BRM assignment

Done by omar gamal Tawfik

291800293
Why ethics is important ?

The business ethics of a company also help it attract quality employees. Businesses that care
about their employees on all levels and treat them with the highest ethical standards are
appealing to job seekers. Furthermore, if you work for a company that values its employees,
you are more likely to work in success and stay with the company for a long time.

From accounting and auditing ethics is

1-Trustworthiness and unbiased

for clients , customers and employees through honesty, transparency and reliability. Employees
should feel they can trust the business to keep to the terms of their employment. Clients and
customers should be able to trust the business with their money, data, contractual obligations and
confidential information. Being trustworthy encourages people to do business with you and helps
you maintain a positive reputation.

2- Objectivity and Independence

Objectivity and independence are critical ethical principles in the accounting profession.
Accountants must avoid conflicts of interest and other doubtful contractual relationships while
providing accounting services. Failure to remain impartial and independent can impair an
accountant's ability to provide an honest opinion about a company's financial information.

The accounting industry typically restricts or reduces the number of services that public
accounting companies or individual certified public accountants (CPAs) can provide to their
clients. Accounting services include general accounting, auditing, taxation, and management
consulting. Accountants who provide several of these services to a client can jeopardise their
objectivity and independence.

For example, individuals who handle general accounting functions and then audit this
information are essentially reviewing their own work. This situation may allow an accountant to
hide a company's negative financial information.

What is the problem may be faced if these ethics is not available in accounting?
1- Self-interest threat exists if the auditor holds a direct or indirect financial interest in the
company or depends on the client for a major fee that is outstanding.
2- self-review threat exists if the auditor is auditing his own work or work that is done by others in
the same firm.
3- advocacy threat exists if the auditor is involved in promoting the client, to the point where their
objectivity is potentially compromised.
 BRM assignment
Done by omar gamal Tawfik
291800293
4- intimidation threat exists if the auditor is intimidated by management or its directors to the point that
they are deterred from acting objectively.
What should be done for avoiding these problem ?
When confronted with such dilemmas, an accountant needs to have the wherewithal to
make difficult yet principled decisions. If you find you’re struggling with ethics in
accounting or if you question the ethical implications of something in your job, here are
four steps you can take
1- Identify potential legal issues
2- Take an outsider’s view
3- Identify the parties affected
4- The interference of artificial intelligence which could be good solution and give
ubaised opinion and trust

Conclusion
For accountants and auditors to honor these imposed obligations, the
audit must incorporate both a rule-based assessment of the financial
condition of an audited entity and a principle-based evaluation of the
financial health of a firm as an ongoing business entity and as a potential
investment opportunity. The fundamental duties implicit in that role
combine technical acumen and professionalism essential to achieve
precision, clarity in providing enough information to insure transparency
regarding the audited entity’s financial condition, and completeness and
independence in carrying out an audit comprehensive enough to insure the
integrity of the audit report. The role of the audit function is ‘‘covenantal’’
to the degree that the audit profession represents itself as a guardian of
public interest

To solve this problem we need secondary data and qualitative

because it is not an a statistical data and it is difficult to trace