Importance of Ethics for Accounting Professional: Forensic Accountants

Posted: August 27th, 2021

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Importance of Ethics for Accounting Professional: Forensic Accountants

The American Institute of Certified Public Accountants’ (AICPA) introduction was done to ensure only ethical and competent individuals practiced this professional.Similarly, to enhance the AICPA code of professional conduct, theinstitute’s ethics of standards were transitioned by the AICPA’s Professional Ethics Executive Committee. The aim of transitioning the standards was for members to easily apply rulesand make good decisions.Currently, in the world of the corporate industry, the profession of accounting is very complicated. Every day, auditors are encountering challenges putting their ethical decision in a test. Undeniably, due to poor ethics, numerous negative impacts can occur in accounting practices. Therefore, the accounting professional requires accountants to be ethical in their practices.

Furthermore, they are different accounting types, including forensic accounting, software conversion accounting, and financial accounting. Focusing on forensic accounting, forensic accountants seek to find issues in money laundering, fraud, and other illegal activities. Similarly, a forensic accountant is responsible for adhering to a certain ethical standard, such as integrity, objectivity, and competence set aside by the Professional Ethics Executive Committee. At all times, they should follow the highest ethical standards. For instance, forensic accountants must investigate the misappropriation of funds issues within the company. Once they get their findings, they should give the stakeholders and regulators unbiased expert opinion, thus, demonstrating integrity. This is crucial because it avoids causing negative impacts on the company and boosts investors’ confidence.Likewise, they should restrict themselves from using the provided confidential information oravoid seeking personal gains. Additionally, upholding objectivity and independence helps the forensics accountant offer an honest opinion concerning the company’s financial information. Hence, forensics accountants should practice objectivity and integrity while in their line of duty.

To sum up, public image is essential in the accounting profession since it shows value and professionalism. Additionally, it helps to control public perception concerning accounting. By adhering to the accounting profession’s stipulated ethics, forensic accountants can avoid illegal and unethical acts causing conflicts of interest in the profession. Thus, this helps build confidence in their accounting systems.