Are accounting rules and regulations sufficient to ensure ethical behaviour by accountants?

Accounting Ethics


Considering the economy and society, a vital role is being played by professional accountants. The effective utilisation of the resources is being fulfilled by the professional accountants which have been recommending the ways for losing the costs, for increasing the revenues as well as mitigation of the risks. The accountants are required to have complied with the standards of ethics. This is the essay which refers to the extent of the accounting rules and the regulations which is enough for ensuring the ethical behaviour of the accountants.

To what extent are accounting rules and regulations sufficient to ensure ethical behaviour by accountants?

Accounting and the Regulations

The managers are required to control the business. The investors and the managers are being allowed by the accountancy and the companies are compared directly by the regulators. The accounting rules is being set by the GAAP that is the Generally Accepting Accounting Principles which is being utilised for the financial reporting. IFRS that is the International Financial Reporting Standards is utilised majorly within the world. These are regarded as the rules which is being utilised by the companies as well as the accountants during the creation of the financial statements (West 2018). There is a constant evolve is happening within the regulation of the accounting practises for reflecting the requirements of the economy which is being developed. Several scandals during accounting has taken place within the year 2000 which is responsible for rocking the profession of the accounting. These are the scandals which has resulted from the financial statements which is being manipulated. The investors, the creditors and the shareholders were misled by this type of activities.

Significance of ethics within accounting

The regulations of the accounting are required to be effective with the support of the ethical behaviour. The ethical behaviour is being regarded as the final step for confirming regarding the good service and good quality. The regulations are formulated in such a way that is being designed for promoting the ethical behaviour. The ethics are being defined with a wide sense of moral principles.

The ethics which is being used in the accounting is termed as applied ethics, where the human as well as the business ethics is being emphasized on a strong basis, the judgements, the moral values, and the application of this process within accountancy (Lail et al. 2017). A better standard of professionalism is being maintained with the major ethical drivers of the accounting. The discipline of the ethics has been exhibiting the matter which is being linked with the right and wrong, good and evil as well as vice and the virtue. Thus, the moral principles, the human behaviour as well as the efforts for differentiating the good and the bad is being examined by the ethics. Within an organisation, the ethical code development has been securing the fidelity regarding the financial processes and the business transactions. This again affect the performance of the employees, the relationship of the employees as well as the company fidelity (Bhasin 2016).

The character of accountants regarding the timely as well as accurate research of the reports of finance are significant to decision-making through the managers, investors, as well as further officials of senior management (Kleinsmith et al. 2016). Observance to ethics within accounting has also aided in confirming compliance regarding the internal control systems along the standards. Thus, accountants can recognise as well as measurement of the resource wastage, investigate, and accomplish roles that can subsidize to the development of policy formation as well as the identification of the fraud within an organization. The reputation of the individual and the credibility of the individual is not degraded by the unethical behaviours while the criminal activities which is increasing has resulted for a decreasing in the levels of profit.


Thus, from the above essay it is to be concluded there is a requirement of ethics within the rules and regulations of the accounting which is being responsible for enduring the ethical behaviours within the accountants.

Reference List

Bhasin, M.L., 2016. Survey of Creative Accounting Practices: An Empirical Study. Wulfenia Journal KLAGENFURT23(1), pp.143-162.


Lail, B., MacGregor, J., Marcum, J. and Stuebs, M., 2017. Virtuous professionalism in accountants to avoid fraud and to restore financial reporting. Journal of business ethics140(4), pp.687-704.

West, A., 2018. After virtue and accounting ethics. Journal of Business Ethics148(1), pp.21-36. Protection Status
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