WHAT IS ACCOUNTING ETHICS

The term accounting ethics are formed by the combination of two different words, namely accounting and ethics.

Fortes, (2011) believes that ‘accounting is the collection, measurement, analysis and reporting of events in financial terms.’ While Karthik, (2010) believes that ‘ethics in its broader sense, deals with human conduct in relation to what is morally good and bad, right and wrong. It is the application of values to decision-making. These values include honesty, fairness, responsibility, respect and compassion.’

Therefore, merging the two together will definitely assist in arriving at a proper definition of the term. Hence, accounting ethics can simply be defined as the general rules governing the accounting profession and setting a standard for the practitioners in making the right professional decisions at all times in order to abide by the rules. Dyson, (2010) believes that “accounting ethics relate to the moral code or principles expected to be adopted in the preparation of accounts”.

It should be noted that the importance of accounting ethics cannot be underestimated as it plays a vital role in the daily professional activities of an accountant. It is obvious that in the process of