Identify a current business issue Research Paper

Identify a current business issue - Research Paper Example This has caused businesses to take a step back and consider ethics seriously. Companies rely on auditors and accountants for their financial processes. For this reason, a strict code of ethics should be followed by accounting professionals. Even though it is common to find unethical behavior in accounting professions, ethics in accounting is vital because it is important to ensure a correct and clear financial image of a business, to instill confidence and trust with stakeholders and the public and to prevent fraud, embezzlement or financial scandals. Ethics are the backbone of any business and it is vital that ethics are implemented within the accounting and bookkeeping systems of an organization (Axline, 1990). Like other operating bodies involved in business activities, Accountants also need to focus on ethics set by the company in order to solve the problems and complexity that they will encounter. For example, the capital markets’ need to focus on the broken up profits th at may attract an organization’s management authorities to bend or even break accounting rules to inflate reported net income. In these situations, technical competence is not enough to resolve the dilemma (Hoffman, 1996). Qualitative Research The chosen method of qualitative research for conducting research on Ethics in Accounting is literature review, which facilitates the researcher to read and analyze the collected data from various sources and incorporate it in his research. Hypothesis Even though it is common to find unethical behavior in accounting professions, ethics in accounting is vital because it is important to ensure a correct and clear financial image of a business, to instill confidence and trust with stakeholders and the public and to prevent fraud, embezzlement or financial scandals. Literature Review Ethics are said to be an intangible asset of any organization and a key to success as it a system which is led by the moral and fair systems helps distinguishi ng the wrong or right. Problems in ethical system are, infect, a situation faced by a group of persons or by an individual, and to solve these ethical problem, they need to get complete information (â€Å"Role of Ethics in Accounting†, 2011). According to Axline (1990) in his journal about accounting, ethics are the backbone of an organization and play a vital role in the development of the organization. As the importance of ethics is increasing, organizations are becoming more conscious about the ethical system in their book keeping and accountancy. Ethical environment in the accountancy and book keeping is now subject to scrutiny and criticism from the media, regulators, and public interest groups (Axline, 1990). Although accounting is a very helpful record of a business and it is a most valuable sort of knowledge, people who are directly or indirectly related to the firm believes that the accounting records should be same like a pure science and it should be strong enough to solve some problems of the firm. Similar to the medical and legal professions, society is also obligate to give grants to the public accountants some extra and especial rights which help them improving their performance and handle certain activities with more proficiency as they are suppose to get something good in return (Mautz, 1988). Professional practitioners are always on the higher expectations of the public and they are