The world of accounting is strongly dependent on ethical behavior. Accounting ethics is based upon the morals and judgments one makes and how they may apply to accountancy. This method of ethical behavior in the accounting world was first introduced by a man by the name of Luca Pacioli and was later expanded different professional organizations, government groups, and so forth. Without ethical behavior in this field, there would be scandals of all severity levels constantly going on. For years people have gone to accountants depending on them to prepare their financial records. These people did this in the belief that their accountant had all the knowledge necessary to prepare their records accurately. However, the question is if ethics is so highly encouraged in the accounting field then why are scandals and unethical behavior still occurring?

Why ethical behavior is occurring in accounting fields today is a question that many still ask. Even though ethical behavior is encouraged, it is apparent that it is not always practiced. When faced with an ethical predicament, often times people choose the wrong path and go against the ethical codes of accounting. The question that always comes to mind is, after all one’s training in the accounting fields, why would an accountant choose an unethical path? The answer’s simple really, greed. Accountants that choose to commit an act of unethical behavior usually believe that the gains will be greater for them than the consequences would be.

With many corporations either collapsing or going bankrupt, people tend to point the figure in here are constantly Over the past years there have been a number of scandals reported around the globe. Needless to say, these scandals have directed a tremendous amount of criticism towards the profession. As a result there has been a rapid increase in the standards of professionalism set for accountants.

Accountants have one of the most demanding jobs when it comes to ethical behavior. Every day they are faced with decisions where companies may ask them to hide financial debt, make income look lower so they don’t have to pay as much tax, or deal with bribery on several other levels. When one doesn’t have the will power to say “no” and pick the ethical path, many people may be affected by this. Depending on the size of the company, shareholders could lose money. The company committing fraud may be shut down as well as the firm who failed to notice resulting in a potential loss of thousands of jobs.

Groups such as the AAPA & SEC, upon other organizations, are constantly updating the rules and regulations in which accountants must abide. In order to encourage ethical behavior, it has been decided that in most college universities the subject of ethics and its consequences will be thought to all students and practiced before entering the field of work. Although these courses are being taught throughout the universities, companies across the nation and worldwide have taken it upon themselves to have mandatory ethical trainings for all employees.

In order for a company to increase their wealth at all, they must have the trust of the public. In the long run, a person of the public wants to know that the company’s financial statements have been prepared in an ethical state. There are so many rules, regulations, and codes in which accountants are supposed to abide by, yet we still witness unethical behavior in the accounting world. With the knowledge of appropriate ethical behavior growing in both the educational and business worlds, hopefully scandals will continue to subside. However, will they ever completely stop? That is a question which only the future can tell.

References:

Capistrano, Francis Y.  “Weekender; Educational system responds to challenges”.  8 Oct 2004.  Print.

“Ethics Training Urged”.  The Financial Post. 25 June 1993. Print.

Frattini, Doug. “Accounting: from Pacioli to Enron”.  The Daily Herald-Tribune.  18 May 2007. Print.