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BLITZKRIEGSAGAR SALIMBUBESH M.S
AGHIL ANTONY
MUHAMMED ROSHANABDUL NAZAR
KRISHNAPRIYA N.VRAMYA K.P
SREELAKSHMI K.R
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Finance is a social science discipline. The discipline borders:
behavioral economics sociology economics accounting and management.
It concerns technical issues such as the mixof debt and equity, dividend policy, the
evaluation of alternative investmentprojects, options, futures, swaps, andother derivatives, portfolio diversificationand many others.
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Accounting is defined bythe American Institute of CertifiedPublic Accountants (AICPA) as "the
art of recording, classifying, andsummarizing in a significant mannerand in terms of money, transactions
and events which are, in part atleast, of financial character, andinterpreting the results thereof.
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Accountancy is the process ofcommunicating financial informationabout a business entity to users suchas shareholders and managers. Thecommunication is generally in the formof financial statements that show inmoney terms the economicresources under the control of
management; the art lies in selecting theinformation that is relevant to the userand is reliable. The principles ofaccountancy are applied to business
entities in three divisions of practical art,
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Ethics, also known as moralphilosophy, is a branch
of philosophy that addressesquestions about moralitythatis, concepts such as good and
evil, right andwrong, virtue and vice, justiceand crime, etc.
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Accounting ethics is primarily afield of applied ethics, the studyof moral values and judgments as
they apply to accountancy. It is anexample of professional ethics.Accounting ethics were first
introduced by Luca Pacioli, andlater expanded by governmentgroups, professional organizations,
and independent companies
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Relate accounting education tomoral issues.
Recognize issues in accountingthat have ethical implications. Develop "a sense of moral
obligation" or responsibility. Develop the abilities needed todeal with ethical conflicts or
dilemmas.
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Learn to deal with the uncertaintiesof the accounting profession.
"Set the stage for" a change in
ethical behavior. Appreciate and understand the
history and composition of all
aspects of accounting ethics andtheir relationship to the generalfield of ethics. Stephen E. Loeb
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ETHICAL ISSUES IN ACCOUNTING
Provides fair and accuratereporting of the financial positionof a business
Ethical issues
Reporting income, falsifyingdocuments, allowing or takingquestionable deductions,illegally evading income taxes,engaging in frauds etc.
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FRAUD IN FINANCIAL STATEMENT
CAN BE COMMITTED IN 5 WAYS: Fictitious revenue-revenues notactually earned
Fraudulent Timing differences Concealed liabilities and expenses
Fraudulent disclosures or Omissions
Fraudulent asset valuation-falsestatement of the inventory available
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TYPES OF ACCOUNTS Financial Accounts
>company uses to report to theirshareholders
Internal Management Accounts
>shows the internal operations of
the business and its financialactivities
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2 types
>Managementaccountant-
formulating policies
planning and controlling the activities ofthe employees decision making disclosure to shareholders etc.
>Financialaccountant
Economic information to the investors,
employers, suppliers, outside people
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Accountants in professional
practice provides 2 types of accounting service1. The auditor- Appointed by shareholders to audit a
particular company- Duties include: to give an accurate statement about the
state of affairs to meet the objectives of the Companies
Act to be reasonably skillful and careful in
identifying the true nature of accounts
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2. Accountants in related
services- Offer services in different fields
like:
Tax services
Management consultancies
Insolvency services Environmental audits
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The Ethical AuditMain purpose- check the actions of a firm
Objectives
Assess the bus. structure and procedures,systems and policies
Whether busi. Activities comply with thestandards
To identify the way in which it doesbusiness
Evaluate whether mgmt. has relevant
inform. in running the busi.
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To help busi. undergo major alterationslike restructuring
To identify the training necessary for theemployees
Establishing ethical conduct of business
to attract valuable investments Establish code of conduct
Helps the shareholders to evaluate theperformance of the directors and viceversa
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The purposes of the Code of Ethics are todeter wrongdoing and to promote:
honest and ethical conduct, including the
ethical handling of actual or apparentconflicts of interest between personal andprofessional relationships
full, fair, accurate, timely, andunderstandable disclosure in reports anddocuments that the Company files with, orsubmits to, the Securities and ExchangeCommission (the SEC) and in other public
communications made by the Company.
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compliance with applicablegovernmental laws, rules and
regulations
the prompt internal reporting tothe Companys General Counsel
and/or the Audit Committee ofviolations of the Code of Ethics
accountability for adherence to the
Code of Ethics.
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Members of the Accounting and FinanceTeam shall:
act with honesty and integrity by avoiding.
conflicts of interest between his or herown interests and the best interests ofthe Company.
accepting improper personal benefits asa result of his or her position withthe Company.
comply with all applicable laws, rules andregulations of federal, state, provincial and
local governments, and the rules and
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act in good faith, responsibly, with
due care, competence anddiligence, and withoutmisrepresenting material facts orallowing independent judgment tobe compromised
encourage and reward professionalintegrity in all aspects of theCompanys organization by
eliminating barriers to responsiblebehavior such as coercion and fear
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ETHICAL ISSUES IN FINANCEImportance of Financial Statement &
steps to be taken by themanagement for true, fair andreliable mgmt. accounts:
Determining the key elements of thebusiness like the objectives and see howthey are defined and measured
Making sure that the funds are allocatedto different activities on the basis of theirimportance
Frame rules that have a positive effect onbusiness activities
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The Company expects all membersof the Accounting and Finance
Team to honor and abide by theCode of Ethics in all respects.
Members of the Accounting andFinance Team who violate theCode of Ethics will beappropriately disciplined through
action up o and includingtermination. The Audit Committeeof the Board of Directors shallmonitor and make determinationsand recommend action to theBoard of Directors with respect to
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