What is ethics? Etymologically speaking, it comes from the word “ethos”, which means “set of traits and modes of behavior that make up the character or identity of a person or a community”. 

It is a fairly simple definition, however, it is a topic that has been addressed throughout history and that, without a doubt, applies with direct importance in those professions that include social service. Like accountants, for example.

 In the end, despite the different perspectives of the authors who have studied ethics, their purpose has always been to reflect on the foundations of what can be considered “good” or “bad” in human behavior and its interaction with the environment. Environment in which it develops.

The importance of ethics in accounting

By bringing these concepts to the field of work activity, it is feasible to think of professional ethics, understood as the precepts that allow us to act correctly.

Aquiles Menéndez -in his work Professional Ethics- defines this aspect as: “The normative science that studies the duties and rights of professionals as such.” Consequently, the development of any trade must be mediated by a “duty to do”, determined by socially accepted principles and values, since the result of any job always has consequences -negative or positive- for a third party in particular or for the company. Society in general. 

In accordance with the above, it is not ethical -for example- for an engineer to accede to the claims of a corrupt politician and end up constructing a building with materials of lower quality than the one contracted.

In this sense, the accountant is assisted by a high-impact social responsibility, which can only be fulfilled if it operates legally and always based on solid and unwavering professional ethics. Remember that he can practice his profession both in the public sector as in the private sector, and that its field of action is quite broad.

Thus, this professional has access to fiscal, economic and financial information that -when manipulated or translated in bad faith- can benefit a few and affect many others, such as investors, employees of the organization, tax entities and even society. Usually.

It should be noted that the accountant has a tremendous commitment to the State. The health of the treasury depends, to a great extent, on the correct and ethical proceeding of it, because through its work of quantifying economic events and liquidation of tax burdens, two scenarios can occur:

• That taxpayers fully comply with their tax obligations, faithfully presenting the financial information of their businesses.
• That taxpayers commit tax fraud, supported by the knowledge in the matter that the accountant possesses.

You cannot ignore the importance of accounting in the State-Economy relationship, and the consequent social responsibility of the accountant. Remember that -finally- it is with the resources collected through the treasury that the public administration carries out its social, health, infrastructure, educational programs, etc. All, oriented to making improvements for society.

And how is this professional ethics regulated in the accounting field?

As we already told you, professional ethics is the discipline that regulates the activities within each particular profession. In this sense, each science has created different professional or ethical codes that systematically gather the moral duties and obligations that assist its professionals.

• Integrity – involves being open and honest in all professional and business relationships.
• Objectivity: is based on not allowing prejudice, conflict of interest or undue influence of third parties to prevail over professional or business judgments.
• Professional Competence and Due Diligence:  Refers to maintaining knowledge and skill at the levels necessary to ensure that clients receive high-quality professional services.
• Confidentiality: obliges not to reveal the information of third parties obtained as a result of professional and business relationships, unless there is a legal right or duty to do so.
• Professional behavior: comply with the legal and regulatory provisions applicable to the exercise, and avoid any action that discredits the profession.

However, the most common is that trade associations – aware of the importance of ethics and based on international regulations – develop their own codes of ethics to regulate the actions of professionals in the country.

Trustworthy accountant

It should be noted that the Public Accountant is a depository of the trust of the State institutions, and that investors, creditors, employers, the Government and society in general trust him to have solid financial information and competent and timely advice. In addition, he recalls that the behavior of accountants -when providing their services- has an important impact on the economic well-being of the country.

As you can see, the importance of ethics in accounting is of such magnitude for society that ethical regulations have been created all over the world to regulate its activity.

However, you should keep in mind that your actions should not be guided solely by what the rules dictate: you should also keep in mind the rational deductions that you arrive at as a result of your thinking, always keeping in mind the well-being of others.

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