Finance and accounting are the lifeline of companies.

Corporations are formed with one

goal - to make money; that's it, so money and finance and proper recording of
transactions is what keeps a company going.

With respect to ethics, it's an integral part of the accounting profession - if a gatekeeper,
the recorder of transactions allows lapses in judgement, there is nothing to be trusted
about the operations of the company: contracts will be questioned, valuations will be
inaccurate, revenues will be shady, and expenses cannot be compared to anything in
existence.
The company is as good as gone.

To put it more eloquently (Accounting ethics):

The nature of the work carried out by accountants and auditors requires a high level of
ethics. Shareholders, potential shareholders, and other users of the financial statements
rely heavily on the yearly financial statements of a company as they can use this
information to make an informed decision about investment.[4]

They rely on the opinion of the accountants who prepared the statements, as well as the
auditors that verified it, to present a true and fair view of the company.[5] Knowledge of
ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the
right choice that, although it may not benefit the company, will benefit the public who
relies on the accountant/auditor's reporting.[6]

Most countries have differing focuses on enforcing accounting laws. In Germany,

accounting legislation is governed by "tax law"; in Sweden, by "accounting law"; and in
the United Kingdom, by the "company law". In addition, countries have their own
organizations which regulate accounting. For example, Sweden has the
Bokfringsnmden (BFN - Accounting Standards Board), Spain the Instituto de
Comtabilidad y Auditoria de Cuentas (ICAC), and the United States the Financial
Accounting Standards Board (FASB).[7]
. Anything requiring more than one person should have an explicit code of ethics
because ethics aren't universal. Someone may want full transparency at any cost while
another person may prefer to be extremely private for security reasons. An agreed upon
level of ethics is thus important to protect people's interests. That being said, there are
also many morally gray areas that come up during business interactions. There are
things that people should do legally or otherwise and things that people actually do,
especially when it comes down to money. For the sake of survival or gain, people aren't
always honest or they bend the truth to a questionably truthful degree. Sometimes when
you are in a position of trust, you're the one who handles that sensitivity. As a
profession, it's important to discuss ethics for general public good as well because
morally gray areas do come up and a good ethics system is like a compass when the
path isn't clear.

Not just in accounting; even a janitor handles sensitive materials in certain buildings, and
need to keep their clients' secrets.

A "code" of ethics merely points out certain trusts and duties the accountants are
handling for the company. It can probably bind the person legally if properly written by
the legal department; however, it cannot ethically bind the person unless the person
agrees and values the trusts and duties in his/her care. An acountant at a company
perceived to be improving a community may choose to play loosely with the company
funds, while a mob family's accountant may choose to assist the family's money
handlings for any reason.
In the end, it's the person's concept of Ethics which guides its actions. An explicit code
of ethics in accounting is a guideline which protects the company from any possible
contra-survival actions of the accountant. At least everything major is in black and white,
and can be handled.
The goal of producing accounts is to provide a 'true and fair' view of the financial state of
the company.

If you aren't doing that, then you are not doing accounts; you're just telling a story that
may or may not be true.

The Ethics of accounting are all about maintaining this professionalism. If you can't be
trusted, then your assessment of something being 'fair and true' is worthless. If you are
held up a lier, then people don't believe you when you say something is 'true'; if you are
held up as being un-fair, then it's hard for people to believe you when you say something
is 'fair'. As with many professions, the viewpoint of such a professional relies on them
being consistent as well as ethical. Much of accounting standards are above the art of
deciding what is 'fair' -- e.g. accrual of operating leases, depreciation etc; and more
importantly balancing the need to be 'fair' as being 'true'.

For example, depreciation of assets there is always a conflict between being 'true' and
For me, and I can only speak for myself, my personal reputation is effected by my
business ethics. It helps define the type a person I am and clients know they can sleep
at night knowing that someone isn't going to try to cheat them, help them cheat, etc. I
would hope the every profession operates under a strict code of ethics. But for me, I
feel best when I know I am doing right by others.
The biggest reason is that an unethical accountant could in theory steal money or
manipulate information in a way that they could profit from it.

The second reason is that an unprincipled accountant who does not care about the
accuracy of information will provide management with inaccurate financial information
that will likely lead those managers to make bad decisions with adverse consequences
for stockholders, employees, and the economy, most often at the local level.

And that says nothing of the reasons why every person should be ethical.

Ethics are important for every accountant because you are in the position of accounting
for other people's money so you must be able to trust the person who does your
accounting. I have access to many clients' bank accounts and all of their financial
information so they need to know they can trust me to
not abuse that access or information and they have to be able to trust that I am providing
them with accurate accounting information in their financials.
The Company performance is reflected through the nos. in accounting. Hence ethics is
given importance in the accounting so as to depict true form of integrity.

Accountability
Businesses are accountable to a range of shareholders, from partners, to investors,
to customers. Shareholders, partners and investors deserve to know the truth about
your company's finances because this information is critical to sound investment
decisions. Customers, as well, may be entitled to know whether your company is
financially healthy if they enter into transactions that depend on its longevity. For
example, a customer taking out a mortgage has a stake in working with a bank that
is financially stable and a customer renting a storage unit has a stake in the storage
company's ongoing solvency.

Planning
Accountants and bookkeepers have a responsibility to provide the business owners
who employ them with accurate information that facilitates sound planning. This
obligation involves providing accurate information, and providing it in a time frame
that is prompt enough to be relevant. If your bookkeeper takes his time compiling
profit and loss statements that could tell you that your business is spending too much
on payroll, you may miss an opportunity to improve the situation before it puts your
business in jeopardy.

Taxes
Your company has a legal obligation to report financial information fairly and
accurately on tax forms. Providing inaccurate information to tax agencies may lower
your tax burden, but you will be subject to fines and perjury charges if you are
caught. Ethical accounting practices ensure that your tax forms will be completed in
a way that keeps your conscience clear and keeps you out of trouble.

Perception
Honest and ethical accounting helps to create a positive image for your business.
When a company makes news for dishonest accounting, it loses the trust of current
and potential customers. This is especially important with industries that depend on
strong working relationships with their customers. In 2002, the accounting firm Arthur
Andersen surrendered its license to practice after being involved in the Enron
scandal, and its reputation and credibility were severely compromised even after the
surrender ruling was overturned in 2005.