Importance of Ethics in Accounting and Auditing - Applied Business Research

Running head: APPLIED BUSINESS RESEARCH
APPLIED BUSINESS RESEARCH
Name of the Student
Name of the University
Authors Note

1APPLIED BUSINESS RESEARCH
Table of Contents
1 .Research Title: Accounting and Auditing ethics.........................................................................2
2 Partner organization (if applicable): NA......................................................................................2
3. Background of research...............................................................................................................2
4. Research problem........................................................................................................................3
5. Research Objectives.....................................................................................................................3
6. Research Questions.....................................................................................................................4
7. Literature (source and keywords)................................................................................................4
8.. Data collection plan....................................................................................................................5
8. Ethical Consideration...................................................................................................................5
References........................................................................................................................................6

2APPLIED BUSINESS RESEARCH
1 .Research Title: Accounting and Auditing ethics
2 Partner organization (if applicable): NA
3. Background of research
The purpose of the research is to examine the role of ethics in accounting and auditing as
well as develop ethical analysis in order to emphasize the importance of ethical decision- making
during the process of auditing. Audit in financial accounting has been categorized by self-
governing valuation of justice to which financial statements of the organization are made and
presented by supervisors (Kung and Li Huang 2013). One of the crucial activities of the
accountants in an organization is auditing. They design audits in order to assure accountability
and reliability in few areas, which includes- legal compliance, accounting systems. In this
respect, one of the vital things for the auditor is ethics as they are responsible for inspecting
accounting practices in the company. There are several ethical threats that are connected with
this auditing profession, which involves- self- review threats, self- interest threats, familiarity
threats, advocacy threats, management threats and so on. As a result of such ethical threats,
numerous ethical dilemmas occurs within the organization. Recent evidences reflect that
numerous ethical issues occur for most of the multinational enterprises owing to their technical
regulations and varied value systems (Brown-Liburd, Cohen and Trompeter 2013). For instance,
Eron is one of the multinational enterprises that went bankruptcy owing to financial fraud,
registration of false claims in the financial statements, false accounts and sell of projects at loss
to the bureaucratic enterprises. Ethical auditing however enables these companies to establish
proper guidelines relating to limits of behavior (Stefaniak, Houston and Cornell 2012). It also
helps to determine both external and internal consistency of value systems of the companies.
Moreover, most of the organizations implements various approaches to carry out ethical auditing