Ethics of a management accountant Essay Example | Topics and Well Written Essays - 750 words

Ethics of a management accountant - Essay ExampleThis paper will discuss the ethics of management accountants and explain why there is a need for standardized code of conduct for the financial management practitioners and management be.Ethics refers to the fundamental principles or the moral values and rules that pass on human behaviors on whether they atomic number 18 right or wrong on a specified line of profession. Ethics of a managerial accountant are meant to ensure that a certain level of trust is attained within the institutions and beyond. Ethical values in financial management are paramount for maintaining the true and proper interpretation and analysis of financial data. These ethical values are meant to eliminate any form of financial discrepancies introduced in books of accounts either intentionally or accidentally. In addition, financial variations have a negative effect on all the stakeholders and the information provided by the accountants is crucial for budgeting purposes by the organizations run management (Duska, Duska & Ragatz, 2011).Moreover, financial and accounting ethics are very critical in any form of parentage or organization since it deals with actual facts and figures for institutions forecasting. The business line management makes full use of the information provided by the accounting department when reviewing the business objectives and targets and also in the vital decision making situations. In addition, accounting practitioners have full access to sensitive business information and should be handled with great care to maintain organizations trust and confidentiality (Duska, Duska & Ragatz, 2011). Therefore, it is unethical to use this information for person-to-person gain since it would lead to detrimental legal implications. For the above mentioned reasons, financial accounting ethics ascertain that managerial accountants can be trusted with sensitive business information if the enterprise is to realize