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Presented by- Tejal Gawand

Presented to± Mrs.Neha Chouhan
TYPES AND ROLE OF ACCONTANTS

h Accountants employed by an organization

‡ Internal Management accountant
‡ Financial accountants

h Accountants in professional practice

‡ The auditor
‡ Accountants in related services
 Vhat are ethics?

' Derived from the Ancient Greek word µethikos¶ means customs and
habits,

' Introduced by µLuca Pacioli¶

' Choosing honest & fair actions

' DEFINITION: A major branch of philosophy which is the study of

values and customs of a person or group and covers the analysis and
employment of concepts such as right and wrong, good and evil and
do's and don'ts.

' It is a belief that each member of a group bears some responsibility

for the well being of other members. E.g. Bonus

' Formal statement of the organization's values relating to the

profession and practice
Role of Ethics

' Provides fair and accurate reporting of the financial

position of a business

' Increase public¶s trust on the organization

' Maintains level of self discipline

Ethical issues in accounting

' Issues ' Possible reasons

  False information  
  Hiding cash  
  Overbilling clients
  Delaying vendor payments  
  Concealed liabilities and
expenses  
  Reporting false income
  Fraudulent asset valuation  
  Improper or fraudulent
commission
  Bribery
  Inside trading
Aggressive financial targets
Dominations by higher
authority
Pressure to reduce tax
liabilities
Inadequate monitoring of
significant controls
Veak corporate ethics
 Burning examples :

 Enron
 Satyam computers

Raju confessed that Satyam's balance sheet of 30 September 2008

contained:
' inflated figures for cash and bank balances of 5,040 crore (US$ 1.14
billion) as against 5,361 crore (US$ 1.22 billion) reflected in the
books.
' an accrued interest of 376 crore (US$ 85.35 million) which was non-
existent.
' an understated liability of 1,230 crore (US$ 279.21 million) on
account of funds was arranged by himself.
' an overstated debtors' position of 490 crore (US$ 111.23 million)
(as against 2,651 crore (US$ 601.78 million) in the books
Enforcement of ethics

' American Institute of Certified Professional

Accountants (AICPA) for the Certified
Professional Accountants
' Institute of Internal Auditors (IIA) for the
Certified Internal Auditors
' Institute of Management Accountants (IMA)
for certified management accountant
' Government regulatory bodies such as ±
SEC, FASB etc.
Fundamental principles

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Conclusion :

³Vhen accountants (including auditors) fail to

provide investors with reliable information
that is relevant to their capital allocation
decisions, then investors and all citizens with
stakes in the success of the economic
system suffer.´
Thank You