Final answer:
Accountants are expected to maintain a high ethical standard beyond legal requirements, abiding by principles like integrity, objectivity, and professional behavior. Self-discipline refers to adhering to these standards even under pressure, which is fundamental in fostering trust in financial reporting and the accounting profession as a whole.
Step-by-step explanation:
The nature of the accounting profession demands that accountants assume an obligation of self-discipline above and beyond the requirements of laws and regulations. This statement underlines the ethical responsibilities that accountants have in conducting their duties. Unlike many other professions, accounting is built on the trust of stakeholders that the financial information provided is accurate and reliable.
This trust is upheld by the adherence of accountants to not just the legal statutes but also a professional and ethical framework that includes principles such as integrity, objectivity, professional competence, confidentiality, and professional behavior. These are essential to maintaining public confidence in financial reporting and advice.
To illustrate, an accountant might encounter a situation where they are pressured by a client to bend the rules to show more favorable financial results. While this might not be illegal per se, it would breach the ethical standards set by the accounting profession. Accountants are expected to act with integrity, which might involve declining such requests and reporting them if necessary, even if it incurs displeasure from the client or a loss of business.
The principle of objectivity requires that accountants remain unbiased, avoiding conflicts of interest, and to base their financial assessments and reports solely on professional considerations, not personal ones. The concept of self-discipline in this context refers to the innate obligation to uphold these standards, even when external forces or temptations are present.