Business Ethics Through The Prism Of Moral Dilemmas Of The Accounting Profession In Montenegro

Having in mind that many professions in modern business conditions abound in introduction of the code of ethics, International Federation of Accountants (IFAC) has prepared the Code of Ethics for Professional Accountants. Since the collapse of big companies and inadequate reliability ratings of financial statements by major auditing companies, the issue of the quality of the financial statements, which serve as the basis for all business decisions and ultimately direct the development of each company, comes to the fore. The paper aims to show the impact of business ethics, and moral dilemmas to the level of quality of financial reporting. The work is based on the hypothesis that companies with a greater degree of commitment and business ethics have a higher level of quality of the financial statements in respect of those companies which are characterized by a lower level of business commitment. The fulfilment of the set objective of this paper requires its structuring into two parts. The first part will be an overview of the importance of the accounting profession, its ethical dimension and the role it plays in achieving the quality of financial reporting. The second part of the paper concerns practical review of the processed theoretical issues through the example of neighbouring countries that are at the stage of EU accession or are already full members of the European family.