Objective 1.03 Understanding Ethics Needed
For Employment In Accounting
Objective 1.03 Understanding Ethics
1
 Ethics is the study of right and wrong and and how
people choose what is morally good and bad.
 Business ethics refers to how a company uses a
code of conduct, which is designed to encourage
ideal behavior when making decisions.
Objective 1.03 Understanding Ethics
2
 AICPA – American Institute of Certified Public
Accountants
 IMA – Institute of Management Accountants
 IIA – Institute of Internal Auditors
Objective 1.03 Understanding Ethics
3
 Integrity
 Objectivity
 Independence
 Competence
 Confidentiality
Objective 1.03 Understanding Ethics
4
 Accountants must choose between right and wrong.
 Accountants are responsible for entering correct
entries.
 Accountants are responsible for true and correct
financial statements.
 Integrity is necessary for accountants to build trust in
regards to their professional judgments.
Objective 1.03 Understanding Ethics
5
 Accountants must be:
 Impartial
 Honest
 Free of personal conflicts
 Accountants must not be influenced by personal
interests.
 Accountants should behave in a way that does not
suggest inappropriateness.
Objective 1.03 Understanding Ethics
6
 Accountants do not have an interest or profit
financially from the companies they audit.
 Accountants must have the public’s confidence in
their professional services.
Objective 1.03 Understanding Ethics
7
 Accountants should be knowledgeable in their
profession.
 Accountants must have the skills necessary to
perform their jobs.
 Accountants must have experience in their field.
 Accountants are expected to keep abreast of current
laws by continuing education classes.
Objective 1.03 Understanding Ethics
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 Accountants must not share private information
regarding their clients.
 Accountants are expected to protect personal and
private information regarding their clients.
 An accountant should not use information learned for
personal gain.
Objective 1.03 Understanding Ethics
9
Glencoe Accounting 1st Year Course, McGraw-Hill, 2007.
Objective 1.03 Understanding Ethics
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