Ethics in Acc & Finance

BLITZKRIEG SAGAR SALIM BUBESH M.S AGHIL ANTONY MUHAMMED ROSHAN ABDUL NAZAR KRISHNAPRIYA N.V RAMYA K.
P SREELAKSHMI K.R
Finance is a social science discipline. The discipline borders:

behavioral economics sociology economics accounting and management.
It concerns technical issues such as the mix of debt andequity,dividend policy, the evaluation of alternative investment projects,options,futures,swaps, and otherderivatives,portfoliodiversification and many others.
Accountingis defined by theAmerican Institute of Certified Public Accountants(AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.
Accountancyis the process of communicating financial information about abusiness entityto users such asshareholdersandmanagers.The communicationis generally in the form offinancial statementsthat show in money terms theeconomic resourcesunder the control of management; the art lies in selecting the information that is relevant to the user and is reliable.Theprinciplesof accountancy are applied to business entities in three divisions of practical art,
Ethics, also known asmoral philosophy, is a branch ofphilosophythat addresses questions aboutmoralitythat is, concepts such asgood and evil, right and wrong,virtueandvice,justice andcrime, etc.
Accounting ethicsis primarily a field ofapplied ethics, the study ofmoral valuesand judgments as they apply toaccountancy. It is an example of professional ethics. Accounting ethics were first introduced byLuca Pacioli, and later expanded by government groups, professional organizations, and independent companies
Relate accounting education to moral issues. Recognize issues in accounting that have ethical implications. Develop "a sense of moral obligation" or responsibility. Develop the abilities needed to deal with ethical conflicts or dilemmas.
Learn to deal with the uncertainties of the accounting profession. "Set the stage for" a change in ethical behavior. Appreciate and understand the history and composition of all aspects of accounting ethics and their relationship to the general field of ethics. Stephen E. Loeb
ETHICAL ISSUES IN ACCOUNTING
Provides fair and accurate reporting of the financial position of a business Ethical issues Reporting income, falsifying documents, allowing or taking questionable deductions, illegally evading income taxes, engaging in frauds etc.
FRAUD IN FINANCIAL STATEMENT CAN BE COMMITTED IN 5 WAYS:
Fictitious revenue-revenues not actually earned Fraudulent Timing differences Concealed liabilities and expenses Fraudulent disclosures or Omissions Fraudulent asset valuation-false statement of the inventory available
TYPES OF ACCOUNTS
Financial Accounts >company uses to report to their shareholders Internal Management Accounts >shows the internal operations of the business and its financial activities
ROLE OF ACCOUNTANTS

To provide information to the new investors 2 types of accountants
Accountants employed by the organization >takes care of the internal management accounts of various depts.
types >Management accountant
>
Financial accountant
formulating policies planning and controlling the activities of the employees decision making disclosure to shareholders etc.
Economic information to the investors, employers, suppliers, outside people
Accountants in professional practice

provides 2 types of accounting service
1. The auditor - Appointed by shareholders to audit a particular company - Duties include: to give an accurate statement about the state of affairs to meet the objectives of the Companies Act to be reasonably skillful and careful in identifying the true nature of accounts
2.
-
Accountants in related services

Offer services in different fields like: Tax services Management consultancies Insolvency services Environmental audits
The Ethical Audit

Main purpose- check the actions of a firm
Objectives

Assess the bus. structure and procedures, systems and policies Whether busi. Activities comply with the standards To identify the way in which it does business Evaluate whether mgmt. has relevant inform. in running the busi.
To help busi. undergo major alterations like restructuring To identify the training necessary for the employees Establishing ethical conduct of business to attract valuable investments Establish code of conduct Helps the shareholders to evaluate the performance of the directors and vice versa
The purposes of the Code of Ethics are to deter wrongdoing and to promote:
honest
and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships
full,
fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the SEC) and in other public communications made by the Company.
compliance with applicable governmental laws, rules and regulations the prompt internal reporting to the Companys General Counsel and/or the Audit Committee of violations of the Code of Ethics accountability for adherence to the Code of Ethics.
Members of the Accounting and Finance Team shall: act with honesty and integrity by avoiding. conflicts of interest between his or her own interests and the best interests of the Company. accepting improper personal benefits as a result of his or her position with the Company. comply with all applicable laws, rules and regulations of federal, state, provincial and local governments, and the rules and
act in good faith, responsibly, with due care, competence and diligence, and without misrepresenting material facts or allowing independent judgment to be compromised
encourage and reward professional integrity in all aspects of the Companys organization by eliminating barriers to responsible behavior such as coercion and fear
responsibly use and control Company assets and resources employed by or entrusted to them actively promote ethical behavior among peers in the work environment
ETHICAL ISSUES IN FINANCE

Importance of Financial Statement & steps to be taken by the management for true, fair and reliable mgmt. accounts: Determining the key elements of the business like the objectives and see how they are defined and measured Making sure that the funds are allocated to different activities on the basis of their importance Frame rules that have a positive effect on business activities
The Company expects all members of the Accounting and Finance Team to honor and abide by the Code of Ethics in all respects. Members of the Accounting and Finance Team who violate the Code of Ethics will be appropriately disciplined through action up o and including termination. The Audit Committee of the Board of Directors shall monitor and make determinations and recommend action to the Board of Directors with respect to

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BLITZKRIEG SAGAR SALIM BUBESH M.S AGHIL ANTONY MUHAMMED ROSHAN ABDUL NAZAR KRISHNAPRIYA N.V RAMYA K.

Finance is a social science discipline. The discipline borders:

ETHICAL ISSUES IN ACCOUNTING

FRAUD IN FINANCIAL STATEMENT CAN BE COMMITTED IN 5 WAYS:

To provide information to the new investors 2 types of accountants

types >Management accountant

Economic information to the investors, employers, suppliers, outside people

Accountants in professional practice

Accountants in related services

The Ethical Audit

ETHICAL ISSUES IN FINANCE

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