Accounting Ethics: A Panacea to Financial Statements Manipulation

Abstract

The alarming rate in the incidence of manipulation of financial statements in recent times is becoming worrisome to industry watchers. The focus of this paper is on the need to embrace professional ethics as a panacea to financial crimes and statement manipulations in contemporary practices. The review method was used in providing answers to several questions that have agitated the minds of the researcher. It has being observed that a financial crimes and statement manipulations has become the order of the day. How did we find ourselves in this precarious situation? What is being done to rectify it and what does the future holds. It was discovered that accountant obligations transcend beyond their immediate clients to other stake holders. Therefore behaving ethically is an essential and expected trait. Regardless of accounting standard and rules, without professionals ethics, accountants can provide manipulated financial reports .The existence of accounting standards and rules parse does not guarantee a sound and appropriate financial report. It was concluded that a combination of professional ethics (business and accounting ethics) and qualitative characteristics of financial reporting must be used in developing quality financial reports. Keywords: Accounting Ethics, Financial Statements, Financial Reporting, Accounting Standards.