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ETHICAL ISSUES OF FINANCIAL REPORTING

Abstract

Abstract: In Financial reporting it ensure that all users of financial systems must know the generally accepted accounting
principles (GAAP). In business world accurate accounting plays a crucial role. Ethical financial reporting and accounting
practices corresponds to basic human requirements. It creates credibility with public and employees. Ethics and accounting
exist to protect the public from unscrupulous corporation. Most of the professions accountants hide or manipulate the
information. Most accounting scandals have taken place on fraudulent financial reporting. It means that the management of
company presents the misstatement of the financial statements. Normally, this is carried out with the intention of misleading
investors and maintaining the company's share price in the present scenario business ethics has its own significance which
helps to come from the global financial scandals. There is a requirement a direct ethnical guideline which spread a
awareness to protecting from this corporate scandal that had taken place in different areas in different countries which are
very harmful to the economy and our society. Due to the necessities of Information supplied by an accountant and manager
should observe certain professional ethical standards, financial management adequacy, quality of audit, corporate ethics,
embracing ethics etc. This paper explained the meaning of ethics, causes of ethical issues relating to accounting and
financial reporting, and steps required to solve those issues.
Keywords: Financial reporting, accounting, ethical issues and business.

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