An Analysis of Code of Ethics and its Impact on Accounting Perception

This essay examines the critical role of the code of ethics in shaping public perception of the accounting profession. It explores how ethical standards, professional conduct, and the handling of financial information influence public trust. The essay discusses the impact of unethical behavior, such as fraud and embezzlement, on the reputation of accountants and the need for disciplinary measures. It also highlights the importance of ethical education in training programs and the role of regulatory bodies like APESB in establishing and enforcing ethical guidelines. Furthermore, the essay analyzes how media portrayals and the actions of accounting firms affect public trust and suggests strategies for restoring confidence, including transparent reporting, independent audits, and continuous updates to ethical regulations. The author emphasizes the need for accountants to uphold integrity, professionalism, and confidentiality to regain public trust and maintain the profession's credibility.

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Code of Ethics Impacts on Perception of Accounting
Name
Institution

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Code of Ethics Impacts on Perception of Accounting
Globally, the accounting profession has been faced with the challenge of distrust from the public
because of the sensitive role they play within organizations of handling the finances and the records
pertaining to them. The situation arises as a result of the numerous cases that have been mentioned
either at the institution levels or in the mainstream media about embezzlement of funds. In response to
the increase of the problem, learning institutions are accorded the responsibility of introducing the
proper ethics to students during their training programs. The code of ethics is a document that has been
audited and found acceptable by bodies that govern this sector in the country. In order for the members
of the public to develop trust towards the profession, they should carry out disciplinary measures
against the culprits of these crimes.
APESB (2013) outlines the correct procedure provided for individuals within the field to carry
out in case they realize there are persons practicing unethical activities. In that respect, there are
provisions within institutions to curb the vice such that there is designated authority to whom these
reports can be filed and they are mandated with the duty to solve them. However, some institutions
may not have anticipated possibilities of the problems taking place in their premises, in which case the
person with a complaint ought to seek legal advice before taking action (APESB, 2013). In a situation
where the authority does not solve the problem to the satisfaction of the reporter or they feel no action
was taken, as a responsible employee they should not leave it at that. The provision is therefore to
consider the consequences one will be exposing themselves to before taking alternative action (APESB,
2013). In such case, disciplinary bodies out of the institution or filling a complaint with the court of law
would be advisable with the full knowledge that they are fully responsible for the same.
According to McDowall and Jackling (2010), the public perception of the accounting profession is
generally negative including in higher learning institutions. In colleges, the students carry their pre-
perceived picture hence even when they are taught what is expected they treat it as a requirement to
respond to exam papers rather than adopt and integrate into their professional activities (McDowall &
Jackling, 2010). Apparently, if the participants in the field lack faith in the industry, then convincing the
general public trust them is even harder. Therefore, they should develop a proper image in regard to
this field which in turn influences the external environment to change their view on them. In addition,
they owe it to the field to portray the profession in a positive manner since people’s judgment is guided
by the things they see or hear about the subject of their interest.

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Brooks and Dunn (2011) insist that in order to fix a problem, it must be identified and the inlets
allowing it in understood and blocked. In that case, tutors should not casually produce notes on this
sensitive topic but rather they should introduce class discussions that relate to real-life problems
experienced by those occupying important offices that they are training to join in the future. The
example given is that whereby there was a case of fraud or corruption, there ought to be a
brainstorming session where learners suggest an alternative course of action that if they were in that
position they would utilize to handle the cases (Brooks & Dunn, 2011). Teaching these virtual in young
professionals is the right strategy to employ in eradicating the challenges in the future and
consequently, improve trust with the public when they realize the change in regime.
Rezaee (2004) implied that the people’s trust in accountants is eroded due to repeated cases of
published financial statements that end up being flawed when situations contrary to the reports arise.
Therefore, he claimed that the responsibility of such vices should not be carried by one individual since
the code of conduct ought to be upheld by all stakeholders responsible for that type of information at
the various stages. These include the control bodies, law-makers, as well as the business executive
officers who might have influenced the type of reports they wanted to safeguard the institution
reputations Rezaee (2004). As far as the proper code of ethics that govern activities of the professionals
is concerned, all issues have been addressed. However, the will and clearly defined course of action or
means of auditing offenders and coming up with a proper determination that they participated in the
vice in order to accord the right penalty is often missing.
The code has a properly laid out course of action such that where complaints arise about fraud
towards a member of the public there are procedures to solve them (APESB, 2013). As such, if the
members of the public are provided with the information that there are procedures they can follow to
reverse an injustice performed towards them then their faith in the system might be rejuvenated. In
addition, where a business has no existing problem-solving mechanisms, the code provides for an
alternative method in the quest to leave no gaps in the systems. For instance, on matters relating to
taxation and compliance to other government revenue requirements, they are addressed in such a way
that despite possible attempt to evade, they are made to follow right procedures. In addition, the law
provides for proper response towards other parties (APESB, 2013).
According to APESB (2013), there are various fundamental principles participants must be
followed for the proper running of an entity. However, their application should be guided by the specific
case one is handling to ensure the right thing is done but at the same time avoid attracting unnecessary

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attention towards the business or blow the issue out of proportion since a bad reputation is not easy to
recover from once the information gets in the public domain. These values include but are not limited to
upholding integrity at all times for the workers at the work-place (APESB, 2013). Additionally,
professionalism and confidentiality in regard to all activities carried out while carrying out everyday
activities are recommended. When professionals display these virtual, the general public faith in the
institutions is regained since the loss of the same was as a result of failure to display goodwill in the
manner in which they have been perceived to conduct their activities.
Carnegie and Napier (2010) argued that accounting profession has been at the center of
criticism due to a few writers who produced materials suggesting that the bigger percentage of
individuals in this field are corrupt. He also claimed that the plight is defined by a few cases reported to
the public through the media and in these cases the accountants were not given a chance to present
their side of the story (Camergie and Napier, 2010). As such, if the narratives were to change and apply
higher standards of responsibility to the media where defamatory unverified stories would be costly to
air, then the name of the profession would be restored. In addition, the public inquisitiveness to ensure
they only believe the credible sources and avoid stereotyping a whole field due to a few guilty players
would be a substantial contribution in acquiring back the dignity.
Pierce (2007) claimed that for the people’s perception of the accountants and the entire
occupation, they would be required to offer entirely trust-worthy information. Apparently, the capital
market which is very popular with investors requires participants to be provided with the real market
figures which will properly guide their investment decision. In such a case, their confidence will most
likely be restored and let the perception of untrustworthy haunting over them disappear (Pierce 2007).
Additionally, the firms facing criticism should put into place proper disciplinary action towards the
culprits to warn others employees that may be tempted to engage in the vice. Consequently, the action
will play a vital role in giving the public hope that these practices are unacceptable within the field
(Pierce 2007). On the contrary, in publicized cases where the participants keep their positions and the
external population does not get to hear about how the matters were resolved may make them brand
these institutions as corruption-tolerant.
Pierce (2007) also indicate that updating the regulations governing the field over time as new
challenges arise is one method of managing the perception people have on the entire occupation.
Apparently, the public needs to feel that their concerns are being attended by the oversight teams and
are keeping up to date with the current trends in order to curb them before they get established. As

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such, the public confidence in the profession is dependent the manner in which institutions respond to
issues that they are confronted with as well as how they conduct themselves in their day-to-day
engagements. In addition, where unfounded information has been spread, it is wise to carry out
independent audits by other reputable firms and let the reports out into the public domain to avoid a
case where losses are encountered due to the negative publicity (Pierce, 2007).

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References
APESB (2013). www.apesb.org.au/uploads/standards/apesb_standards/standardc1.pdf
Brooks, L. J., & Dunn, P. (2011). Business & professional ethics. Cengage Learning.
Carnegie, G.D., Napier, C.J. (2010). Traditional accountants and business professionals: Portraying the
accountant profession after Enron. Accounting, Organizations and Society, 35(3), 360-376.
McDowall, T., & Jackling, B. (2010). Attitudes towards the accounting profession: an Australian
perspective. Asian Review of Accounting, 18(1), 30-49.
Pierce, A., (2007). Ethics and professional accounting firm: A literature review. Institute of Chartered
Accountants of Scotland.
Rezaee, Z. (2004). Restoring public trust in the accounting profession by developing anti-fraud
education, programs, and auditing. Managerial Auditing Journal, 19(1), 134-148.