Manuscript Number : GISRRJ203393

Financial reporting mandates that all consumers of financial systems must be familiar with generally accepted accounting standards (GAAP). In the commercial realm, precise accounting is essential. Ethical financial reporting & accounting procedures align with fundamental human needs. It establishes credibility with the public and employees. Ethics and accounting serve to safeguard the public from unethical corporations. Many accountants conceal or distort information in their professions. The majority of accounting scandals have occurred due to deceptive financial reporting. The company's management provides a misrepresentation regarding the financial statements. This is typically executed to deceive investors and sustain the company's current share price; but, in the context of contemporary business ethics, its importance is underscored by the need to address worldwide financial scandals. A direct ethical guideline is necessary to raise awareness about defending against the corporate scandals that have occurred in many regions throughout different countries, which are detrimental to both the economy and society. Accountants and managers must adhere to specific professional ethical standards about the information they provide, ensuring financial management adequacy, audit quality, and corporate ethics. This study elucidated the concept of ethics, the origins of ethical dilemmas in financial reporting and accounting, and the measures necessary to address these concerns.