The 1987 Hollywood blockbuster Wall Street has its charismatic villain Gordon Gekko played by actor Michael Douglas mouth the words "Greed is good" in a very forceful and dramatic scene which has gone on to be one of the most memorable scenes in cinema history. The character is shown to be ruthless and corrupt, and meets his comeuppance at the end in the traditional Hollywood style. The world is full of such Gordon Gekkos who believe in having more than they are entitled to or deserve, by hook or crook. Hence the increasing corruption which leads to epic accounting scandals like that of Enron, Worldcom and Satyam.

The one thing that all these scandals have in common is that the companies exploited loopholes in accountancy regulations to present a completely unrealistic picture of their financial status. These scandals have driven decision makers around the world to come up with regulations and procedures that would ensure ethics in accountancy. It has now become necessary for business organizations to fulfill the requirements of corporate responsibility. While the business world in general requires implementing a code of ethics, the accounting world in particular needs to adhere to very high standards of ethical conduct because finances form a central part of any business, and financial decisions are influenced by the information provided by accountants.

The American Institute of Certified Public Accountants (AICPA) has come out with a Code of Professional Conduct for accountants which covers issues like General Accounting Standards and Principles, and Principals of Professional Conduct. The code of conduct also dwells upon issues like Integrity, Objectivity and Independence. These three principles are seen as important factors that determine how ethical and successful an accountant will be in fulfilling his/her duties. Elaborating individually, Integrity refers to the accountant's commitment to being honest in communicating with clients, preparing reports and presenting views. Objectivity emphasizes that the accountant should work independent of any conflicts of interest with the client. Independence dwells upon the relationship the accountant shares with the client, the relationship should not be such that it creates a bias for or against the client which influences the accountants' reports and judgment. Just like the AICPA, the Institute of Management Accountants (IMA) has also made efforts to ensure the prevalence of ethics in accounting. The organization's website has a section called Ethics Center which presents a Statement of Ethical Professional Practice, and Leadership Strategies and Ethics. IMA's take on ethics in accountancy also identifies objectivity and integrity as crucial requirements. Both organizations have ensured that business organizations follow the ethical standards laid out by them by instituting disciplinary actions against organizations that have been guilty of violating them. Such organizations may go on to be disbarred or suspended, and even lose their practicing license depending upon the severity of the offense.

Rules and regulations are necessary for showing us the right way of conduct. But all said and done maintaining ethical standards, whether in the profession of accountancy or any other sphere of life is an individual responsibility. People commit frauds inspite of all the right rules and regulations in place. But that does not mean that such measures are not effective, penalties do deter many people from violating codes of ethics, for those who still commit frauds eventually meet with their comeuppance, whether it's the fictional Gordon Gekko, or his real world counterparts who were responsible for scams like that of Enron.