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

2. Ethics is the study of right and wrong 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. 2 Objective 1.03 Understanding Ethics

3. AICPA – American Institute of Certified Public Accountants IMA – Institute of Management Accountants IIA – Institute of Internal Auditors 3 Objective 1.03 Understanding Ethics

4. Is the action legal? Does the action violate company code of conduct or professional standards? Who is affected by this decision & how? 4 Objective 1.03 Understanding Ethics

5. Integrity Objectivity Independence Competence Confidentiality 5 Objective 1.03 Understanding Ethics

6. Accountants must choose between right and wrong. Accountants are responsible for entering correct entries.(Accuracy) Accountants are responsible for true and correct financial statements. (Accuracy) Integrity is necessary for accountants to build trust in regards to their professional judgments. 6 Objective 1.03 Understanding Ethics

7. Accountants must be: Impartial Honest Free of personal conflicts – “not wanting someone else to get in trouble” Accountants must not be influenced by personal interests. Accountants should behave in a way that does not suggest inappropriateness. 7 Objective 1.03 Understanding Ethics

8. Accountants do not have an interest or profit financially from the companies they audit. (They can’t suggest a client do something, “invest in” a venture that will benefit the accountant in the long run) Accountants must have the public’s confidence in their professional services. 8 Objective 1.03 Understanding Ethics

9. 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 Objective 1.03 Understanding Ethics

10. 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 Objective 1.03 Understanding Ethics

11. Glencoe Accounting 1 st Year Course, McGraw-Hill, 2007. 11 Objective 1.03 Understanding Ethics