Question

Which of the following statements best explains why public accounting, as a profession, promulgates ethical standards and established means for ensuring their observance?

A. Vigorous enforcement of an established code of ethics is the best way to prevent unscrupulous acts.
B. Ethical standards that emphasize excellence in performance over material rewards establish individual reputations for competence and character.
C. Ethical standards are established so that users of accounting services know what to expect and accounting professionals know what behaviors are acceptable, and so that discipline can be applied when necessary.
D. A requirement for a profession is to establish ethical standards that primarily stress responsibility to clients and colleagues.

Answer 1

Public accounting promotes ethical standards to establish expectations, ensure accountability, and maintain trust between accounting professionals and their clients.

Step-by-step explanation:

The best explanation for why public accounting, as a profession, promotes ethical standards and ways to ensure their observance is option C. Ethical standards are established so that users of accounting services know what to expect and accounting professionals know what behaviors are acceptable, and so that discipline can be applied when necessary. By having clear ethical standards, the profession maintains accountability and trust between accounting professionals and their clients, as well as within the profession itself.