Regulatory and Ethical Landscape of the Accounting Function

Regulatory requirement within accounting function

Accouting law and regulation: 

- The government responsible with the accouting regulation to handle its effectiveness in public interest objetives. 

- The regulation would depends on the specific needs of that accoutants and businesses requirement. It directed the professional accoutants follow the ethics and professional standards which could protect investors and creditors who rely on their financial statements. 

(IFAC, 2011)

Accouting standards: Financial reporting adheres to a strict set of guidelines called accounting standards. These standards form the foundation of Generally Accepted Accounting Principles (GAAP), ensuring transparency and accuracy in financial records.

Ethics within accounting function

Ethics in accounting could be known as principles, beliefs. According to the Fundamental Principles following the Accouting Professional and Ethical Standards Broad (APESB), the accountant needed to:

- Achieve integrity atittude that always be honest 

- Being fair and unbiased reporting, accountants must be free from conflicts, undue influence, and personal biases

- Ensure the quality of professional services, adherence to technical and professional standards is paramount, along with continual efforts to maintain strong knowledge and skills

- Require meticulous data protection and prohibit unauthorized disclosure or personal gain.

- Uphold the profession's reputationthat reflects its integrity and avoids any actions that could bring disrepute.

                                                                                 (source: Aurora Tranning)

(Clarke, Wilson, Wilson, 2019)

References

Clarke, E. A., Wilson, Y., Wilson, M. (2019) 'Chapter 1: Accounting its foundations' in Accounting9e An Introduction to Principles & Practice. 9th Ed. Australia, Cengage Learning Australia Pty Limited. (Accessed: 15th March 2024)

IFAC (2011) REGULATION OF THE ACCOUTANCY PROFESSION Available at: https://www.ifac.org/_flysystem/azure-private/publications/files/PPP1-Regulation-of-the Accountancy-Profession.pdf (Accessed: 15th March 2024).

Aurona Tranning (2023) The Importance of Ethics in Accounting: Why It Matters Available at: https://auroratrainingadvantage.com/articles/ethics-in-accounting/

Comments

Post a Comment

Popular posts from this blog

Navigating Complexity: Core Accounting Branches, Skillsets, and the Evolving Scope of Financial Reporting

Image
 What is Accounting? - the act of analyzing financial data of the business form the business activities  - the act of record-keeping the financial statement and the annual transaction  - the act of transfering the financial information to the users through accounting reports  (Crawford, 2023) Accounting had a improtant role contributing the users make decisions through their giving financial informations. Therefore, it was also known as a term of business.    (Price, 1998) What is Accountant? Accountant plays a role of measuring the financial statements, situation and handing the taxes (Crawford, 2023) Who uses Accounting data?  There are two main types of users: - Internal users: these group will be the person in the company called the mangement (owners, employees, managers,.. etc) - External users: these group will not be the person in the company but still had the right to recieve the information from the organization (creditors, investors,.. etc) (...
Read more

The context and purpose of the accounting function in meeting organisational, stakeholder and societal needs and expectations.

The needs of accounting information in different skateholders The financial information would influence to the making-decision of each entity. The financial-accouting information related to the economic activities  (Popescu, 2020).  Organizational Needs Accounting information helps organizations track financial transactions, manage resources efficiently, and make informed decisions based on financial data. It provides crucial information for budgeting, forecasting, and performance evaluation.  Strength : the accounting information enables the organization balancing their cash flow as well as the  performance evaluation. Besides it monitor in ensure compliance with the organization regulations. Limitation : the financial trends will based on the historical so it may be complex to predict future financial trends.  Stakeholder Needs  Accounting ensures transparency and accountability to stakeholders by providing accurate financial reports. Investors, creditors...
Read more