13 Apr Ethical Considerations for Accountants | Thakur-Chabert
The Ethical Considerations for Accountants is extensively acknowledged that accountants need more than just professional competence because their actions add to the ethical and fair culture of organizations.
Ethical dilemmas are not simply resolved as they often engross different perspectives and alternatives. Often there are diverse ethical and moral considerations that may comprise the environment, wealth allocation, and personal relationships. Therefore, accountants often face a variety of ethical dilemmas, and identifying and dealing with these dilemmas is a considerable part of being a professional accountant.
Principles of Ethical Considerations
Strong ethical principles and behavior are progressively more important in the digital age as there is a possibility for increased sort of threats. The threats to ethical behavior can be classified as follows:
- Self-interest threat: a monetary or other interest (personal/organizational) will unsuitably persuade a professional accountant’s decision or conduct.
- Familiarity threat: owing to a recognized or close relationship with a client or employer, a professional accountant will be excessively sympathetic to that party’s interests or too accepting of their work.
- Intimidation threat: a professional accountant will be discouraged from acting impartially because of concrete or distinguished pressures, including attempts to apply undue influence over the professional accountant.
- Self-review: a professional accountant will not calculate properly the results of a previous judgment, made earlier in the route of providing a current service.
- Advocacy: a professional accountant will endorse a client’s or employer’s position to the point that the professional accountant’s impartiality is compromised.
Ethical behavior aids to build trust. Stakeholders are much more expected to continue investing their trust in the accountant if there is a conviction that the accountant will always act morally. There are several ways of addressing an ethical issue and a few such ways are outlined below:
- The accountant must establish the nature of the judgment that has to be made by determining the framework of the ethical dilemma.
- The accountant must establish whose rights and interests are influenced by the decision.
- The accountant must establish the rules of professional performance, internal and external authority codes, and appropriate laws.
- The accountant should set out the arguments for and against taking a specific course of action.
- The accountant musts devise a solution that does fairness to the arguments for and against the action to be taken.
- The accountant needs to take into consideration any negative outcomes of taking or not taking the action
It can consequently be seen that, though the environment in which an accountant functions may change, the basic ethical considerations stay the same.
At Thakur Chabert, we comprise a team of fair and ethical Accountants, whose integrity lies with their clients, and their interest is our priority, no matter what. Our ethical considerations can never be compromised, irrespective of the digitalization or new market trends.