Ethical Practices in Accounting Quiz

Ethics in accounting is important to avoid financial and legal dilemmas caused by misrepresentation of financial statements, minimize errors, and generate suitable information for the users of financial statements.

The major ethical drivers in accounting are appropriate practice and good internal control systems. These drivers help accountants identify and measure financial information accurately, prevent fraud, and ensure compliance with accounting standards.

Unethical behavior in accounting can lead to increased criminal and fraud activities, damage the reputation of a business, and affect the decision-making process of stakeholders. It can also shake investor confidence in the industry.

<p>The Sarbanes-Oxley Act was introduced to prevent financial statement fraud and promote ethical behavior in accounting. It aims to instill confidence in the reliability and accuracy of financial disclosures.</p> Signup and view all the answers

<p>Both the government and the private sector focus on instilling ethical practices in accounting professionals through regulations, aiming to prevent fraud and ensure compliance with accounting standards.</p> Signup and view all the answers