Many people have the opinion that accounting has been developed in recent years. But from the Puranas we see that Chitragupta maintained accounts for qualities and vices. History gives us many examples of kingdoms having finance ministers in charge of the financial transactions like cash transactions, collection and maintaining records of taxes levied on the subjects of the kingdoms, etc. If we come across the chapter "The business of keeping of Accounts in the Office of Accounts" from the book named Arthashastra written by Kautilya, Minister of king Chandragupta, it becomes clear that Accountancy was practiced in India 23 centuries ago.
Luco Pacioli invented the modern method of accounting which is based on the principles of double entry system followed now and was first published in 1494 at Venice in Italy.
According to definition, "accounting ethics is primarily a field of applied ethics, the study of moral values and judgements as they apply to accountancy. It is an example of professional ethics."
Following the code of ethics in accounting is of vital importance, not only to accounting professionals but also to those who rely on their services. People using the services of accounting professionals like Certified Public Accountants (CPA) and other professionals for financial decision-making and compilation of accounts, expect them to be exceedingly reliable, competent, objective and well-qualified with a high degree of professional integrity and possessing an untarnished reputation.
In the present business scenario, the existing system of accounting has made a strong presence. The key to success of any business depends on the correct and timely financial decisions taken with the help of the accounting manager or financial officers. Owners can know whether they have made profitable investment. The cost accountant shows how to control the cost of production. Government can get data for tax computation and granting licence permission. So accountants provide information to different individuals and organizations, according to their specific concerns.
Accountants are personally responsible to deliver trust in business to all those who are concerned, whether they are stakeholders or investors or employees. Investors and other users of financial statements rely on the financial information. Most of them do not have access to any other source of information. They trust the management, the auditors, and the analysts. Trust is the foundation of all relationships, whether at personal level or macro level. The economic growth of a nation and stability in market system is possible only when the trust in the accountant is not jeopardized. |
