Ethics in Accounting Essay Example | Topics and Well Written Essays - 1000 words - 1

Ethics in Accounting - Essay Example AICPA principles of professional conduct AICPA principles are the guidelines that guide the conduct of members in the accounting profession. 1.Accounting professionals are expected to exercise moral judgment and professionalism in the conduct of activities. 2.Professional accountants are expected to act in a manner that ensures public interest. Accountants must be committed to professionalism and earn public honor. 3.Accountants are expected to uphold high levels of integrity to earn public interest. 4.Accountants must be show objectivity and independence when discharging responsibilities. 5.Accounting professionals must continuously enhance their competencies to improve service delivery. 6.Members are expected to adhere to professional codes of conduct when determining nature and the scope of services provided. Definition and characteristics of U.S. GAAP U.S GAAP denotes internationally recognized frameworks that guide financial accountants. The principles ensure ethics in the field of accounting. The characteristics include: 1.Financial information must be relevant in that it ought to contain information about the business. 2.Information must be reliable in such a way comparative analysis can be made. The information must also be verifiable (Duska R, Duska S, and Ragatz 33). 3.Comparability ensures that differences and similarities between events can be easily made. That is, Past and currents statements can be analyzed. 4.Financial statements must also be consistent in that they are easily understandable by the users of the statements and the preparer.

Ethics Essay Example | Topics and Well Written Essays - 750 words - 14

Ethics - Essay Example Similarly theory of circular logic postulates that the conclusion is almost identical to its hypothesis. A. Psychological egoism explains that the determining motive of every voluntary action is a desire for ones own welfare. The fallacy exists in this theory because this theory believes that others conceal their motive just for gaining self benefit which is not at all true in several contexts. Another fallacy lies in hasty generalization. For example, several people conduct their duty when their self-interest lies elsewhere and help someone in need without thinking of self-gain. Some people will follow religious precepts without personal benefit. Some people will even act against their self-interest so that they can follow their conscience. They do whats right even though they wont personally benefit. The concept of ethical egoism being consistent and complete are strong points. This holds good in several contexts. Universal ethical egoism, individual ethical egoism, and rule based ethical egoism can be considered as strong versions as they explain the logical basis for personal actions. Weak version of ethical egoism: However the concept of ethical egoism  is incomplete in several contexts which is its weak point. In those occasions ethical egoism is  mistaken in truth or inconsistent or incomplete. Ethical egoism is contradictory because it evaluates the same act as both right and wrong i.e. the concept is mistaken in truth; it is inconsistent. Ethical egoism is defined as an inherent desire to perform altruistic acts where as psychological egoism is defined as an inherent selfishness of all acts. Ethical egoism differs from psychological egoism mostly on account of the various ways of viewing altruism (EN 1 and EN 2). Ethical egoism prioritizes on what ought to be, rather than what is where as psychological egoism gives more importance to â€Å"what is†. Several theories of motivation were postulated and they