These owners have limited liability. The entity is responsible for a business income tax and the owners are responsible for personal income tax on profits that are distributed to them in the form of dividends. Ethics are crucial in accounting. Ethics are beliefs that separate right from wrong or accepted standards of good and bad behavior. Ethical behavior is important in all successful organizations.
Ethical behavior is necessary in accounting if the information it provides is to be trusted.
The ethical challenge is to make ethical decisions. Social responsibility is an increasing organizational concern. Social programs in organizations are becoming more prevalent today. A social audit is an analysis of an organization's success in carrying out programs that are socially responsible and responsive. There are three main fields in accounting.