Accounting is a tool, which is responsible for showing the financial situation of a company, this in order to improve their performance through strategies, which speed up the fulfillment of the company’s goals. It is used to manage the profits and expenses of a company, in addition to this it helps with matters related to tax provisions, getting involved in the taxes that a company must pay and others.
On the other hand, ethics is a social creation which has as its purpose regulate human behavior, towards what is considered as good and bad. However, there are situations, where it is confusing to know if it is being done right or wrong, then that is where ethical dilemmas come in.
In the case of accounting, there are several ethical dilemmas, which arise during the practice of the profession. Also, ethical dilemmas in accounting, generally fall into crimes punishable by lawThese for various breaches of the rules, which may include relationships with organized crime groups, or bribes by a businessman. Here are some examples of ethical dilemmas faced by an accountant.
Most common ethical problems or dilemmas in professional accountants
These crimes are largely related to tax evasion and hiding income from the state or its workers. We will see how these illegal and non-ethical practices are applied.
Collaborate with tax evasion
This ethical dilemma is very common for accountants, some clients want to evade as much tax as possible, thus hiding the true income of the company, or changing their company name, which can further reduce the payment of taxes for the Treasury. . This despite the fact that the responsibility of an accountant is in keep a company’s documents in order.
Commit fraud against a customer
The practice consists of withholding money by a client and delaying payments to suppliers. It is done with a purely personal purpose, affecting the company in the fulfillment of its goals, all because the money was entrusted to this immoral accountant.
Lend your professional identity
There are accountants who usually lend their professional identity. What does it consist of? in signing an income statement that is not ours, it is practical to be discovered, affects only the signing accountant, since his signature is there and he does not know the real conditions of the work, putting himself at risk.
Is it is not an exclusive practice of the professionHowever, it is presented to the accountants of certain types of businesses. This practice consists of making money, coming from illegal activities, look as if it were made by some legal income. This benefits organized crime, and can be introduced to professional accountants.
How to avoid these professional ethics problems in accounting?
Having already seen some of the unethical practices, by a professional accountant, we must see how to avoid them. Before talking about how to avoid them, it should be known that these activities are punishable by law; resulting in paying fines, revocation of the professional license, or even imprisonment for those activities. Accountants’ activities are supervised by the local college of accountants, in this case being AECA.
As a solution there are organizations that are in charge of giving ethics guidance to accountantsIt is even reflected in the business plan of the companies.
In order to prevent any illegal practice from being incurredl, since it also detracts from the company’s ethics. These practices are still common, but every effort is made to educate accountants with values and in turn, showing the consequences that unethical practices can bring.