In the case of Enron, the auditors Arthur Anderson were shown to be complicit in the misrepresentation done by the company, which hit their reputation hard as well as causing massive losses to investors and shareholders to the amount of $25 billion as well as a loss on almost 85000 jobs in the industry (Alexander 2004). These are the reasons why ethics are considered to be a crucial part of the accounting industry so that such catastrophic scandals could be avoided. The industry has already taken numerous steps in this direction.
Accountancy bodies such as the American Institute of Certified Public Accountants took steps to include ethical principles to adhere to which included responsibilities to clients and colleagues as well as independence, objectivity and integrity. Following such principles was a requirement for the members and candidates as relevant action could be taken against those who broke the convention. The Association of Chartered Certified Accountants also included such frameworks for the members which illustrates the almost global focus of such needs by accountancy bodies. The body has further introduced an ethics module in its trainings which is claimed to be significant in terms of lifting the ethical standards in the industry (Love 2008).
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.