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Kermsis G. F. And Kermis M. D.

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Kermsis G. F. And Kermis M. D.
It is important for the corporation to provide and present noble quality financial statements to those shareholders, customers, business associates, competitors, and public organizations who receive and use their reports. Corporations represent themselves through their financial reports. The corporation must illustrate a trustworthy image and convey that they are truthful and responsible to their objectives and actions. Likewise, they must develop a positive reputation to their users. This point out that the role of ethics is significant in maintaining the integrity of the business. According to Kouzes and Posner, companies that is directed by these values enable to outclass other businesses in terms of income growth, employment, stock price …show more content…
Kermis G.F. and Kermis M.D. stresses that “Accountants’ failure to reflect ethically on the dilemmas they encounter in their work may lead them to make wrong decisions” (Senaratne, 2013). For this reason, ethics guides accountants and other makers of the corporation’s financial reports to include findings and data based on relevant sources. Top managers directed by ethical values develop effective leadership skills as well (Duggar, 2011). In this case, employees respect, trust and believe in them. Thus, it will lead to accountable financial statements that the corporation can use to make better decisions for the sake of the business in the distant future. These financial statements can be beneficial to other professional and to some practicing accountants as well. Ethics makes harmonious relationship among the members in the company and creates a highly valued workplace. In fact, according to an article made by Prof. Sundem which was adapted from his speech on 2003, causes of financial reporting problems can be prevented by stressing ethics in businesses. Ethics serves as a standard for all professionals and employees in the company to act decorously and to uphold honest and moral performance. Company members that have an ethical behavior and integrity build trusting relationships with their workmates. Through these values, accurate and reliable financial reports are produced by accountants, auditors, and other business financial
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