Honestyand ethics are essential for the accounting professional
Honestyis the act of giving truth information. Business managers rely onhonesty accounting with no panic of subjective reporting. Honesty inaccounting should be the core value for the profession to allowpotential decision makers to make the right judgments. Linda Ray(n.p), came up with guidelines to ensure honesty which includes,audits where we use auditors to certify financial reports,reputational rest on honesty where accountants keep their reputationand keep their jobs grow based on a pattern of honesty.
Ethicson the other hand are moral principles that guide the conduct ofindividuals (Warren,Reeve & Duchac, 6). Code of ethics providesethical requirements for professional accountants. For the success ofprofessional accountancy, a self-imposed code of ethics is essentialto command the respect and confidence of the general public. A clientbefore engaging to the services of a professional requires to beassured that he/she have the required competences and is a person ofhigh integrity. As stated out by ACCA body of accountancy (1), codeof ethics is based on five principles integrity, objectivity, andprofessional competence and due care, confidentiality, andprofessional behavior. An ethical manager and accountant is honestand fair. However, they meet pressure from supervisors to meetcompany and investor expectations. (Warren,Reeve & Duchac, 7).This can be as a result of failure of individual character or theculture of greed and ethical indifference.
Inconclusion, due to increasing competitive pressure in marketplace formost organization, regular supply of relevant management accountinginformation is arguably more important than ever. This has there ledto emergency of regulatory bodies which regulate the accountingprofession, the well-known being International Accounting StandardBoard (IASB), TheInternational Federation of Accountants (IFAC) among others.
ACCA.ACCALog Book. (2011).1. Print.
Ray,Linda. “Importance of Honesty in Accounting.” Chron.(2014):n.pag. Web. 5 Dec. 2014.
Warren,Reeve & Duchac. FinancialAnd Managerial Accounting 11e(2012): 6 & 7. Print.