Assignment Procedure

- Submitted To : Myanmar Entrepreneur SMEs Institute (MESI)

- Academic Partner : Association of Business Executive (ABE UK)

- Diploma Program : Executive Diploma in Business Administration and

Management (EDBAM)

- Subject Name : Financial Management

- Duration : 2 Week

- Given Date : 5.12.2020

- Submission Deadline : 19.12.2020

- Submitted Date : 18.12.2020

- Submitted By : Mr.Htet Aung Khine

- Batch Name : EDBAM Batch (3 )

Assignment Paper Rules

Page : 5 to 7 Pages Font : Times New Roman Line Space : 1.5

Size : ( 12 )
Remarks : The student must be own idea and 50 % can reference from internet.

Assignment Question:
You are a new accountant of your selected company. You have to report the basic accounting
theories and concepts to the Finance Manager.
Your report has the following topic:
- Describe the need for the accounting professionals to adhere to the ethical standards and
guidelines.
- Explain the importance of the conceptual framework for accounting.
- Discuss how modern-day bookkeeping and the double entry system evolved and their
importance.
Introduction

Accounting is a service activity. Its function is to provide quantitative information, primarily

financial in nature, about economic entities that is intended to be useful in making economic
decisions. Accounting is the art of recording, classifying and summarizing in a significant
manner and in terms of money, transactions and events which are, in part at least, of a financial
character, and interpreting the results thereof.

Accounting Ethics and Integrity Standards

No business is exempt from ethical behavior and practices. However, those dealing with money
and sensitive personal and company information must adhere to strict ethics and integrity
standards. This is imperative to gain and retain the trust of clients, co-workers and business
partners. Integrity is generally considered one component in the ethical standards of accounting
practices.

Professional Skill and Competence

Accounting is a detail-oriented career that requires knowledge and skills to do the job correctly.
Mistakes lead to problems with investors, business partners, finance lenders and the Internal
Revenue Service. It is imperative that anyone working at any level in accounting understands
what is required of the job and how to execute it properly.

Confidentiality of Information

Accountants see the good, the bad and the ugly of a company or a person's financial situation.
Clients have a right to know that this information is kept in the strictest of confidentiality and is
only shared with other professionals if consultation is required to address a specific problem.
Failure to keep information confidential could result in bad publicity and possible defamation of
a company or person. It could also open the door to fraud, identity theft, and other illegal
activities if the information is shared with the wrong parties.

Honesty and Integrity Standards

Integrity covers a lot of different ethical standards that include honesty and professional conduct
in all circumstances. An accountant should always present the facts objectively and refrain from
slanting information in a misleading way. An accountant who doesn't demonstrate a high level of
integrity isn't trustworthy and loses the confidence of clients.

Independence and Objectivity

Most accountants are partnered or licensed to advise clients on investing and financial services.
It is important that accountants maintain a fiduciary responsibility, seeking an objective solution,
and providing advice based on that objectivity. It has been a rampant problem in the financial
services industry that products were recommended to clients simply because they provided the
highest compensation to the adviser. Accountants must be objective with independent
viewpoints, especially since they are dealing with the financial details of the company.

Professionalism and Demeanor

Professionalism is a standard that goes beyond the office. Whether at a networking event or a
party, maintaining a professional demeanor is good business. Accountants should be law-abiding
citizens who don't have bad habits, such as gambling, that could put them in a risky position to
compromise client information. No one trusts an accountant who gets drunk at a party and starts
spouting off information that probably is bound by confidentiality standards

The Six Guiding Principles of Accountants

We trust accountants to handle their jobs -- managing not only our financial affairs but also those
of the companies in which we invest and the governments we need to trust -- in an ethical,
independent and, above all, honest manner. To foster confidence, the American Institute of
Certified Public Accountants developed its six guiding principles to help accountants deal with
potential conflicts in going about their profession.

Responsibilities

"In carrying out their responsibilities as professionals, members should exercise sensitive
professional and moral judgments in all their activities."
This principle directs accountants to work collaboratively with other accountants to improve both
the image and practices of accounting. Part of that responsibility includes public education,
helping both clients and the general public understand the role, standards and limitations of
accountants.

The Public Interest

"Members should accept the obligation to act in a way that will serve the public interest, honor
the public trust and demonstrate commitment to professionalism."

Rather than advocating for one segment of what constitutes accounting's public -- clients and
employers, creditors, governments, investors, and the business and financial community at large
-- accountants must strive to represent the collective well-being of all those parties. Bottom line:
When the overall public good is served by employing all of accounting's guiding principles, the
best interests of an accountant's client or employer get served in the process.

Integrity

"To maintain and broaden public confidence, members should perform all professional
responsibilities with the highest sense of integrity."

It's easy enough to say accountants shouldn't stick phony numbers in a balance sheet. More to the
point, accountants also need to avoid even subtle misrepresentations, including misstatements by
omission or by ignoring obtainable information, in carrying out their duties. An accountant
should never stop short of obtaining all sufficient data to provide a reasonable foundation for his
conclusions or recommendations.

Objectivity and Independence

"A member should maintain objectivity and be free of conflicts of interest in discharging
professional responsibilities. A member in public practice should be independent in fact and
appearance when providing auditing and other attestation services."

Independence governs an accountant's ability to work with integrity and objectivity.

Independence also is highly subjective. Although an accountant may demonstrate independence
in appearance, acting independently in fact requires an accountant to be free of even potential
conflict, both in action and in mental attitude, a particularly immeasurable standard. The institute
suggests a pragmatic approach in dealing with independence, allowing an accountant to footnote
a job report disclosing possible -- even potentially implied -- lapses in independence.

Due Care

"A member should observe the profession's technical and ethical standards, strive continually to
improve competence and the quality of services, and discharge professional responsibility to the
best of the member's ability."

This principle exhorts accountants to regularly pursue continuing education, especially regarding
generally accepted practices in the profession. It also expands the definition of responsible and
ethical work to include offering service only in the accountant's area of competence and within
her level of expertise.

Scope and Nature of Services

"A member in public practice should observe the Principles of the Code of Professional Conduct
in determining the scope and nature of services to be provided."
To forestall problems arising during the performance of a job, this principle encourages
accountants to accept jobs only from clients willing to work within the technical, ethical and
professional standards included in the guiding principles.