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'Ethics' is the study of values and customs of a person or group. It is a belief that each member of a group bears some responsibility for the well being of other members. Inflated figures for cash and bank balances as against 5,040 crore (us$ 1. Billion) reflected in the books.
'Ethics' is the study of values and customs of a person or group. It is a belief that each member of a group bears some responsibility for the well being of other members. Inflated figures for cash and bank balances as against 5,040 crore (us$ 1. Billion) reflected in the books.
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'Ethics' is the study of values and customs of a person or group. It is a belief that each member of a group bears some responsibility for the well being of other members. Inflated figures for cash and bank balances as against 5,040 crore (us$ 1. Billion) reflected in the books.
Hak Cipta:
Attribution Non-Commercial (BY-NC)
Format Tersedia
Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
The auditor Accountants in related services Vhat are ethics?
' Derived from the Ancient Greek word µethikos¶ means customs and habits,
' Introduced by µLuca Pacioli¶
' Choosing honest & fair actions
' DEFINITION: A major branch of philosophy which is the study of
values and customs of a person or group and covers the analysis and employment of concepts such as right and wrong, good and evil and do's and don'ts.
' It is a belief that each member of a group bears some responsibility
for the well being of other members. E.g. Bonus
' Formal statement of the organization's values relating to the
profession and practice Role of Ethics
' Provides fair and accurate reporting of the financial
position of a business
' Increase public¶s trust on the organization
' Maintains level of self discipline
Ethical issues in accounting
' Issues ' Possible reasons
False information Aggressive financial targets Hiding cash Dominations by higher Overbilling clients authority Delaying vendor payments Pressure to reduce tax Concealed liabilities and liabilities expenses Inadequate monitoring of Reporting false income significant controls Fraudulent asset valuation Veak corporate ethics Improper or fraudulent commission Bribery Inside trading Burning examples :
Enron Satyam computers
Raju confessed that Satyam's balance sheet of 30 September 2008
contained: ' inflated figures for cash and bank balances of 5,040 crore (US$ 1.14 billion) as against 5,361 crore (US$ 1.22 billion) reflected in the books. ' an accrued interest of 376 crore (US$ 85.35 million) which was non- existent. ' an understated liability of 1,230 crore (US$ 279.21 million) on account of funds was arranged by himself. ' an overstated debtors' position of 490 crore (US$ 111.23 million) (as against 2,651 crore (US$ 601.78 million) in the books Enforcement of ethics
' American Institute of Certified Professional
Accountants (AICPA) for the Certified Professional Accountants ' Institute of Internal Auditors (IIA) for the Certified Internal Auditors ' Institute of Management Accountants (IMA) for certified management accountant ' Government regulatory bodies such as ± SEC, FASB etc. Fundamental principles
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v | v || | v Conclusion :
³Vhen accountants (including auditors) fail to
provide investors with reliable information that is relevant to their capital allocation decisions, then investors and all citizens with stakes in the success of the economic system suffer.´ Thank You