Corporate ethics in accounting ,auditing &financ

1. AUDITING
ETHICS &
ACCOUNTING &
CORPORATE GOVERNANCE AND BUSINESS ETHICS

2. Team Members
Gouthama Bhat (head)
Harishkumar SP
Harshitha CK
Harshitha KS
Haseeba begum
Jamuna AM
Jayaprasad KM
Kavana SN
Kavyashree U
Keerthana G

3. CONTENTS
Meaning of ethics
Definition
Ethics in accounting
Need of ethics in accounting
Goal of ethics in accounting
Ethical responsibilities of accountants
Unethical practices in accounting
Merits of accounting
Demerits of accounting
Ethics in auditing
Code of ethics for auditors
Merits of auditing
Disadvantages
Conclusion

4. Meaning of Ethics
Ethics means a set of principles and standards of moral
behavior that are accepted by society as right against wrong
Definition
It ca be defined as right conduct and system of moral
values
According to Philip Wheel Wright “Ethics is the
branch of philosophy which is the systematic
study of selective choice of the standards of right
and wrong by which it may ultimately be
directed

5. Ethics in accounting
Accounting ethics are the moral values, principles,
codes which guides the accounting professionals
and business organization to be accountable to
various stakeholders ie interested parties such as
creditors, debtors, bank and financial Institutions,
tax authorities etc
Accounting ethics is a field of accounting which
to the various guidelines that a accounting
professionals need to follow while practicing
accounting.

6. NEED FOR ETHICS IN ACCOUNTING
A business unit has got number of stake holders, these stakeholders will
analyse the performance of stability of the business organization in differenct
angles they have got their own set of criteria to analyze. As a result it creates a
moral binding on the part of accountants to be ethical while carrying out their
accounting work
GOALS OF ETHICS IN ACCOUNTING
Relating accounting education to the moral
issues
Recognizing the issues in accounting that have ethical
implications
Developing the activities need to deal with ethical
conflicts
Developing a sense of moral obligation or
responsibilities
Learn to deal with uncertainities of accounting
profession

7. Ethical responsibilities of accountants
They should male inquiries of management and others within the entity
They should consider the results of the analytical procedures performed in planning
the audit
They should try to identify the risks
After evaluating they should assess the identified risks
They should carry out the fraud risk assessment approach promptly with almost
care
They should be honest and should always depict the accurate picture on the
finanmcial statement

8. Unethical practices in
accountingShowing inflated salaries in the books of accounts by obtaining the receipts from the employees
Making adjustments with vendors to obtain higher value bills for the purpose of showing inflated
or higher payment
Paying overtime wages when none need to be paid.
Maintaining the two different set of books one for the management and other for the income tax
MERITS OF ACCOUNTING
Better professional environment
Increased reputation
Standards for employee discipline
Decreased legal liability
DEMERITS
Fraud
False information
Tax evasion

9. Integrity
Integrity can be measured in terms of what is right and just. Integrity requires auditors to observe both
the form and the spirit of auditing and ethical standards.
Independence, objectivity and impartiality
Auditors should strive not only to be independent of audited entities and other interested groups, but als
to be objective in dealing with the issues and topics under review.
Ethics in auditing
Ethics in auditing is a personal compass that will often define the
boundary of right and wrong and how does it have a place in
auditing.
Code of ethics for auditors
A code of ethics is a comprehensive statement of values and
principles which should guide the daily work of auditors

10. Political neutrality
It is important where auditors undertake, or consider undertaking political activities they bear in the
impact which such involvement might have on their ability to discharge their professional duties
impartially. If auditors are permitted to participate in political activities they have to be aware that
these activities may lead to professional conflicts.
Conflicts of interest
Auditors should protect their independence and avoid any possible conflict or interest by refusing gifts
or gratuities which could influence or. Be perceived as influence their independence and integrity.
Professional
secrecyAuditors should not disclose information obtained in the auditing process to third parties, either orally o
in writing.
Competence
Auditors must not undertake work they are not competent to perform, auditors should know and follow
applicable auditing, accounting, and financial management standards, policies, procedure and practices.
Professional development
Auditors should exercise due professional care in conducting and supervising the audit and in
preparing related reports. They have a continuous obligation to update and improve the skills
required for the discharge of their professional responsibilities.

11. MERITS OF AUDITING
It helps up the reputation of the business
Ability to misconduct before it becomes a major problem
Highlights trends
Identify potential risks and liabilities and improve legal compliance
DISADVANTAGES
Frauds by management
Wrong certificate
Misleading clarification
No true picture
High cost

12. CONCLUSION
Good ethics promotes good business.
The legislative history reflects the fact that most law before law as proposed they are based on
morality that is over time has became law of morality this suggests that should have established
ethics.
Its aim about establishing ethical environment in world wide with the support of multiple studies
ethical education and employs responsibility can reinstate ethical behavior in the accounting and
auditing.
Ethics in accounting and auditing are very important to make sure that accountants and auditors
don’t break any laws.
Ethics are the foundation of success.

13. THANK YOU