Question

why is ethics important for accounting? Give an example?

Answer 1

Solution:

Accounting is the lifeline of a corporation. Corporations are formed to earn money and through accounting, proper recording of transactions is what keeps a company going on.

Ethics is an integral part of the accounting profession. If the accountatn - recorder of transactions allows lapses in judgement, then no one can trust operations of teh comany, contract will be questioned, valuation will not be correct, revenue will be incorrect and expenses cannot be compared to anything in existence.

Unethical accountant could steal money or manipulate information in a way that they could profit from it.

Hence for the above reasons, ethics is very important for accounting.