Question

Importance of ethics in Accounting?

Please give answer in bullet points.

Answer 1

Ethics are important in Accounting to maintain integrity, trust and confidentiality when dealing with clients. Ethics plays a major role to maintain good profits in long run.

Importance of ethics in accounting :

1. Accounting deals with financial statements which are produced before stakeholders so maintaining ethics enable us to make those statements free of bias.

2. To maintain integrity, a professional accountant should be straightforward and honest in all proffessional and business relationships.

3.To maintain objectivity, should not allow bias and conflict of interest to override proffessional judgements.

4. To maintain confidentiality, not to disclose client information to third parties without proper or specific authority unless there is legal or proffessional right or duty to disclose.

5. Maintain proffessional behavior by complying with relevant laws and regulations, avoids actions that brings disrepute to proffession.

6. To gain more customers as now a days everyone are following ethical practices customers show interest towards company or business which follow ethics.