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

Ethics of a management accountant - Essay Example This 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 accounting. Ethics refers to the fundamental principles or the moral values and rules that guide human behaviors on whether they are 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 accuracy 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 organization’s top management (Duska, Duska & Ragatz, 2011). Moreover, financial and accounting ethics are very critical in any form of business or organization since it deals with actual facts and figures for institutions forecasting. The business 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 personal 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