Ethics on the Position Essay Example

Introduction

One of the most challenging things to do after graduation is to select the branch of accounting to pursue. However, acknowledging the primary objectives and the ethical challenges that may arise in each position would help in the selection. Nevertheless, many ethical issues do arise in the auditing sector.

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Responsibilities of an Auditor

An auditor evaluates and prepares financial statements to ascertain their accuracy and whether they abide by the GAAP laws and regulations. They also calculate any taxes through preparing the tax returns. Besides, auditors analyze financial operations to come up with recommendations on how the management can minimize their costs to increase revenues and profit margins (Auditor. n.d.).

Specific Ethical Issues

Careertrend outlines five ethical challenges that auditors do face. The first challenge is the failure to uphold independence. Besides, auditors are supposed to be independent of their clients. They should not have any close relationship with allegiances that can make the auditing results to be put under suspicion. Auditors should not mismanage any assets. The reason is that they will apply most of the company's assets such as computers. Therefore, they should not mismanage these assets for their gains.

Third, the auditors may be requested to multitask such as offering consulting services for their clients that would be going beyond their stipulated duties. An ethical issue may arise through this action in that it offers scrutiny due to fatigue and conflict of interest. Auditors should also disclose their results to their employers and clients. The reasons as to why full disclosure of information is appropriate are that it proves to their clients that they are receiving fair treatment and it assists in crosschecking the findings. Lastly, auditors should avoid familiarity. The reason is that if an auditor has served a client for a long time, his/her results would be subjected to criticism. According to Brown (2017), all organizations are required to change their auditors every five years.

Evaluation and Summary of IMA's Standards

The IMA or Institute of Management Accountants encourages individuals and organizations to execute, promote, and adopt practices that are in line with the standards of ethics. They do these actions by offering answers to any questions related to the changing profession. The ethics committee, CoE, maintains the statements of IMA on ethical practices. They also provide their ideas to help resolve ethical challenges at IMA (Ethics Center, n.d).

How to Take Care of an Ethical Issue

There exist five strategies in solving ethical issues within a firm. The first method is to come up with a policy that depends on the code of conducts and mission statement of a firm. Besides, a firm should offer training opportunities for workplace ethics to all employees. This action can be done through the application of techniques on how to approach and handle ethical issues. Third, a firm should create a position and employ a person who can oversee and resolve ethical issues within the organization. Fourth, the firm should make sure that the employees are well acquainted with municipal, state, and federal laws that address the responsibilities of whistleblowers. Lastly, the management should apply the firm's policies when handling and ethical issues (Mayhew, n.d).

Hypothesize What Can Happen When Nobody Follows IMA's Standards

An auditor has high chances of losing his position within a firm if he does not abide by the IMA standards. Besides, most companies will lose trust in this auditor if they get any leakages that the auditor does not follow the IMA standards. Besides, such an employee would lose his/her license and may end up being prosecuted because of their actions of not abiding by the IMA standards.

Why It Is Essential To Follow IMA's Standards

It is essential to abide by the IMA standards in that the IMA is mandated to come up with guidelines that accountants and auditors must follow. They offer accounting ethics to all people within the accounting career or want to pursue this field. The ethical principles of accounting and auditing are based on responsibilities, objectivities, and fairness (Vitez, 2018).

Methods of Internal Control

There exist many techniques to handle unethical practice within a firm. First, an organization should come up with a code of conduct. A written code of conduct assists the managers and employees in determining their actions. Besides, a boss can start by leading by example. The reason is that many bosses are always the role models of the employees and the employees will want to follow in their footsteps. Third, the firm should reinforce strict actions to those workers who break the rules. Any employee should punish if he/she breaks the code of conduct. Finally, the employees who abide by the code of ethics should be appreciated (Brookins, 2018).

Conclusion

People working in any field of accounting are required to maintain a high standard of ethics. Besides, auditors are not left behind by these standards. Moreover, abiding by the IMA standards should assist an auditor to be more ethical compared to other careers. This body makes sure that an accountant does not lose trust from another firm such as a place where an individual is employed.

References

Auditor. (n.d.). Retrieved July 8, 2018, from https://www.sokanu.com/careers/auditor/#what-does-an-auditor-do

Brookins, M. (2018). Ways to Prevent Unethical Behavior in the Workplace. Retrieved July 8, 2018, from http://smallbusiness.chron.com/ways-prevent-unethical-behavior-workplace-21344.html

Brown, T. (2017, July 05). What is an Ethical Dilemma in Auditing? Retrieved July 8, 2018, from https://careertrend.com/facts-7612850-ethical-dilemma-auditing.html

Ethics Center. (n.d.). Retrieved March 26, 2018, from https://www.imanet.org/career-resources/ethics-center?ssopc=1

Mayhew, R. (n.d.). How to Handle Ethical Issues in the Workplace. Retrieved July 8, 2018, from http://smallbusiness.chron.com/handle-ethical-issues-workplace-10157.html

Vitez, O. (2018). About Ethics in Managerial Accounting. Retrieved July 8, 2018, from http://smallbusiness.chron.com/ethics-managerial-accounting-3737.html