Ethical Issues In Accounting

Your company’s accounting department is known as the numbers people. These people help keep the numbers balanced. They ensure all financial assets and debts are properly reported. They help uphold rigorous standards.

Still, their job is not easy. Even if they are solid mathematicians, they may struggle from an ethical standpoint. They often feel pressure to overlook some things or manipulate figures for their clients’ benefit. They may transpose a digit or make a wrong move that throws the accounting in disarray.

Certified public accountants have to be detail-oriented and ethical. One wrong move could cost them their license and career. Here are some ethical issues that accountants need to be aware of.

Pressure to Manipulate the Figures

Running a business is a lot of pressure. Business owners may try to get their accountant to fudge numbers to make the company look more profitable. However, as an accountant, you have both an ethical and a legal obligation to report a client’s financial situation accurately. Failing to do so can open you up to criminal liability and cause you to lose your job. 

Omitting Information

An accountant might feel pressured to omit information from a financial report if it will make the company look bad. It might seem easier to overlook something, but it’s still morally wrong. Plus, it’s not really helpful to the business. The company needs to be able to make sound business decisions, and it cannot do so if you are lying about numbers. It needs complete financial information, so be honest.

Access to Confidential Information

Accountants naturally spend much of their time dealing with financial information, which is confidential in nature. There are often concerns about how this data is transmitted and used, especially with a lot of accountants working from home nowadays. If you use that information inappropriately, that is an ethical issue that could cause you to lose your license. Insider trading, which refers to the use of confidential information to take advantage of an upcoming growth or drop in the company’s value, is a common issue. So is sharing knowledge of a company with someone else, especially a competitor.

Conflicts of Interest

As a CPA, you may be biased toward certain clients if they are people you know personally (such as family or friends) or you receive bonuses based on company performance. This is considered a conflict of interest and it can make you feel pressured to act a certain way in order to make the client favorable. Be sure you are acting ethically at all times.

Keep Your License With Help From a Tampa Certified Public Accountant Licensing Lawyer

Accountants are known as the watchdogs of the financial world, but even they may struggle with ethics from time to time. What is the best thing to do in their situation?

One wrong move can lead to a licensing issue. A Tampa certified public accountant licensing lawyer from The Law Offices of David P. Rankin, P.A. can help you keep your license. I will work quickly to help you resolve your licensing or disciplinary matter so you can resume your practice. Schedule a consultation by filling out the online form or calling (813) 968-6633.

Source:

smallbusiness.chron.com/accounting-ethics-integrity-standards-24246.html