The importance of accounting ethics

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The importance of accounting ethics by Mind Map: The importance of accounting ethics

1. Principles

1.1. Ethics is important enough in accounting to have earned a dedicated set of principles.

1.1.1. Independence and objectivity

1.1.2. Integrity

1.1.3. Confidentiality

1.1.4. Competence

1.1.5. Professional conduct

2. importance

2.1. ethical considerations are necessary and timely. Finance is the process of managing money and keeping a set of books that provide information about how your company earns and spends its cash.

2.1.1. financial reports represent your profit and loss, net worth and cash flow situation.

2.1.2. right to know whether their company is making or losing money and whether they are making investments.

3. Utilitarian ethics and accounting

3.1. A utilitarian approach to ethical thinking argues that moral behavior produces the greatest good for the greatest number of people.

3.1.1. benefit of an honest evaluation of your loan's creditworthiness.

4. Categorical imperatives and accounting

4.1. is a more abstract approach to ethical thinking. Rather than expressing moral principles in terms of your costs and benefits, a categorical imperative weighs the motivation behind an action and judges whether it has merit as a matter of principle.

4.1.1. No unethical accounting and finance practices

4.1.2. Without misrepresenting your financial situation.

5. Understanding gray areas

5.1. Ethical issues in finance and accounting are often framed in black-and-white terms, with moral choices presented as simple and clear-cut.

5.1.1. It forces you to ask tough questions and make continual judgments.

6. concept

6.1. ethics in financial management is legal, practical and moral.

6.2. Ethical accounting also makes practical sense.