Accounting Issues analysis

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The basic trait of any professional in the field of accounting is faithfulness to a rigorous set of ethical guidelines. Ethical codes are a path that accounting professionals like to pursue to expand their practice, improve public faith and trust and illustrate impartiality and equity. Accountants work with people and organisations' personal financial details. Many have the ability to perform million-dollar transactions and others help to safeguard cab driver and social worker pension funds. To practice sound judgment, an accountant must remain up-to-date on developments which might affect the outcome of a decision.

Environment in accounting industry

Ethics and Accounting Industry

Ethics in accounting are concerned with how to create good and moral decisions can be made involving the planning, analysis and dissemination of financial information. Ethics in the accounting industry is regarded primarily as applied ethics, which places great importance on human and business ethics, decisions, moral standards and their implementation in accounting (Jaijairam, 2017). The crucial ethical factors in the field of accounting are usually a reasonable preparation and a high standard of professionalism. Ethical responsibility throughout the business world is not comprehensive but deceit within the specific domain of ethical conduct (Micewski & Troy, 2007, cited in Jaijairam, 2017). Several companies around the world have found ethical issues in the accounting processes, which raises the potential for conflict of interest. Violation of ethical rules within the business finance procedure typically harms the credibility of an entity, the level of customer satisfaction and the faith of investors in the business (Jaijairam, 2017).

Ethics are therefore used it to analyze moral standards and principles, human interactions, and their effort to differentiate between good and bad. Developing ethical codes within organizations can protect the integrity and reliability of business transactions and financial processes which as a result, affect the company's employee performance, relationship, and reputation. One of the practical usage of ethics in accounting is that the end users can take benefits. Business world expect that accounting professionals work accurately, timely and convey transparent information to all the users. 

Corporate Governance and Accounting Industry

The contribution of corporate governance purely based on the organizational performance, financial reporting, and stakeholder satisfaction. According to Leventis, Dimitropoulos, and Owusu-Ansah (2013), as cited by Walker (2018) there is not as much contribution and effect of corporate governance in the accounting industry. Accounting companies has different type of corporate governance than other industrial companies. This is due to various reasons such as financial sector is more multifaceted and less apparent than other non-accounting companies (Leventis et al., 2013, as cited by Walker (2018). The accounting sector also fails to explain the presence of strong corporate governance. Whereas the accounting sector is portrayed by excessive precautionary measures and risk testing, but that does not imply strong corporate governance by accounting institutions (Walker, 2018).

Consequently, financial institutions continue to incorporate standard corporate governance models (Bokpin, 2013). Employee compensation may be used by government regulation as a tool for financial firms and the accounting industry (Bokpin, 2013). The accounting industry is subjected to various conflicts between agents that may reduce the usefulness of corporate governance programs, as management focuses on dispute mitigation (Leventis et al., 2013).

Say for instance, the family-owned businesses of the accounting industry are distinguished by conservatism. It is necessary to maintain conservatism while dealing with estimates and funds because this thing will confirm the reports and data on the topics of the possible problems. Hence, it is concluded that effective corporate governance will entail less conservatism in the accounting industry and vice versa. Moreover, precision and reliability are far more valuable in the accounting industry than an innovative development process.

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