Yakub02
Banned
Accountants in business-
Accountants in business are often responsible for the preparation of accounting information.
Accountants in business need to ensure that they do not prepare financial information in a way that is misleading or that does not show a true and fair view of the entity’s operations.
Accountants who are responsible for the preparation of financial information must ensure that the information they prepare is technically correct, reports the substance of the transaction and is adequately disclosed.
There is a danger of influence from senior managers to present figures that inflate profit or assets or understate liabilities.
This puts the accountant in a difficult position. On one hand, they wish to prepare proper information and on the other hand, there is a possibility they might lose their job if they do not comply with their managers wishes. In this case, ethics starts with the individual preparing the information.
They have a difficult decision to make; whether to keep quiet or take the matter further. If they keep quiet, they will certainly be aware that they are not complying with the ethics of the accounting body they belong to. If they speak out, they may be bullied at work into changing the information or sacked.
Preparation and reporting of information Chartered accountants in business are often involved in the preparation and reporting of information that may either be made public or used by others inside or outside the employing organisation.
Such information may include financial or management information, for example: i. forecasts and budgets; ii. financial statements; iii. management discussion and analysis; and iv. the management letter of representation provided to the auditors as part of an audit of financial statements.
Accountants in business are often responsible for the preparation of accounting information.
Accountants in business need to ensure that they do not prepare financial information in a way that is misleading or that does not show a true and fair view of the entity’s operations.
Accountants who are responsible for the preparation of financial information must ensure that the information they prepare is technically correct, reports the substance of the transaction and is adequately disclosed.
There is a danger of influence from senior managers to present figures that inflate profit or assets or understate liabilities.
This puts the accountant in a difficult position. On one hand, they wish to prepare proper information and on the other hand, there is a possibility they might lose their job if they do not comply with their managers wishes. In this case, ethics starts with the individual preparing the information.
They have a difficult decision to make; whether to keep quiet or take the matter further. If they keep quiet, they will certainly be aware that they are not complying with the ethics of the accounting body they belong to. If they speak out, they may be bullied at work into changing the information or sacked.
Preparation and reporting of information Chartered accountants in business are often involved in the preparation and reporting of information that may either be made public or used by others inside or outside the employing organisation.
Such information may include financial or management information, for example: i. forecasts and budgets; ii. financial statements; iii. management discussion and analysis; and iv. the management letter of representation provided to the auditors as part of an audit of financial statements.
