2. An Ethical Analysis for Development of Professional Accountants and Financial Executives in an Organizational Effectiveness

An accountant performs duties according to Generally Accepted Accounting Principles (GAAP). These principles have established standards for accounting that prevent ethical concerns if followed. The ethics of disclosure are important because under certain circumstances this information can be optional according to GAAP. What a business wishes to disclose and what an accountant thinks should be disclosed can lead to an ethical battle. Proper disclosures will avoid ethical dilemmas by being complete enough to maintain the public's trust at all times. The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. They rely on the opinion of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company. Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor's reporting. Most countries have differing focuses on enforcing accounting laws. In Germany, accounting legislation is governed by "tax law"; in Sweden, by "accounting law"; and in the United Kingdom, by the "company law". In addition, countries have their own organizations which regulate accounting. For example, Sweden has the Bokföringsnämden (BFN - Accounting Standards Board), Spain the Instituto de Comtabilidad y Auditoria de Cuentas (ICAC), and the United States the Financial Accounting Standards Board (FASB).

Authors Name: 
Prof. Dr. Anbalagan Chinniah