ETHICS IN ACCOUNTING

The profession of accounting has become spotlighted by the events in recent years including namely Enron. The ethical behavior of businesses is becoming increasingly scrutinized at every turn. Thus it is important to specify the nature of conducting accurate and ethically in accounting and how this can be of subsequent benefit to the company as well as the business world in the long run.

The definition of accounting according to Webster's dictionary is "the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results." The purpose of accounting is to provide financial and business information to possible investors, current investors, and management so they can make accurate decisions concerning the company. There are four basic statements that accounting provides: the Balance Sheet, the Cash Flow Statement, the Owner's Equity Statement, and the Income Statement.