Chapter 1 — Accounting Careers: Communication and Ethics in the Workplace
What is Accounting?
Accounting Planning, recording, analyzing, and interpreting financial information
Accounting System a planned process for providing financial information that will be
useful to management
Accounting Records — Organized summaries of a business’ financial activities
Accounting education helps owners and managers make better business decisions
Accounting is called the language of business.
Individuals having accounting skills are better prepared to keep financial records.
Job Opportunities in Accounting
Accountant — person who plans, summarizes, analyzes, and interprets accounting data
Public Accounting Firm - a business selling accounting services to the general public
Private accountant - one who is employed by a single business
Bookkeeper -- a person who does general accounting work plus some summarizing and
analyzing of accounting information.
Accounting clerk — a person who records, sorts, and files accounting information
General Office Clerks — a person who does general kinds of offices tasks, including
some accounting tasks.
A Career in Accounting — Illustration 1.1, page 10
Professional Certification -- CPA — Certified Public Accountant
each state sets the standards for earning a CPA certificate
CMA — Certified Management Accountant
CIA — Certified Internal Auditor
Professional Organizations — ATCPA — American Institute of Certified Public
The Importance of Communication and Ethics in Accounting Communication —
accounting information is of little value unless it can be communicated effectively to the
individuals responsible for making business decisions.
Oral or Written
effective communication requires both a knowledge of good communication skills and
regular practice using those skills.
Ethics — the principles ofright and wrong that guide an individual in making decisions
Business Ethics — the use of personal ethics in making business decisions
Six different factors may cause an individual to make an unethical decision
1 . Excessive emphasis on profit
2. Misplaced business loyalty
3. Personal advancement
4.’ Expectation of not getting caught
5. Unethical business environment
6. Unwillingness to take a stand
Making Ethical Decisions
THREE STEP CHECKLIST
1. Is the action illegal? Analyze the situation. Obeying the law is in your best interest
2. Does the action violate company or professional standards?
3. Who is affected, and how, by the action?