"Accountants and the accountancy profession exist as a means of public service; the distinction which separates a profession from a mere means of livelihood is that the profession is accountable to standards of the public interest, and beyond the compensation paid by clients.'' —Robert H. Montgomery, describing ethics in accounting  Accounting ethics is essentially part of applied ethics. Accountancy is based on the study of moral value and judgements, which is an sample of occupational ethic. Luca Pacioli, who is the first person, were introduced accounting ethics,which is expended by government groups, professional organization and also independent companies. Higher education institutions teach ethic in accounting courses It is also taught accountants and auditors training by company. Accounting profession consider about ethical standards by reason of recent corporate collapses and varied range of accounting services. Ignoring reputation of the accounting professions caused these collapses. Governments and several accounting organizations have developed regulations and solutions for improved ethics in the accounting professions in order to resist criticism and dishonest accounting. Importance of ethics
Accounting and auditors must have high level of ethics in their work. Companies yearly financial statements are of high importance to shareholders and prospective shareholders and other financial statement users. This helps them make informed decisions on financial investment. Accountants opinions and auditors verification should present a true and fair view of the company that is important for the shareholders and prospective shareholders and other financial statement users.Ethical dilemmas can be overcome with knowledge of ethics by accountants and auditors. It will benefit the public,who trust on the accountants and auditor’s reporting, to make right choice, however it may not benefit the company. Countries often have their own accounting laws. For example, Germany uses tax law, Sweden; accounting law, UK; company law countries can have organizations that regulate accounting. For instance, Sweden;BFN(Accounting Standards Board), Spain; ICAC (Instituto de Comtabilidad y Auditoria de Cuentas) and the United States the FASB (Financial Accounting Standards Board). History
Luca Pacalio is called the “father of accounting”. His first book, which is Summa de arithmetica, geometria, proportioni, et proportionalita, was about accounting ethic, published in 1948. Since 1948, ethical standards has been developed by governments groups ,professional organization and companies. Accountant is led by these various group with several ethics's code in order to achieve their responsibilities in a professional work environment. Ethics code that formulated by professional body is must followed by accountants. In United States, accounting societies such as Association of Government Accountants, Institute of International Auditors and the National Association of Accountants have ethic codes. Most accountants are getting memberships for at least one of these societies. In The USA accounting businesses, were the first important step in 1987. In addition, The American Association of Public Accountants (AAPA) was established that same year, and, by 1905, they set up AAPA's ethical rules to teach its members. In October 1907, during its twentieth anniversary, for all of their members, ethic was the core subject of the meeting. End of the meeting, they came out with a list of ethics rules that is included to the organization's bylaws. Due to fact that the organization memberships was voluntary, they could not ask to conform to the recommended attitudes. A number of other establishments, like the Illinois Institute of Accountants, continuously claimed the significance of ethics for accounting.  They've renamed AAPA a number of times since its establishment. (Today, it's simply known...
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