Accounting Principles and Ethics Essay Example | Topics and Well Written Essays - 750 words

Accounting Principles and Ethics - Essay Example (p. 186) As always, it is important to consider three major perspectives: the client or the company, the profession as an accountant, and the society when doing a financial statement. In preparing a financial report, it is simply not enough for accountants to just follow some rules. Following the general guidelines in accounting is one way to achieve a correct accounting structure or format. However, it is never enough to just follow the accounting rules and principles. It is equally important for the practitioner to practice good ethics by making a good judgment in supporting or auditing a financial report. It has been argued that it is always easy to make an altered financial statement look good by merely following the general rules in accounting principles without applying the necessary ethical consideration. It is possible for some management to use accounting expertise in hiding some corporate financial problems by simply changing the figures in the report or using some inter-company strategy in order to make sales appear promising. (Fager, 2002) In doing so, the accountant clearly violates the US generally accepted accounting principles (GAAP) as well as it misleads a lot of prospective investors by making the financial statement appears good. When the accountant interpret the figures in making a financial report, the practitioner should be reasonable enough to judge or view things accurately. (p. 247) For example, it is important for the accountant to have a very good character such as avoid greediness which may result to being a victim of bribery. (p. 28) In order to avoid greed, accountants need to be satisfied with the amount of income he / she is earning. In case the practitioner desires more than his / her usual earning, it is easier for big business owners to become an easy target of bribery. When we talk about virtues, we are simply referring to a personal trait that enables a person to carry out a sensitive task well. Accounting is a