Accounting Professional Accountants

Question: Discuss about the Accountingfor Professional Accountants. Answer: Introduction Accounting is the process of recording and analyzing the various financial transactions of the business organization (DRURY, 2013). The profession of accounting is run by some specific set of rules and principles. All the accountants need to comply with these fundamental accounting principles. In this regard, APES 110 Code of Ethics for Professional Accountants is one of the most important set of principles in accounting. This section states that all the accountants need to have integrity. It implies that the accountants need to be straightforward and honest to their profession (Carey, 2015). Purpose of APES 110 Code of Ethics for Professional Accountants APES 110 are one of the major codes of principle in the process of accounting. Accounting Professional and Ethical Standard Board, commonly known as APESB, has issued the principles of APES 110. APESB is an independent accounting body of Australia in the year of 2006. The main role of APESB is to develop and issue various kinds of ethical standards in the process of accounting in order to save the interests of public. The development of APES 110 is considered as one of the major initiatives of APESB. In addition, the International Ethical Standard Board for Accountants, commonly known as IESBA is also involved in the development of APES 110. The main purpose of this code is to make the accountants of Australia and others comply with the various kinds of fundamental principles of accounting (apesb.org.au, 2017). As per APES 110, all the accountants must comply with all the accounting rules and principles; otherwise, they will be prevented from doing all kinds of accounting works. It i s expected that the accountants must guided by the spirit of this code. In Australia, it is expected that all the accountants must comply with the fundamental principles of APES 110 at the time of providing any kind of professional services (cpaaustralia.com.au, 2017). The accountants outside Australia also have to comply with the rules and regulation of APES 110, as per the codes of APES 110. However, in this case, they also have to comply with the local accounting rules and regulations. It is not the purpose of APES 110 to detract the accountants from any kind of responsibilities that may not be imposed by the law or regulation. In the process of auditing, the principles of APES 110 have legal enforceability, as all the accountants must comply with the principles of APES 110. Another major purpose of APES 110 is to impose the principles of integrity on the professional accountants. It is stated in APES 110, the accountants must not be associated with any kinds of manipulation of accounting information of any business organization. There are instances all over the world where the accountants have been found involved in different kinds of accounting fraudulent. Hence, one of the major purposes of APES 110 is to eradicate these kinds of accounting s candals from this profession. In case of any member of accounting is found to breach the codes of APES 110, they will be withdrawn from the accounting profession (CHRIST BURRITT, 2016). Ethical Approach to the Problem The Laura Nash model of ethical decision-making is one of the effective models to make decisions in major critical situations. In this model of decision-making, twelve questions are used to get to the optimal decision (ryerson.ca, 2017). This model will be a suitable one in the provided case study. As per the provided case study, the major effects of volatile economic situation on the business operations of the organization are not included in the agenda for the meeting of 2009. Apart from this, the required audit operation on the loan portfolio is also not included in the meeting agenda. However, the CEO of the organization has provide assurance that there is not any kind of important issues regarding the financial crisis and audit on loan portfolio that needs to be addressed in the meeting agenda. This is not the case as these are the major issues. In addition, the member of audit committee is suspecting that some of the financial figures have been manipulated. In this complex ethi cal dilemma, the audit member can take suitable decisions by using the twelve questions of Laura Nash model. In this situation, it is needed to address these major issues in front of the management and auditor committee of the company. First, the audit associate needs to accurately define these major issues in from of everyone in order to make them aware of the negative effects of the problems (Cohen, 2013). In this case, proper evidences, data need to be presented to everyone to prove the matter. The management needs to be understood that the audit associate is doing this for the betterment of the company. The intention of the audit associate behind this process of decision-making is to save the organization from the potential financial hazards. This intention needs to be compared with the problem results. The expected result of the present situation needs to be presented to the management to make them aware about the potential danger of the company. On the other hand, it need to be shown to the management that this decision is not going to hurt anyone in the organization as it is good for everyone (Tsalikis Fritzsche, 2013). In addition, the audit associate needs to make the management understand that he is doing this irrespective of his position in the organization and he has no self involved in this decision making process. As per the Laura Nash model, this is the proper ethical way to make decision about the problems. Conclusion As per the above discussion, it can be seen that integrity is one of the major factors in the accounting profession, as the accountants need to be honest and straightforward. In this regard, APES 110 article contains all the fundamental principles of accounting that all the accountants must comply. On the other hand, it can also be seen that one can get to a proper ethical decision with the help of the twelve questions of Laura Nash Model. Hence, it can be concluded that integrity and ethics are two of the major pillars of accounting that all the accountants must follow. References An overview of APES 110 Code of Ethics. (2017).Cpaaustralia.com.au. Retrieved 18 April 2017, from https://www.cpaaustralia.com.au/professional-resources/ethics/apes/overview APES 110 Code of Ethics for Professional Accountants. (2017).apesb.org.au. Retrieved 18 April 2017, from https://www.apesb.org.au/uploads/standards/apesb_standards/standard1.pdf Carey, P. J. (2015). External accountants business advice and SME performance.Pacific Accounting Review,27(2), 166-188. CHRIST, K., BURRITT, R. (2016). Professional accounting bodies: Scoping options for sustainability.RELEVANCE AND PROFESSIONAL ASSOCIATIONS IN 2026. Cohen, S. (2013). Promoting ethical judgment in an organisational context.Journal of business ethics,117(3), 513-523. DRURY, C. M. (2013).Management and cost accounting. Springer. Laura Nash Ethics without the Sermon, Howard Business Review 59. (2017).ryerson.ca. Retrieved 18 April 2017, from https://www.ryerson.ca/content/dam/ethicsnetwork/downloads/model_B.pdf Tsalikis, J., Fritzsche, D. J. (2013). Business ethics: A literature review with a focus on marketing ethics. InCitation Classics from the Journal of Business Ethics(pp. 337-404). Springer Netherlands.