Business and Accounting Ethics by Dr. K. T. Smith and Dr. L. Murphy Smith
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Ethics Article Review
The article “Business and Accounting Ethics” by Dr. K. T. Smith and Dr. L. Murphy Smith state ethics and decision-making in accounting, must maintain and enforce a code of professional conduct for public and private accountants. The result of open market, in accounting is important to observe from three perspectives: the client, the profession, and society. Two key areas that are affected by market are competition, and ethical implications.
Ethics in accounting means it should be acted upon as being responsibly, professional, and have moral judgments in accounting activities. Corporations not only operate within the system of ethics and moral principles of applicable group of people, they also draw power from framing the patterns of thought and action of their constituents. This power is deployed as guiding values, decision premises, or preferred forms of conduct or behavior.
The article can be clarified by the make-up of corporations and in a way in which this can be created. Accounting affects all types of people, from businesses small and large, investors, creditors, and personal accounts.
Accountants are faced with a puzzling set of securities and amazing set of accounting rules. There are more obligations and responsibilities for the accountant role and judgments involved to make a moral decision about what is wrong and right, good or bad, the reality of ethical standards that affect our well-being and the company we work for.
To protect companies, Sarbanes-Oxley Act was created on July 30th, 2002, due to the findings of WorldCom and Enron, due to their companys discrepancies during an audit, which caused chaos in accounting companies along with people losing their jobs and futures. Every day there are new laws and regulations for even small companies who are public, who need to be abide to the laws.
Ethics in accounting affect and relates to all positions in a business, these ethics guide us to make the right choices. The power of a decision-making can be based on a persons morals, beliefs, life, culture, and ideas. People around us influence our own process of decision-making in everyday living in the organizations where we work.
To run successful businesses, owners and managers must be required to understand financial reports to make business decisions. Accounting has several parts that are required to meet the