This document discusses Islamic ethics in accounting. It outlines the Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI) code of ethics for accountants, which is based on Islamic principles of integrity, honesty, piety, righteousness and accountability to Allah. The code establishes six ethical principles and accompanying rules of conduct for accountants. It also discusses the importance of incorporating Islamic ethics into accounting education to strengthen accountants' ethical awareness and resolve ethical conflicts according to Sharia law.
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OFISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficiencies
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficiencies
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OFISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficiencies
ISLAMIC ACCOUNTING PRACTICES - THE IMPORTANCE OF ISLAMIC CAPITAL MARKET IN MA...Nur Adillah Arifah Nazri
Capital markets are an important component of the financial system for raising funds for long-term investment. They provide opportunities for diversification of risk through cross-sectional risk sharing. The long-term investments are facilitated through a series of short-term contracts in the form of tradable securities enabling the investors an opportunity to exit or enter through trade. Thus they provide an element of liquidity to the otherwise illiquid assets. The secondary market also provides pricing and valuation of assets on a continued basis thus eliminating arbitrage and inefficiencies
EFFECTS OF ETHICS ON FRAUD 1
EFFECTS OF ETHICS ON FRAUD 2
Ethical Analysis
Effects of ethical behaviors in an economy are far reaching to individuals, firms and the economy at large. Accountants play a vital role in ensuring the reliability and trustworthiness of accounting data and affect the moral culture of business and society. In order to achieve this, accountants are advised to observe the American Institute of Certified Public Accountants (AICPA), Professional Code of Conduct. Undoubtedly, private and public organizations employ professional accountants who are mandated to provide financial information regarding its business cycles. In some situations, an accountant may feel compelled or pressured to provide false financial information or alter financial results. In these cases, this creates a threat to the moral and ethical character of an accountant and is known as an ethical dilemma. Ethical dilemmas constitute a circumstance in which an individual faces a situation or a decision that test his/her moral system or ethical code. In these circumstances, an individual must choose whether to live out consistent moral attitudes or act contrary to what one personally believes or what has been established by ethical code. Ethical accounting codes require accountants to have a high level of integrity, to maintain confidentiality and behave according to a high degree of professional standards.
This dissertation will discuss how ethical accounting standards impact accounting fraud. Accounting fraud involves the intentional manipulation of financial information, which misleads shareholders, creditors, investors and the general public. These actions are premeditated attempts to deceive and attract investors by intentionally altering financial statements. Often, this is accomplished by overstating revenue and assets and under reporting expenses and liabilities. The perpetrators of accounting fraud are employees, managers, accountants and top executives. Thus, to reduce business fraud, ethical codes have been instituted within corporations, industries and state and national accounting boards. For certified public accountants, the AICPA Code of Professional Conduct has been adopted to tackle the ethics of accounting.
Professional Conduct Diminishes Fraud
An accountant’s professional conduct is a key quality used to minimize fraud. As mentioned, state accountancy boards and the AICPA are mandated to formulate and enforce professional standards for all accounting members who are responsible for providing financial services. The AICPA Code of Professional Conduct was recodified in June 2014, and became fully effective in December 2015. This code of conduct requires all accountants to act with integrity, due care, objectivity, competency and ensure confidentiality for their client. In ad.
Ethics in AccountingKeys to Reducing FraudAbstra.docxhumphrieskalyn
Ethics in Accounting
Keys to Reducing Fraud
Abstract: The major problem facing accounting today is the ethical and moral decline of accounting professionals. The American Institute of Certified Public Accountants (AICPA) has published ethical rules to guide accounts and protect the trustworthiness of their decisions in the event an ethical dilemma arises. However today, the profession remains challenged with the need to invest in the growth and development of ethical and moral reasoning of accounting professionals to protect them from veering from ethical standards. This paper will explore ethical concepts such as professional conduct and integrity and how emphasis on these ethical values will affect fraud.
Table of Contents
I. Executive Summary 1
II. Introduction 1
III. Review of Literature 1
IV. Analysis 1
V. Recommendations 1
VI. Summary and Conclusions 1
VII. Appendix x 1
VIII. References 1
ACCT 601 – Accounting Capstone
Ethics in accounting
Page 0 of 3I. Executive Summary
Due week 7II. Introduction
Problem statement and how the topic fits with the course, the degree, and your focus area.
Include a reason for the audience to read the paper. Include an overview of what you are going to cover in your paper and the importance of the material.
Preview the main ideas and the order in which they will be covered.
Establish a tone of the document.
Accounting is the process by which financial transactions are monitored, tracked and examined. It aims to provide a means of determining the expenditure levels of an institution and it provides a means of maintaining transparency and honesty in the recording of business transactions. While most accounting is completed using technology, software is easily manipulated by people. Thus, individuals are the least reliable part of the process, as they are susceptible to influence from outside sources and defiant personal decisions. Therefore, the major problem facing accounting is the ethics and morals of the individual accountants. This paper will determine the importance of specific aspects, such as autonomy, confidentiality, professional conduct and integrity and establish the overall ethical characteristic necessary to ensure proper accounting and inhibit fraud.
Autonomy
According to Kant's moral philosophy, autonomy is the capacity of an individual to act based on objective morality rather than personal desires or other influences. In accounting, managers make decisions on their own without the input or approval of higher authorities. In some cases, this self-rule or individuality may affect decisions made due to pressures of the moment rather than the right decisions for the company. In other words, singular decisions made with the aim of bias in the outcome in favour of either a party involved in the process or the decision maker rather than for the greater good is in itself corrupt. Therefore, to ensure decisions are made with the best intentions of the organization, rather than othe.
Impact of Accounting Ethics on the Practice of Accounting Profession In Nigeria.IOSR Journals
This study is an empirical investigation of the impact of ethical values on the practice of accounting
profession in Nigeria. To achieve the purpose of this study, research questions were raised, hypotheses were
formulated, and a review of related literature was made. The main objective of this study is to examine if
accounting ethics have much impact on the practice of accounting profession in Nigeria, the factors that make
the accountants breach accounting rules and if ethical codes of conduct address all the issues that border on
ethical practices. The study employed a synthesis of descriptive and survey research methods. The major
instrument used for generating the primary data was the questionnaire, which was designed in five-response
option of likert-scale. Two hundred and fifty (250) questionnaires were administered, two hundred and nineteen
(219) questionnaires were completed and returned. The data generated for this study were analysed through
mean scores while the stated hypotheses were statistically tested with z-test. Our findings revealed that there are
other major influence which accountants believe have impact on their professional conducts like policies and
rules of companies where accountants work, religion were found not to have major influence in the professional
conduct of accountants. The legal system and societal value systems also inter-played in the accountants’
professional conduct. It was recommended among others that the accountant in practice needs to pay attention
to good ethical conduct and there is the need to adhere strictly to the ethical code of conduct.
THE ADEQUACY OF ETHICS IN ACCOUNTING PRACTICE IN NIGERIAIAEME Publication
The recent increase in the level of accounting scandals recorded in large
organizations generates disrepute and frequently paints the accounting profession as
unethical. A huge gap exists between the documented form of ethical codes and what
is obtainable in real practice. This study evaluated the adequacy of ethical codes and
conducts in the accounting profession in Nigeria. Survey Research design was used
through the administration of questionnaires. The population comprises of to 3,200
ANAN and ICAN members. Obtained responses were subjected under critical
hypothetical tests based on outlined hypotheses. Findings reveal that code of ethics in
Accounting is adequate for Professional Accountancy Practice in Nigeria and that
lack of awareness of ethical standards is the only statistically accepted that inhibits
strict adherence to the breach of ethical accounting practice in Nigeria
Ethics- Meaning, Business Ethics Concept, Types of Ethics, Ethics and
Values, Indian Ethos and Work Ethos, Moral Standards, Guidelines for
developing code of ethics, Personal Ethics- Value of Self, Promote Happiness,
Emotions and Honesty, Keys to Personal Ethics , Ethics of Virtue and Ethics
of Principle
Similar to Ch# 2 islamic ethics and accounting. (1) (20)
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
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how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
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How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
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1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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@Pi_vendor_247
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Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
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@Pi_vendor_247
2. Contents
Introduction
Ethics and Accounting
AAOIFI’s Code of Ethics for Accountants
Combining Islamic Ethics in Accounting Education
Conclusion.
2
3. Introduction
Accounting organizations continue to develop various
forms of moral laws in order to maintain its reputation
and credibility and thus support the pillars of those
organizations in the market.
There have been Islamic accounting organizations that
depend on the foundations of Islamic law ethics as
well as the traditional pillars.
These institutions have developed to give new momentum
accounting environment to get the best results that
enhance the confidence of individuals and organizations
working.
3
4. Cont..
In a company, the main role of an accountant is to
prepare the financial statements for the Board of
Director’s, shareholders and stakeholders.
In the preparation, they have to ensure that information is
obtained in a good manner and laid out to show the true
state of the organization.
This goes to show the importance of ethics in today’s
world.
4
5. Cont..
For an Islamic accountant, there is an extra rule to
follow; they have to always comply with the Shari’a
teachings.
Thus, they are not only accountable to the Board of
Directors but also will be held accountable in the
Hereafter if they are carelessness of their duty.
5
6. Cont.…
Unethical behavior in businesses. For instance, a recent survey
of 2000 major US corporations revealed that the following
ethical problems (arranged in order of importance) concerned
managers:
Drug and alcohol abuse
Employee theft
Conflict of interest
Quality control issues
Abuse of company assets
Environmental pollution
7. Cont.
According to Mary (2005) In a survey of 300 companies
across the world, over 85% of senior executives indicated
that the following issues were among their top ethical
concern:
– Employee conflict of interest
– Unsuitable gifts
– Sexual harassment
– Unauthorized payments
8. Ethics and Accounting
Islamic Ethics:
The Arabic term: akhlaq (singular, khuluq) is laterally
translated into English as “ethics”.
Ethics may be defined as the set of moral principles that
distinguish what is right from what is wrong.
Ethics has a two objective:
i. it evaluates human practices by calling upon moral
standards
ii. it gives prescriptive advice on how to act morally in a
given situation.
8
9. Ethics and Accounting
Conceptually, akhlaq includes two meanings;
first akhlaq (ethics) means the science (ilm) that deals
with the standards of right and wrong of human
conducts, particularly “what humans out to do”.
Ethics as science refers to the study of the ethical conduct
and behavior; and in this case, ethics means the human
effort of studying moral standards and conducts to
ensure that man possesses the right understanding of
moral behavior
Second, akhlaq means “good character” or good human
behavior (al-akhlaq al-fadilah). In this understanding
ethics is the human character that prescribes to refrain
from immoral conducts such as cheating, corruption,
discrimination, lying, stealing, murder, assault,
slander, rape, fraud, and etc.,. 9
10. Ethics and Accounting
Thus, the importance of their attendance in accounting
rests primarily in their real effects on the life of individuals
in the society.
Behaving ethically is an essential and expected trait of
accountants where they are commonly thought of as a
public watchdog.
In this respect, accountants are expected to follow to the
rules of confidentiality, objectivity and independence.
Some argued that accountants have obligations to
shareholders, creditors, employees, suppliers, the
government, the accounting profession and the
public.
10
11. Ethics and Accounting
Accountants are also accepted as gatekeepers of
financial markets.
Without accountants to ensure quality and integrity of
financial information, the markets for capital would be
by far less efficient, the cost of capital would be
higher, and the standard of living would be lower.
Ethics is important to accountants and those who rely on
information provided by accountants because ethical
behavior entails taking the moral point of view.
Thus, accounting can be considered as a moral discipline
as it requires accountants to have a responsibility to the
society to clearly communicate data that do impact
decision making.
Much of the content of accounting information is moral
content as well as economic content.
11
12. AAOIFI’s Code of Ethics for Accountants
The only notable effort so far to establish a code of Islamic
ethical conduct for accountants was developed by the
Accounting and Auditing Organizations of Islamic
Financial Institutions (AAOIFI) in 1998.
The AAOIFI is a body established with the objective,
among others, to develop, promulgate, and review
accounting standards to be complied with by the
member institutions.
The rules of ethical conduct stated in this code shall apply
to:
Internal accountants of IFI
Internal auditor and of IFI
External auditors of IFI
12
13. Continues…….
The AAOIFI’s code of ethical conduct for accountants presents an
ethical framework for accountants derived from the shari’ah rules
and principles.
The basic assumption of this code is that Muslim accountants will be
motivated to comply with such a code for reasons due to religious
beliefs and as a means of obeying Allah’s orders and refraining
from things forbidden by Him.
The code also aims to help in developing the accountant’s ethical
awareness by bringing to their attention ethical issues involved in
professional practice.
13
14. Continues…….
The structure of the AAOIFI’s code of ethical conduct
consists of three sections;
The shari’ah foundations of accounting ethics,
The principles of ethics for accountants, and
The rules of ethical conduct for accountants.
The Shari’ah foundations of accounting ethics
delineate seven basic foundations:
1) integrity,
2) honesty,
3) piety, ()التقوى
4) righteousness, ()البر
5) Allah-fearing, and,
6) accountability to Allah. 14
15. Continues…….
From these six foundations, AAOIFI developed six
basic ethical principles;
1. trustworthiness,
2. legitimacy,
3. objectivity,
4. professional capability and diligence,
5. faith-driven conduct, and
6. professional conduct and technical standards.
Finally, for all six ethical principles, they developed
guiding rules for accountants in their
professional works.
15
16. Continues…….
Ethical Principles Rules of Ethical Conducts
1. Trustworthiness
– high degree of integrity,
truthfulness, honesty and
probity, and respect of
confidentiality of information.
I. Present and communicate relevant
financial and nonfinancial
information honestly, truthfully
and with adequate transparency
II. Refrain from disclosing
confidential information unless
required by the relevant
accounting and auditing
standards.
III. Refrain from using confidential
information for unethical
advantage.
IV. Refrain from any actions or
behaviors that may risk the
institution’s religious and ethical
objectives
17. Continues…….
Ethical Principles Rules of Ethical Conducts
2. Legitimacy –
all professional duties must
be according to Shari’ah.
I. Priority of accountability to Allah
over accountability to others.
II. Aware of relevant Shari’ah rules
and principles especially regarding
financial transactions through
formal training.
III. Responsible for verifying the
religious legitimacy of events
he/she is accounting for or
auditing
IV. Ensure Shari’ah compliance of all
business activities and
transactions.
18. Continues…….
Ethical Principles
Rules of Ethical Conducts
3. Objectivity – fair, impartial
and equitable, free from
conflict of interest and
independence in fact, and as
well as in appearance.
I. Refuse gift, that would threaten
objectivity of professional
judgment.
II. Avoid actual or apparent conflict
of interest such as personal or
family relationships.
III. Avoid situations that would
damage independence in fact and
in appearance such as owning
significant number of shares in
client’s firm (in the case of
auditor).
IV. Refrain from engaging in other
professional activities while
auditing the client.
19. Continues…….
Ethical Principles Rules of Ethical Conducts
4. Professional capability and
carefulness –
performing duties carefully
and properly, and
accountable to Allah first and
foremost, and others such as
superiors, profession, client,
and society.
I. Acquire suitable level of academic
and professional competence,
sufficient knowledge of Shari’ah
related to financial transactions, and
keeping with new development of
accounting profession and
standards.
II. Refrain from agreeing to perform
professional duties unless sufficiently
competent to perform.
III. Provide high quality work of
professional services in accordance
with Shari’ah rules and principles,
and relevant laws.
IV. Ensure quality control of the
subordinates and assistants in the
performance of professional duties.
V. Ensure report are complete, clear and
supported by suitable analyses of
relevant and reliable information.
20. Continues…….
Ethical Principles Rules of Ethical Conducts
5. Faith-driven conduct –
Behavior and conduct consistent
with Islamic values and Shari’ah
rules and principles.
I. Continuously aware of Allah’s
surveillance (self-monitoring)
II. Continuously conscious of
accountability before Allah on the
day of judgment (self
accountability)
III. Be sincere in performing
professional duties, seeking Allah’s
satisfaction and not submitting to
human pressures.
IV. Fulfill promises and honor
agreements.
V. Co-operate with others to ensure
smooth and efficient performance of
professional duties.
VI. Show love and brotherhood for the
sake of Allah to enhance co-
operation and trust when dealing
with others.
VII. Be kind in dealing and in handling
problems with others.
VIII. Set good example for assistants and
subordinates.
21. Continues…….
Ethical Principles Rules of Ethical Conducts
6. Professional conduct and
technical standards –
comply with relevant standards
as adopted by the society as long
as it does not violate the Shari’ah
rules and principles.
I. Comply with relevant accounting and
auditing standards.
II. Perform professional duties diligently.
III. Refrain from engaging in activities and
conducts that may jeopardize
integrity, objectivity and
independence such as marketing and
promoting himself/herself in ways not
commensurate with his ability.
IV. In the case of replacing another
professional accountant, the new
accountant should ascertain the
reasons of replacement and refrain
from accepting the new appointment
unless the reasons for change are
acceptable, and are not due to refusal
to submit to pressures especially in
violating Shari’ah rules and
principles.
22. Combining Islamic Ethics in
Accounting Education
There is a growing concern over the apparently low
moral standards of some accountants and an
increasing number of academics who suggest that the
education system should bear some of the
responsibility.
Ethical components in accounting education have
been found to be insufficient and there is a lack of
emphasis on humanizing accountants.
This is aimed at providing awareness to accounting
students and accountants on the process to resolve
ethical conflicts.
22
23. Ethical dimension
The study of Islamic worldview and ethics provides a
different ethical dimension on accounting
education.
Here, the debates on ethics in accounting education
need to start with values, not on codes of
professional conduct, and on responsibilities, not
on rules
A critical evaluation of the AAOIFI’s code of ethical
conduct indicates that having a code is not a
solution to the ethical challenges faced by
accountants.
23
24. Continues…….
The AAOIFI’s code of ethical conduct can be of use as a
guide to Muslim accountants and accounting students.
However, the code of ethical conduct cannot and does not
intend to provide an operational guide for, or impart
ethical awareness among accountants and accounting
students.
Empirical studies need to be undertaken to explore the
acceptance of this code especially among accountants and
auditors of Islamic financial institutions that have
adopted the AAOIFI’s code of ethical conduct as their
guide.
24
25. Islamic ethical perspective
From an Islamic ethical perspective, in order to fulfill
this expectation of the public, accountants need to
understand that, first, they are responsible to the
public and, second, by fulfilling this responsibility
(amanah) based on truth and justice, their actions will
be considered as righteous deeds (amal salih).
The success or failure of human life as viewed by Islam
exceeds this worldly pleasure to the judgement and
reward by God in the hereafter. The principle of
maslahah can contribute to establishing guidelines for
ethical judgement for accountants.
25