Running Header: Review of Accounting Ethics 1

Review of Accounting Ethics

Latrece Hart
Financial Accounting Acc 557
April 23 2!13
"r# $ar% E# &ell '(A

Running Header: Review of Accounting Ethics 2
Review of Accounting Ethics
Ethics is defined )% *e%gandt +i,,el and +ieso authors of Financial Accounting as -the
standards of conduct )% which one.s actions are /udged as right or wrong honest or dishonest
fair or not fair0 1*e%gandt +i,,el 2 +ieso 2!123# *ith an% )usiness there.s a certain
standard set or code that the )usiness follows when services are perfor,ed )oth inside and
outside the )usiness# 4his is true with accounting# *hen financial accounting is conducted
there.s a certain level of trust the client has in the integrit% of the financial reports provided# 4o
ensure the trust is not )ro5en a standard polic% for ethics is followed# An organi6ation uses this
polic% to govern how the% conduct their )usiness and as a source of reference for what the
co,pan% considers right or wrong# According to the A,erican Li)rar% Association an ethics
code is a guide for what is suita)le )ehavior 1ALA 2!123# As we have found in recent %ears not
ever% )usiness conducts their )usiness a)ove reproach#
7ur societ% has seen a nu,)er of )usinesses co,e under fire for )usiness practices that
were unethical# 4his is evident in the area of accounting ethics# Accounting ethics has )een
)rought into the spotlight and our environ,ent has )eco,e ,ore accepting of )usinesses
conducting the,selves with positive ethical )ehavior# 4he Federal govern,ent has gotten
involved )% increasing legislation with regard to ethical )ehavior# As a result of scandals such as
Enron and *orld'o, the 8ar)anes97:le% Act of 2!!2 was passed in 'ongress to hold
accounting fir,s and pu)licall% held )usinesses accounta)le for their practices and to assure the
pu)lic )etter accurac% and precision was conducted in their actions#
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References
*e%gandt ;#;# +i,,el (#"# 2 +ieso "#E# 12!123# Financial accounting. 1<
th
ed#3# Ho)o5en
=;: ;ohn *ile% 2 8ons#
'ode of Ethics of the A,erican Li)rar% Association# 12!123# A,erican Li)rar% Association#
Retrieved April 22 2!13 fro, http:>>www#ala#org#
4hird entr% would )e here# 'onsider using the 'itation $enerator for help with %our cites# ?ou
can find the 'itation $enerator in the 'enter for *riting E:cellence#