Introduction
For all the organizations to achieve it maximum productivity, and then they have to be keen on employing. The quality of the accountant in the standard Code of Ethics is very vital to command the respect and self-confidence of the overall public. Commissioned Accountants in the service of the affairs of others have tasks and responsibilities to those who depend on their work. The client, before appealing the service of professional needs to be guaranteed, (i) that he has the good qualities and (ii) that he is an individual of charm and honesty. The indication is accessible to the client in the form of documentation that the Commissioned Accountant has experienced, the training and delivered the suitable examination in accountancy and as reputes the second. He would have a declaration only if the professional body to which he goes has adopted a code of the professional morals for its members. There are also some red flags that all the employers need to check to ensure that the candidate selected fits the position. These red flags are also found in the code of standards that pertains to the accountants.
Background
Problem
Financial statements of an organization portray the wholesome financial condition of the enterprise for a specific period / at a particular date. The info in these statements is of dynamic significance for a large segment of the society, which deals with that innovativeness. It may be merchants of material, customers, stakeholders, Banks, Financial Organizations, Insurers, Government, Tax Authorities, workforces, agents and even their participants. Keeping in the significance of these statements (Singleton 87).and the significant unit of the society who use this intelligence for appealing many vibrant choices. It is vital that these statements are established by some person who is conversant in this field so that the fairness, truth, reliability and trustworthiness of the info is guaranteed to a great degree.
His function is done by Chartered Accountants internationally (Singleton 87). It has been practical that there have been a number of situations in banks and financial organizations where due to the mistaken/confusing advice offered by the respective Chartered Accountants. Borrowable accounts have had to face quick humanity subsequent in the loss for the bank. In most cases, it has caused vigilant cases due to allegations of gross being credited to the concerned Bank officials’ accountabilities and responsibilities to those who depend on their work. The International Ethics Standards Board for Accountants, (ISBA) is the standard-setting body that advances an internationally suitable Code of Ethics for Professional Accountants (the Code). The impartial of the ISBA, as drawn in its Terms of Reference, is to aid the public consideration by setting high-quality ethics principles for professional accountants (Singleton 87). The IESBA’s long-term objective is merging of the Code's ethical morals for professional accountants, plus auditor independence standards, with those delivered by controllers and national standard setters. Junction to a lone set of values can augment the excellence and steadiness of facilities provided by professional accountants through the world and can recover the competence of global capital markets.
It includes the involvement of the PIOB and the IESBA’s Consultative Advisory Group (CAG), which give public opinion input into the building of the IESBA’s standards and guidance.
Past and Current Efforts to Deal with the Issue
Dealing with the problem of poor ethics, the standards of accountants need to be applied. A distinctive mark of the accountancy profession is its reception of the accountability to perform in the public concern (Aicpa 98). Hence, a professional accountant’s accountability is not wholly to fulfill the needs of a discrete client or employer. In acting in the public interest, a professional accountant should understand and comply with the ethical requirements of this Code. kMost companies or organizations depend on the finances available in their accounts for running the day to day activities. The accountants make the major department that deals with the money of all the organization or the company. A professional accountant must possess and comply with the following fundamental principles according to the standard code of the accountan (Aicpa 98):
(a) Integrity
A professional accountant must be frank and honest in all professional and commercial relationships. An accountant should not be related with reports, returns, communications or other material where they trust that the information: Comprises importantly false or deceptive statement and covers statements or info furnished recklessly. Omitting or confusing info is obligatory to be comprised where such omission or anonymity would be deceptive.
Objectivity
A professional accountant must not permit bias, the battle of attention or unwarranted inspiration of others to supersede professional or business decisions.
(c) Professional Competence and Due Care
A professional accountant has a permanent duty to preserve professional acquaintance and skill at the level need to guarantee that a customer or employer obtains experienced professional facility based on current expansions in practice, lawmaking, and techniques. A professional accountant should act meticulously and in harmony with appropriate technical and professional values when giving professional service (Aicpa 98). Codes of conduct delivered by professional figures, and commercial codes dispensed by business organizations, define accountabilities in terms of duties, and may deliver guidance on the more common exclusions that apply. As it is unbearable to describe the suitable answer to every single human communication, these codes can only attend assets of smallest standards. They rely on the practitioners to realize what is right or wrong.
The capable professional service needs the implementation of the sound decision in relating professional information and skill in the presentation of such service.
The upkeep of professional competence needs an ongoing consciousness and a considerate of applicable practical professional and business growths. The ongoing professional enlargement develops and upholds the competencies that allow a professional accountant to achieve capably within the professional surroundings (Aicpa 98).
Attentiveness includes the accountability to act in agreement with the necessities of an assignment, prudently, thoroughly and on a timely basis. A professional accountant must take steps to guarantee that those working under the professional accountant’s consultant in a professional size have suitable exercise and supervision (Aicpa 98).
Where suitable, a professional accountant must make customers, employers or other users of the professional services attentive of limits characteristic of the facilities to evade the misunderstanding of an appearance of opinion as a declaration of fact (Topeka 45).
(d) Confidentiality
A professional accountant must respect the privacy of information learned as an outcome of professional and commercial relations. He must not disclose any such info to third parties deprived of proper and exact expert unless there is a lawful or professional right or duty to reveal. Intimate information learned as a result of professional and business relations must not be used for the personal benefit of the professional accountant or third parties (Topeka 45).
A professional accountant must uphold privacy even in a communal setting. He should be attentive to the likelihood of accidental revelation, particularly in circumstances connecting long suggestion with a business subordinate or a close or instant family member (Topeka 45). The other responsibility is maintaining the privacy of information exposed by a prospective customer or employer. He considers the need to uphold the privacy of information within the firm or employing organization.
A professional accountant must take all sensible steps to guarantee that supervising team under his regulations and persons from whom assistance and assistance are found respect the professional accountant’s duty of confidentiality.
The need to follow the requirements of confidentiality remains even after the end of relations amid a professional accountant and a customer or employer. When a professional accountant changes the employment or obtains a new customer, the professional accountant is enabled to use prior knowledge. The professional accountant must not, conversely, use or reveal any intimate info either acquired or established as a consequence of a professional or commercial association.
In determining whether to reveal confidential information, professional accountants must reflect the subsequent points like the interests of all parties. Third parties whose benefits may be pretentious might be damaged if the client or employer agrees to the exposé of info.
Whether all the pertinent info is known and validated, to the degree it is realistic; when the condition includes unconfirmed facts, imperfect info or unconfirmed deductions( Benston 56). The type of communication that is predictable and to whom it is addressed.to be specific, professional accountants need to be satisfied that the parties to whom the communication is addressed are suitable recipients.
(e) Professional Behavior
A professional accountant must fulfill with pertinent laws and rules and must dodge any action that discredits the profession. In marketing and endorsing themselves and their work, professional accountants must not bring the profession into disrespect. Professional accountants must be honest and honest and should not create exaggerated claims or statements for the services they can offer. The qualities they possess, or skill they have gained ( Benston 56).
(b) Make good references or bad comparisons to the work of others.
Identification of Red Flags during hiring
In order to know some Red Flags, the company should deliberate the types of accountants that they require. They must have their full details including photos to avoid hiring the wrong person. its good methods for recruits to provide access to their accounts. Although some Red Flags can appear harmless on their own, they may signal identity when paired with one or more others. The resulting are appropriate Red Flags, in every of the recorded groups, which employees must be conscious of and meticulous in monitoring for:
Alerts - Notifications or warnings from a consumer recording agency plus fraud alerts, credit freezes, or official notice of address inconsistencies. Suspicious Documents - Like those appearing to be forged or altered, or where the photo identification is not same to that of owner, or an application that appears to have been cut up, re-assembled and photocopied ( Benston 56).
Suspicious Personal Identifying Information
Examples are problems in address, Security Number, or other data on file; an address that is a mail-drop, or is invalid; a phone number that is same to be a pager or dialling service; personal data of others still on file; and/or failure to give all needed information.
Suspicious Account Activity – such as material variations in payment designs, notification that the account holder is not getting emailed statement, or that the account has illegal charges. Alerts from Others - announcement to company from a client or victim of identity theft, law implementation authorities, or other bodies about promising identity theft in linking with enclosed accounts (Bragg 123)
Detecting Red Flags
In order to notice any of the Red Flags identified, the associated with the opening of a new account the company needs assured identifying info such as name, date of birth, suburban or business address, driver's license since customer's identity is vital. For emergency loans, desires must be made in person by giving the photo. For existing Account- Verify the documentation of customers if they bid information, the validity and changes in banking info used for billing.
Responding to Red Flags:
Preventing and Mitigating Identity Theft
In the event company personnel notice any identified Red Flags, such personnel need to take all suitable steps to reply to and alleviate identity. It is subject to the nature and degree of risk modeled by the Red Flag. Informing the Program Periodically will be reviewed and updated to reflect changes in risks and the soundness of company from identity and theft (Sampsell 97).
There are many issues involved in the process of recruiting accountants as described in the study. The problems are diverse since the field of accounts requires high integrity. Therefore, it is mandatory for human resource managers to ensure the process of accountants is transparent and that the right individuals are selected. On the other hand, the selected individuals ought to be well trained with the desired academic qualifications (Bragg 123).
In essence, there have been errors in the process of recruiting accountants with ethical standards. Most potential candidates who seek employment opportunities usually come well prepared thus; making it hard for recruiters to choose the right accountants. Indeed, choosing correct candidate is one of the significant decisions. A good decision has several positive implications for the company as it saves time and can boost the business (Turner and Weickgenannt p.23). At the same time, wrong decisions could result in loss of money and time ton the company. Therefore, when choosing the right accountant, there are a number of factors to consider. Chung (2012) senior policy advisor at the ACCA argues that the proper factor to consider in hiring accountants involves asking rational accounts queries such as what the candidate will add to the financial status of the company. In addition, Chung suggests that it is important to meet various accountants in order to determine the right one(Carey 98).
It is relatively important to take the academic qualification of the candidate for consideration. Accountants must subscribe to various professional bodies such as ACCA and CPA as well as several accounts courses (Sampsell 97). The qualifications of the potential workers have to be regulated by recognized professional bodies. This will boost to ensure that the potential candidates possess the right correct ethical standards. Similarly, it is significant to oversee the testimonials of the potential candidates to find out how they have been faring on with their accounts work. In this case, the recruiters must seek advice from the former employees of the candidates (Berger and Cypers p.32). This will involve seeking the recommendation of the previous employers to understand the candidate in detail. Of note, finding the right accountant can help a company with not only planning tax returns but also with long-term plans to gain more profits.
Ethics and accounts standards are the core aspects to consider in order to avoid red flags. Thus, recruiters must ensure that when selecting the potential accountants, these elements are given priorities. Often, recruiters look deep into the work history of the candidates to determine their ethical values.
There have been several efforts in this field aimed at enhancing efficient and standard hiring process of accountants. Many practitioners and theorists in accounting have suggested that legislation and policy making is the fundamental approach to ensure that ethics dominates in this field. Precisely, law should focus on the hiring process, standard qualification of accountants and how to restructure specialization within this field (Turner 33). Furthermore, legislation must focus on the criteria for determining the legal professional bodies allowed to administer accreditation of accountants. Moreover, technological consideration is relatively important. The world is dynamic, and it is shifting to adopting technology in all sectors accounting inclusive.
Therefore, accountants must be integrated with technological innovations. For that matter, recruiters ought to focus on training and hire accountants with the technical knowledge. For example, in the contemporary world there have been several efforts to include technological aspects into accounts through training and teaching in colleges(Turner 33). Again, accounting packages have been developed to enhance efficiency in the accounting field. It is hence, important for any accountant to understand how technology has been incorporated into accounting. More importantly, practitioners and policy makers concerned with accounting should structure and formulate rational frameworks to guide in effective accounting. As a matter of fact, accounting is a relatively important sector in any company; thus it has to be shaped with proper policies and legislations (Duska 46).
Conclusion
The process of hiring the recruits should be handled with care especially the accountants. Its is because accounts deal with the money of the company. The scrutiny in the process of hiring should be authentic so that the required employees are detected. Individuals that deserve the posts are those who are well acquainted with the ethics and standards of the qualified accountants for quality management purposes.
Works Cited
Aicpa Professional Standards. Chicago: Published for the American Institute of Certified Public Accountants by Commerce Clearing House, 2000. Print.
Benston, George J. Worldwide Financial Reporting: The Development and Future of Accounting Standards. Oxford: Oxford UP, 2006. Print.
Berger, Daniel L, and Michael L. Cypers. Accountants' Liability After Enron. New York: Practising Law Institute, 2002. Print.
Bragg, Steven M. The Ultimate Accountants' Reference: Including Gaap, Irs & Sec Regulations, Leases, and More. Hoboken: John Wiley, 2005. Print.
Carey, John L. Professional Ethics of Certified Public Accountants. New York: American Institute of Accountants, 2000. Print.
Duska, Ronald F, and Brenda S. Duska. Accounting Ethics. Malden: Blackwell Pub, 2003. Print.
Ethical Standards in the Accounting Profession. Topeka: Kansas Board of Accountancy, 2008. Print.
Sampsell, Martha E. Survey Responses of Department Chairs of the Illinois Collegiate Accounting Program to the Revised Illinois Public Accounting Act. Ann Arbor: UMI, 2009. Print.
Singleton, Tommie, and Aaron J. Singleton. Fraud Auditing and Forensic Accounting. Hoboken: John Wiley & Sons, 2010. Print.
Turner, Leslie, and Andrea Weickgenannt. Accounting Information Systems: Controls and Processes. Hoboken: John Wiley and Sons, 2013. Print.
