1. Accounting I Objective 1.03 Understanding Ethics Needed
For Employment In Accounting

2. What is meant by Ethics?
Ethics is the study of right and wrong and and how people choose what is morally good and bad.
Business ethics refers to how a company uses a code of conduct, which is designed to encourage ideal behavior when making decisions.

3. Organizations That Provide Guidelines for Making Ethical Decisions
AICPA – American Institute of Certified Public Accountants
IMA – Institute of Management Accountants
IIA – Institute of Internal Auditors

4. Key Principles Integrity Objectivity Independence Competence
Confidentiality

5. Integrity Accountants must choose between right and wrong.
Accountants are responsible for entering correct entries.
Accountants are responsible for true and correct financial statements.
Integrity is necessary for accountants to build trust in regards to their professional judgments.

6. Objectivity Accountants must be: Impartial Honest
Free of personal conflicts
Accountants must not be influenced by personal interests.
Accountants should behave in a way that does not suggest inappropriateness.

7. Independence
Accountants do not have an interest or profit financially from the companies they audit.
Accountants must have the public’s confidence in their professional services.

8. Competence Accountants should be knowledgeable in their profession.
Accountants must have the skills necessary to perform their jobs.
Accountants must have experience in their field.
Accountants are expected to keep abreast of current laws by continuing education classes.

9. Confidentiality
Accountants must not share private information regarding their clients.
Accountants are expected to protect personal and private information regarding their clients.
An accountant should not use information learned for personal gain.

10. Resources
Glencoe Accounting 1st Year Course, McGraw-Hill, 2007.