The numbers don't lie It's a cliché you've probably heard before. This is also something you probably know isn't true.

Financial figures or data are true and clear only as interpreted and reported by financial professionals. This is the mystery of accounting ethics.

Unfortunately, there are a lot of headlines about businesses in the media. that processes data in an unethical manner that involves fraud, embezzlement or counterfeiting;

But this blog post is not about financial fraud or the negative effects of accounting. These are professionals who want to do the right thing when handling a wide range of privileged and sensitive data in their daily work.

Here is a brief guide to the most common accounting ethics dilemmas. Complete with steps to help you navigate you can also find more details here at moore ms advisory.

Accounting ethics related to conflicts of interest

Let's say you provide a service to both sellers and buyers. Or maybe you're consulting with a client who wants to find another, or maybe you're faced with two clients. Both want to take over the same company.

When it comes to conflicts of interest or even the presence of conflicts of interest. You must ensure that they do not affect your business decisions in a negative or inappropriate way.

To navigate such situations You can create different account teams for different clients. and inform all parties of the nature of the conflict.

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Situations related to maintaining customer confidentiality

Revealing all the information may seem like a noble endeavor. But by offering you might risk violating customer confidentiality by telling, for example, customer A that customer B is looking to take over customer A.

If you find yourself in such difficulties, your best solution might be to withdraw from participation in the buyout.

Impact of financial information

This is perhaps the most common area where accounting ethics comes into play. Common questions you may have are: “Where should I report this expense?” » How you record information can ripple throughout your business and beyond.

This can make the difference between a department showing profits. and another department showing losses This also affects stock prices. Of course, legal rules are a good guide. But many laws have loopholes.

 Is it ethical to take advantage of this by moving the numbers to reach a certain income threshold? In the end You won't break any rules. But what about the spirit of the law?

Faced with such a dilemma, accountants need a way to make difficult but principled decisions. If you struggle with accounting ethics Or question the ethical implications of something in your work? Here are four steps you can take:

1. Identify potential legal issues.

Find out if the issue is regulated by law or policy. The source of the information may be your employer. Your trade association Government regulatory agencies such as the United States Securities and Exchange Commission or all of the above.

The American Institute for Certified Public Accountants (AICPA) has a Code of Professional Ethics, and Financial Executives International Have a Code of Ethics Both are excellent resources if you are unsure about the ethics of a situation you are facing.

The Committee on International Ethical Standards for Accountants has also drafted a new International Code of Ethics. It is expected to come into force by June 2019.

It is described as easy to implement, implement and enforce, as it highlights the importance of fundamental ethical principles for accounting professionals.

2. Get an outsider's perspective.

as a student Think about what you learned about ethics during your accounting studies. Or think about how you would feel if you were a stranger reading about this topic online or hearing about it from a friend or family member.

Sometimes separating an issue from personal and professional feelings can help you put it into perspective.

3. Identify the parties involved.

Think about the people, businesses or stakeholders who could be affected by this issue. or your decision to act or not to act. Keep in mind that some inactions, like failure to report fraud, This can have as much impact as if you were the perpetrator yourself.

4. Get professional advice

If you would like to report unethical or illegal behavior by a fellow accountant or your employer. Seek legal advice either in-house or from an independent firm or access your company's whistleblowing resources

Even though a person's professional ethics are extremely important, But various organizations They should have their own code of ethics. and make sure all employees know it.

Organizations are not just offering more ethics training to their employees. But it also collects and reports ethical data.

If your employer lacks ethics and standards You and your team must encourage ethics and standards. Effective protocols do not offer a solution to every situation. Instead, it serves as a guide for the decision-making process.

When creating a code of ethics from scratch, include guidelines regarding acceptable behavior. Examples of Ethical Dilemmas and Solutions Usage Details and Costs and Consequences of Misconduct

It can be tempting to keep a low profile and not make waves when dealing with ethical issues in accounting.

However, you have a duty to your profession, profession and society to take action against any violations you may encounter.