The accounting profession utilizes Christian ethics that are fundamental in worldwide integration and the use of biblical concepts in direct relation to the accounting profession. Integration of the biblical ethical standards guides is similar to some accounting principles that are widely used for the completion of accounting tasks. Chartered accountants can derive morality from a Christian point of view that is guided by biblical research. The aim of this paper is to relate the concepts of management accounting in the accounting field to Christian ethics and the worldwide view.
The Bible has numerous ethical annotations and quotes that were used to guide human living in the areas of application. Ethics may range from one area to the other, though the focus of the paper will mainly be centered on the issue of business ethics. Business ethics is discussed in the Bible, and famous quotes include: Proverbs 22:29 that states “Do you see a man skilled in his work? He will stand before kings; He will not stand before obscure men” (Proverbs 22:29 King James Version). Another verse that deals with business ethics is in 2 Kings 12:15, as it indicates “Moreover, they did not require an accounting from the men into whose hand, they gave the money to pay for those who did the work, for they dealt faithfully.” (2 Kings 12:15 King James Version). This is also discussed in Proverbs 11:1 “A false balance is an abomination to the Lord, but a just weight is his delight” (Proverbs 11:1 King James Version).
The quote from 2nd Kings indicates that there was faithfulness and the men who were required to submit the money did it diligently as this is an indicator that there was trust while handling the money. This can be applied to risk management practices as there are few risks involved when one is trusted to act prudently and avoid misappropriation of funds that may lead to losses as indicated by Kaplan (2015). The risk was foregone in such a case as the measures put in place ensured that the money was passed to the relevant parties. This can be applied in everyday life as managers can ensure that the risk involved is effectively dealt with through certain measures that ensure honesty while the management of accounting principles.
Proverbs indicate that the Lord loathes falsification of accounts, but is contented and happy with following just practices. In management accounting, this can be applied in planning and budgeting; budgets are required to be true statements that are reflective of what is to be used, actual costs and the balances as stated by Kaplan (2015). Planning should also be carried out in accordance with stated requirements. Budgeting procedures should apply just measures that ensure justification of budgets if the need arises. Being just is also important when it comes to tax accounting and individuals and companies should remit what is required and avoid malpractices like tax evasion.
The Bible verse in Proverbs 22 on the use of skill is important in the field of management accounting as it indicates that skill may be required in areas of application that are inclusive of financial accounting, tax accounting, and internal auditing. Accountants are mandated to be skilled in these areas so as to complete the tasks at hand effectively. It is a requirement that management skills are employed in the completion of such tasks in a professional manner so as to be able to justify one's work when dealing with the management of the company or during submissions of reports as stated by Kaplan (2015).
The articles provide great insight in the areas of management accounting and specifically in business ethics. Business ethics are important as they are a true reflection of what is required from the company and the standards that are to be met. Just measures should be applied in the use of different accounting methodologies that occur in finance. The verses embody the worldview and requirements of standard practices and maintenance of integrity and honesty.
References.
Bible, K. J., & Various. (1996). King James Bible. Proquest LLC.
Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.
