exclusively meeting the needs of individual client or employer. Acting in the public interest, the auditor is obliged to respect and obey the rules of professional ethics of auditors. This Code of Ethics for Auditors is a code of professional ethics auditor, i.e. established and widely used in the conduct of the audit rules of conduct of the auditor and audit firm is not required by law. As it is not possible to determine the rules of professional ethics for all situations and circumstances that can confront the auditor in the conduct of audit activities, the Code contains only the basic rules. Abstract There are two basic directions in ethics, ethics of the mind that justifies an action by reference to intention and ethics of the consequence that justifies an action by reference to results. The foundation of civilized society is based on the ethical values and without these values; the civilized society can fall rapidly. The main purpose of ethics in business is directing men and women to obey code and conducts that encourages the people to have confidence in the products or services offered to them. In the field of accounting, it is the responsibility of the professional accounting organization to provide comprehensive guidelines to the organizations so they can perform their operations by considering ethical values. The purpose of this paper is to explain unethical accounting practices Table of Contents Summary 1 Abstract 2 Discussion 4 1. What is Ethics? 5 2. Accounting ethics 6 3. Ethics & professional practice 6 4. Professional accountancy bodies 7 5. Reason for Developing Ethical Standards 8 5.1. Standards of Reporting 8 5.2. To Ensure Integrity 8 5.3. To Ensure Objectivity 9 5.4. To Maintain the Confidentiality 9 5.5. To Improve the Productivity 9 5.6. To Ensure Professional Competence & Due Diligence 9 5.7. Maintaining Professional Behavior 10 6. Why Public Interest and Public trust are Important? 10 7. Why ethics are important in the field of accounting? 10 7.1. Fraud 11 7.2. Accuracy 11 7.3. Macro Economic Issues 12 Conclusion 12 References 12 Understanding the Nature of Ethics in the Landscape of Accounting Introduction Ethics related to business operation is currently treated as burning question due to thrilling scandals that have caused economical turmoil’s in several countries. These astounding business scandals raise many questions about the integrity and morality of accountants and businessman. It is critical argued by many economists that accountants are the main reason behind the deterioration of the ethical standards of a business. Following the collapse of WorldCom and Enron in year 2002, International Federation of Accountant (IFAC) published a report with title “Rebuilding public confidence in financial reporting – an international perspective”. Findings of the report concluded that financial disorders of corporations were the upshots of problems related to improper management of ethical standards. The report identified that to increase confidence of public in financial repo