Ethics Resource for Professional Accountants
Ethical responsibility probably isn't the first thing that comes to mind when people consider professional accountants. But if the recent economic collapse is any sign, responsible and transparent accounting practices are key to a smooth-functioning economic sector. Accountants must make sure businesses run efficiently, and they also must adhere to ethical standards. Here is a list of reputable resources for accountants who are looking for ethical guidance. These links cover international ethics codes as well as U.S. standards, organizations that specialize in accounting ethics, and information on basic ethical rules.
International Ethics Codes - U.S. Ethics Codes - Accounting Ethics Organizations - Information on Basic Accounting Ethics
International Ethics Codes
- International Ethics Standards Board for Accountants: The IESBA composes international ethical standards for professional accountants and auditors. The board also hosts discussions surrounding accounting ethics.
- International Financial Reporting Standards: This "principle-based" set of accounting guidelines is meant to apply to a wide variety of accounting situations. The standards cover both specific accounting techniques and abstract principles which should guide the accounting process.
- International Accounting Standards Board: The IASB is the independent, private-sector organization that develops the International Financial Reporting Standards. Here you can learn about how they set standards, as well as their other goals.
- Australian Association of Accounting Technicians Standards: Here you can read the ethical guidelines for Australia's accounting professional organization. The guidelines are principle based, rather than rule based.
- Basel Committee Review of International Accounting Standards: This international organization meticulously reviewed the International Accounting Standards Committee's accounting standards. The committee focused on the effect of the standards on banks.
U.S. Ethics Codes
- Generally Accepted Accounting Principles: The GAAP are the set of rules which accountants are expected to adhere to in the United States. These rules are drafted by the Federal Accounting Standards Advisory Board.
- Sarbanes-Oxley Act: This federal law was passed in 2002 in response to the corporate financial scandals of WorldCom, Tyco, Adelphia, and more. The law set new standards for public accounting firms.
- North Carolina Accountancy Statutes: This exhaustive article covers the expected professional ethics and conduct for certified accountants in North Carolina. The statute is rule based and has guidelines for appropriate action in many accounting situations.
- Massachusetts Code of Ethics for Professional Accountants: The Office of Consumer Affairs and Business Regulation presents this code of conduct for accountants. The rules cover technical standards as well as responsibilities to clients.
- Oregon Ethics Requirement: Here you can read the ethics requirement for accountants in the state of Oregon. The site has information about keeping one's accounting certification up to date in the state.
Accounting Ethics Organizations
- International Federation of Accountants: The IFEA is the group that develops international ethical standards. Their mission is to safeguard public welfare by developing sound accounting practices.
- Public Company Accounting Oversight Board: This nonprofit, private company was created by the Sarbanes-Oxley Act of 2002. The purpose of the board is to govern the practices of public accounting firms.
- Governmental Accounting Standards Board: This group develops ethical standards for public-sector accounting. The group itself is not a government entity and provides an important watchdog role.
- American Accounting Organization: This trade organization's mission is to promote excellence in accounting practices. Their site hosts information about upcoming meetings of accountants and updates to ethical guidelines.
- U.S. Government Accountability Office: The GAO acts as a congressional watchdog to keep track of spending. The group tracks governmental spending in order to make the legislative process more transparent.
Information on Basic Accounting Ethics
- Guidelines for Accounting Ethics and Career Protection: This helpful sheet provides some of the major ethical issues one might confront as an accountant and how to respond appropriately. It's written in a common-sense tone with easily interpreted language.
- The Ethics of Creative Accounting: This paper explores some of the most high-profile ethical missteps an accountant can take. It explains "creative accounting" and why it should be avoided.
- American Institute of CPAs Ethically Speaking Newsletter: This newsletter will keep you up to date on ethical standards for public accountants. Its articles will help accountants stay ethically compliant.
- Generally Accepted Accounting Principles: This government website has a synopsis of the major principles of the GAAP. It provides special information for those interested in governmental accounting.
- CliffsNotes to the Generally Accepted Accounting Principles: This CliffsNotes site summarizes the basic tenets of the GAAP in very clear, easy-to-understand language. The site also covers other basic accounting information.