What is the purpose of accounting?

To provide information to decision makers

FRAUD
Three categories of fraud schemes according to the Association of Certified Fraud Examiners: A. Fraudulent Statements B. Corruption C. Asset Misappropriation

FRAUDULENT STATEMENTS
Misstating the financial statements to make the copy appear better than it is Usually occurs as management fraud May be tied to focus on short-term financial measures for success May also be related to management bonus packages being tied to financial statements

ACCOUNTING ETHICS
Accounting ethics is primarily a field of applied ethics, the study of moral values and judgments as they apply to accountancy. Owners, Stockholders, Directors, Presidents desire truth and nothing else, it belongs to the spirit of professional accountancy to seek out and reveal to them the truth.

REGULATORY BODY
International Body International Financial Reporting Standards (IFRS) Indian Body Institute of Chartered Accounts of India (ICAI) GAAP Generally Accepted Accounting Standards

Ethical issues
Under/over reporting income Falsifying documents Allowing or taking questionable deduction Illegally evading income taxes Over/Understating assets

CODE OF CONDUCT
The Code recognizes that the objectives of the accountancy profession are to work to the highest standards of professionalism, to attain the highest levels of performance and generally to meet the public interest requirement set out above. These objectives require four basic needs to be met :-

 Credibility - In the whole of society there is a need for credibility in information and information systems. Professionalism - There is a need for individuals who can be clearly identified by clients, employers and other interested parties as professional persons in the accountancy field. Quality of Services - There is a need for assurance that all services obtained from a professional accountant are carried out to the highest standards of performance. Confidence - Users of the services of professional accountants should be able to feel confident that there exists a framework of professional ethics which governs the provision of those services.

THANK YOU