The History And Future Of Accounting Ethics

Accounting is an important profession. Many individuals and businesses need help managing their finances, so accountants help ensure all financial records are maintained and reported accurately. However, this is a significant responsibility that puts accountants at risk. To protect them, many ethical standards have been put into place.

Accountants hold a lot of power when accessing different types of financial information. This is why there are ethical standards to help prevent any type of abuse or manipulation of numbers and funds.

The American Association of Public Accountants wrote the original ethical code in 1905. Today, nearly 120 years later, that ethical code has been updated and transformed into five subdivisions of principles that all certified public accountants are required to follow. They are as follows:

• Professional accountants are expected to be completely honest, and all information they provide and report on is expected to be truthful. Accountants are also required to never be associated with information that is false or misleading.
• Professional accountants should not be influenced by others or allow conflicts of interest when reporting on financial statements.
• Professional competence. Professional accountants are required to be competent. This means they must maintain their knowledge and skills at the level needed to provide the best service to clients and employers.
• Professional accountants are expected to never disclose any type of information unless there is a legal requirement to do so. They need to be respectful of confidentiality requirements.
• Professional behavior. Professional accountants must comply with all applicable laws and regulations. They cannot engage in any behavior that will hurt the reputation of the accounting profession.

In the past, there have been major accounting scandals involving large American companies. To prevent future fraud, many regulations were put in place. One major regulation in the accounting industry is the Sarbanes-Oxley Act. This act was passed in 2002  with the aim of preventing company personnel from interfering with any type of independent audit being conducted. It also prevents manipulation and fraud and improper influence on audits. It also keeps companies from punishing whistleblowers.

The accounting industry is also looking to the future, especially in terms of artificial intelligence (AI). When adopting AI technology into accounting practices, businesses will still need to adhere to the five ethical values and ensure that it meets industry regulations.

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

Accountants work with money and therefore need to be ethical at all times. There are laws and general guidelines that need to be followed in order for the industry to remain trustworthy.

Stay ethical and keep your license active. If you are dealing with issues, see how a Tampa certified public accountant licensing lawyer from The Law Offices of David P. Rankin, P.A. can assist you. I have extensive experience helping licensed professionals through their most important transactions and proceedings, Call (813) 968-6633 or fill out the online form to schedule a consultation,

Source:

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