Video Transcript: Accounting Ethics

Hello and welcome. My name is Marlene Green. Back to welcome to  Fundamentals of accounting. One I've been I've been working in accounting  field for approximately 30 years. I have, presently have a bachelor's in  accounting, working on my Master's in accounting, and eventually, hopefully do  a CPA. We're going to get started with accounting ethics. No business is exempt from ethical behavior and practices. However, those dealing with money and  sensitive personal and company information must adhere to strict ethics and  integrity standards. This is imperative to gain and retain the trust of clients,  coworkers and business partners. Integrity is generally considered one  component in the ethical standards of accounting practices another area of  professional competence, accounting is a detailed oriental career that requires  knowledge and skills to do the job correctly. Mistakes lead to problems with  investors, business partners, financial leaders and the IRS. It is imperative that  anyone working at any level in accounting understand what is required on the  job and how to execute it properly. Confidentiality. Accountants see the good,  the bad and the ugly of a company or its or its person's financial situation.  Clients have a right to know that this information is kept the strictest of  confidentiality and is only shared with other professionals. If consult, if  consultation is required to address a specific problem, failure to keep  information confidential could result in bad publicity and possibly defamation of a company or a person, it could also open the door to fraud, identity theft and  other illegal activities if the information is shared with the wrong people. Integrity standards. Integrity covers a lot of different ethical standards that include  honesty, professional conduct in all circumstances, an accountant should always present the facts objectively and refrain from slanting information in a misleading way. An accountant who doesn't demonstrate a high level of integrity isn't  trustworthy and loses the confidence of its clients, independence and objectivity. Most accountants are partnered or licensed to advise clients on investing and  financial services. It's important that accountants maintain a fiduciary  responsibility seeking an objective solution and providing advice based on the  objectivity. It has been a rampant problem in the financial service industry that  produced that products were recommended to clients simply because they  provided the highest compensation to the advisor. Accountants must be  objective with independent viewpoints, especially since they are dealing with the financial details of a company. Professionalism. Professionalism is a standard  that goes beyond the office, whether at a networking event or a party,  maintaining professional demeanor is good business. An accountant should be  law abiding citizens who don't have bad habits such as gambling that could put  them in a risk, a risky position to compromise client information. No one trusts  an accountant who gets drunk at a party and starts spouting off information that  probably is bound to confidentiality standards.