Defining ethics within accounting

- Accountants are held to a public trust. This is about the public believing that a profession and the professional will act in a particular way to ethically serve and protect the public's interest. For accountants, this alone clearly defines why professional ethics is so vital for accounting. This implicit trust gives accountants a lot of power and control, which can lead to abuse and questionable acts, like manipulating financial information to make results look better than they actually are. So how do accountants uphold this public trust? By embracing five core principles within a code of conduct governed by accounting bodies and the International Ethics Standards Board for Accountants. The first is integrity. Now, in my opinion, this is less a rule and more of a state of mind. Most people recognize integrity as being honest, direct and showing commitment. Or as I like to say, it's about acting professionally. The second principle is objectivity. This one is slightly more challenging. It simply means that an employer or client's interests shouldn't influence your position, or for that matter benefit anyone with something to gain from a decision. Objective accountants always remove personal biases and external influence that may sway the outcome of a financial or business decision. Third is professional competence and due care. Accounting evolves and redefines itself as rules, legislation, and best practices change over time. Accountants are expected to remain current with these changes, provide up-to-date information and deliver the highest quality service possible. Fourth is confidentiality. Accountants have access to sensitive financial information. They're expected to never disclose any of this information to anyone who may benefit from it, nor should they use it for personal gain, like selling or buying stock with the information they possess. The last principle is professional behavior. An accountant must always perform to the highest personal and professional standards possible, like completing tasks thoroughly and on time, following through on commitments and only accepting payments once services are complete. As you can see, ethics in accounting isn't about keeping accountants from being corrupt or manipulative. That's the exception. Every accountant is held to a high ethical standard, and this is called the public trust. So then next time an error is made, don't jump to conclusions. Accountants are only human, like the rest of us.