Ethic in Accounting

Accounting is a language that people within a firm can use to discuss its projects and progress with one another, and that they can use to tell outsiders what’s happening in the firm without giving too many of its secrets to competitors. Natural language develops grammar and vocabulary without the intervention of standards setting bodies. Artificial languages like computer programming languages and the language of accounting seem to benefit from official standard. Standards can be effective even when they are not mandatory: People usually follow a standard because it reduces the cost communicating numbers are so special that we want the government to require firms to stick to the standards, or perhaps we can rely on shareholders and creditors to insist on particular standards to improve communication. In the history of the world, there has never been a country like the United States of America, more freedom, more wealth, and more opportunity. The accounting profession has played its part in America’s success story.   In his speech to the Yale Club in New York City on September 4, 2002, AICPA President Barry Melanchon stated the accounting profession must restore its most priceless asset: its reputation. He said that profession’s leadership must act to preserve a legacy of honor and integrity for future generations of CPAs. The profession must build upon its traditional values such as rigorous commitment to integrity.
“To maintain and broaden confidence, members should perform all professional responsibilities with the highest sense of integrity… Integrity is an element of character fundamental to professional recognition. It is the quality from which public trust derives and the benchmark against which a member must ultimately test all decisions.” (Article III in the principles of the AICPA Code of Professional Conduct) The accounting professional must be skilled at implementing moral judgments so that he or she can consider the welfare of those affected by his or... [continues]

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