Presentation is loading. Please wait.

Presentation is loading. Please wait.

The accounting profession requires its members to follow a code of ethics.

Published byLuke Terry Modified over 6 years ago

Similar presentations

Presentation on theme: "The accounting profession requires its members to follow a code of ethics."— Presentation transcript:

1

2 The accounting profession requires its members to follow a code of ethics.
Glencoe Accounting Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3 Explain the meaning of ethics
Describe the components of business ethics. Identify the role of the accountant in business ethics. Discuss how ethical behavior benefits individuals, businesses, and society. Explain the key principles an accountant is expected to follow. Identify the accounting organizations that establish codes of ethics for the profession. Describe the Sarbanes-Oxley Act. Glencoe Accounting Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4 Key Terms ethics business ethics code of ethics ethics officer
Section 29.1 The Nature of Ethics Key Terms ethics business ethics code of ethics ethics officer Glencoe Accounting

5 Business ethics are not very different from ethics in general.
Section 29.1 The Nature of Ethics Business ethics are not very different from ethics in general. ethics The study of our notions of right and wrong; a set of basic principles. business ethics The policies and practices that reflect a company’s core values such as honesty, trust, respect, and fairness. Glencoe Accounting

6 How are business ethics determined?
Section 29.1 The Nature of Ethics The Law Company Values How are business ethics determined? Training and Outreach Ethics Committees Enforcement Glencoe Accounting

7 Ethics What is a code of ethics? code of ethics
Section 29.1 The Nature of Ethics What is a code of ethics? code of ethics A formal policy of rules and guidelines that describes the standards of conduct that a company expects from all its employees. Glencoe Accounting

8 Distribution of a written code
Ethics Section 29.1 The Nature of Ethics Distribution of a written code Training and Outreach Formal training Glencoe Accounting

9 Evaluates Performance
Ethics Section 29.1 The Nature of Ethics Ethics Officer ethics officer The employee directly responsible for creating business conduct programs, evaluating performance, and enforcing standards of conduct. Creates Programs Evaluates Performance Enforces Standards Glencoe Accounting

10 Performance Appraisal Notes
Ethics Section 29.1 The Nature of Ethics Performance Appraisal Notes Termination Probation Enforcement Demotion Suspension Glencoe Accounting

11 Ethics The Accountant’s Role Avoid harm to stockholders.
Section 29.1 The Nature of Ethics The Accountant’s Role Avoid harm to stockholders. Optimize the interests of the public. Adhere to universal standards of what is right. Respect the human rights of all people. Glencoe Accounting

12 Ethical Behavior Individuals Businesses Society
Section 29.1 The Nature of Ethics Acting ethically can increase self-esteem, contentment, and self-respect. Individuals A DePaul University study found that companies that made commitments to an ethics code provided twice the value to shareholders than those that did not. Businesses Society is the sum of all social relationships between humans and is only as ethical as the individuals and business that make it up. Society Glencoe Accounting

13 Key Terms integrity objectivity independence competence
Ethics in the Accounting Profession Section 29.2 Key Terms integrity objectivity independence competence confidentiality Glencoe Accounting

14 Key Principles Key Principles integrity The principle that
Ethics in the Accounting Profession Section 29.2 Integrity integrity The principle that requires accountants to choose what is right and just over what is wrong. Confidentiality Key Principles Objectivity Competence Independence Glencoe Accounting

15 Key Principles Key Principles objectivity
Ethics in the Accounting Profession Section 29.2 Integrity objectivity The principle that requires accountants to be impartial, honest, and free of conflicts of interest. Confidentiality Key Principles Objectivity Competence Independence Glencoe Accounting

16 Key Principles Key Principles independence
Ethics in the Accounting Profession Section 29.2 Integrity independence The principle that requires accountants to have no financial interest in the company being audited. Confidentiality Key Principles Objectivity Competence Independence Glencoe Accounting

17 Key Principles Key Principles competence
Ethics in the Accounting Profession Section 29.2 Integrity competence The principle that requires accountants to have the knowledge, skills, and experience needed to complete a task. Confidentiality Key Principles Objectivity Competence Independence Glencoe Accounting

18 Key Principles Key Principles confidentiality
Ethics in the Accounting Profession Section 29.2 confidentiality The principle that requires accountants to protect and not disclose information acquired in the course of work unless they have the appropriate legal or professional responsibility to do so. Integrity Confidentiality Key Principles Objectivity Competence Independence Glencoe Accounting

19 Codes of Ethics American Institute of Certified Public Accountants
Ethics in the Accounting Profession Section 29.2 American Institute of Certified Public Accountants Institute of Management Accountants Institute of Internal Auditors Glencoe Accounting

20 Sarbanes-Oxley Act (SOX)
Ethics in the Accounting Profession Section 29.2 Sarbanes-Oxley Act (SOX) Effective 2002, SOX protects investors after several corporate scandals failed to be identified and prevented by auditors. SOX requires CEOs, financial officers, accountants, and auditing firms to comply with new regulations and procedures. SOX established an accounting board to oversee and investigate the audits and auditors of public companies. Glencoe Accounting

21 Question 1 What are five items that could be included in a business’s code of ethics? Answers can include: Conflicts of interest Product quality and testing Customer relations Employee relations Suppliers and consultants Expense reports Security Political contributions Environmental actions International business Workplace safety Technology Whistle-blowing Glencoe Accounting

22 What is the foundation for ethics in accounting?
Question 2 What is the foundation for ethics in accounting? Certain principles provide the framework for rules of conduct that an accountant is expected to follow. The principles include integrity, objectivity, independence, competence, and confidentiality. Glencoe Accounting

23 End of

Download ppt "The accounting profession requires its members to follow a code of ethics."

Similar presentations

ASX Corporate Governance Council

ASX Corporate Governance Council
Core principles in the ASX CGC document. Which one do you think is the most important and least important? Presented by Casey Chan Ethics Governance &

Core principles in the ASX CGC document. Which one do you think is the most important and least important? Presented by Casey Chan Ethics Governance &
Ethical, Social and Environmental Responsibilities Unit 3 June 20131Dr Vidya Kumar.

Ethical, Social and Environmental Responsibilities Unit 3 June 20131Dr Vidya Kumar.
PROJECT MANAGEMENT ETHICS

PROJECT MANAGEMENT ETHICS
Copyright © 2010 South-Western/Cengage Learning

Copyright © 2010 South-Western/Cengage Learning
Chapter 29 Ethics in Accounting

Chapter 29 Ethics in Accounting
WELCOME Annual Meeting & Compliance Seminar. Code of Conduct - Impact on Corporate Culture by Andy Greenstein Knight Capital Group, Inc.

WELCOME Annual Meeting & Compliance Seminar. Code of Conduct - Impact on Corporate Culture by Andy Greenstein Knight Capital Group, Inc.
Professional Ethics. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 3-2 Steps in Resolving an Ethical Dilemma Identify.

Professional Ethics. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 3-2 Steps in Resolving an Ethical Dilemma Identify.
Professional Ethics “Ethics are statements of moral principles and values that guide the action of auditors”. The independence, powers and responsibilities.

Professional Ethics “Ethics are statements of moral principles and values that guide the action of auditors”. The independence, powers and responsibilities.
© 2013 Cengage Learning. All Rights Reserved. 1 Part Four: Implementing Business Ethics in a Global Economy Chapter 8: Developing an Effective Ethics Program.

© 2013 Cengage Learning. All Rights Reserved. 1 Part Four: Implementing Business Ethics in a Global Economy Chapter 8: Developing an Effective Ethics Program.
Copyright © Houghton Mifflin Company4-1 O.C. Ferrell University of New Mexico John Fraedrich University of Wyoming Linda Ferrell University of New Mexico.

Copyright © Houghton Mifflin Company4-1 O.C. Ferrell University of New Mexico John Fraedrich University of Wyoming Linda Ferrell University of New Mexico.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 4 - 1 Professional Ethics Chapter 4.

©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley Professional Ethics Chapter 4.
Business, Accounting and Personal Ethics. Sources Used Trevino, Linda, Gary Weaver, David Gibson, and Barbara Ley Toffler, “Managing Ethics and Legal.

Business, Accounting and Personal Ethics. Sources Used Trevino, Linda, Gary Weaver, David Gibson, and Barbara Ley Toffler, “Managing Ethics and Legal.
B. OVERVIEW OF SMALL BUSINESS 2.00 Explain the basic concepts leading to success in small business entrepreneurship. 2.03 Discuss the importance of ethical.

B. OVERVIEW OF SMALL BUSINESS 2.00 Explain the basic concepts leading to success in small business entrepreneurship Discuss the importance of ethical.
 Corporate governance is based on three interrelated components: corporate governance principles, functions and mechanisms.

 Corporate governance is based on three interrelated components: corporate governance principles, functions and mechanisms.
Business Ethics and Social Responsibility

Business Ethics and Social Responsibility
Basic Principles: Ethics and Business

Basic Principles: Ethics and Business
Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Chapter Twelve Corporate Governance Canadian Business and Society: Ethics & Responsibilities.

Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Chapter Twelve Corporate Governance Canadian Business and Society: Ethics & Responsibilities.
5-1 Ethics 5 5. 5-2 1. To examine the role of ethical behavior in business finance. 2. To illustrate the role of unethical behavior in the downfall of.

5-1 Ethics To examine the role of ethical behavior in business finance. 2. To illustrate the role of unethical behavior in the downfall of.
Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The accounting profession requires its members to follow a.

Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The accounting profession requires its members to follow a.

Similar presentations

Ads by Google