Principles and Standards of APES †Free Samples to Students

Question: Discuss about the Principles and Standards of APES. Answer: Introduction According to the principles and standards of APES 110 Code of Ethics for Professional Accountants, the accounting professionals need to be honest and need to maintain integrity in the profession. At the same time, the accounting professionals need to maintain ethics in their jobs (apesb.org.au, 2017). As per the provided case study, the directors and CEO may have manipulated the financial accounts of the organization in order to show a healthy financial condition of the company. In this situation, if the investors invest their money in the company by seeing the financial results, they will have to lose their money as in actual the company is not able to provide them with high returns. In addition, sue to unfavorable audit report, the debt lenders of the company may not provide the company with further debts. Overall, the company will lose its goodwill to their customers (cpaaustralia.com.au, 2017). It is the responsibility of the accounts of the companies to conduct all the financial transactions and to prepare the financial reports. In this process, the accounts needs to make it sure that there is not any frauds in the reporting and preparation of financial reports. In case the accounts discover any frauds or material misstatements in the financial reports, they need to report the issue to the high authority (Huang, Rose-Green Lee, 2012). Conclusion From the above discussion, it can be seen that unethical business practices affect various stakeholders of the companies like investors, shareholders, lenders and customers. In addition, the accountants of the companies play a crucial role to detect unethical practices in financial reporting. References APES 110 Code of Ethics for Professional Accountants. (2017).apesb.org.au. Retrieved 25 August 2017, from https://www.apesb.org.au/uploads/standards/apesb_standards/standard1.pdf Huang, H. W., Rose-Green, E., Lee, C. C. (2012). CEO age and financial reporting quality.Accounting Horizons,26(4), 725-740. APES 110. (2017).Cpaaustralia.com.au. Retrieved 25 August 2017, from https://www.cpaaustralia.com.au/professional-resources/accounting-professional-and-ethical-standards/apes-110-code-of-ethics-for-professional-accountants