ETHICAL ASPECTS OF ACCOUNTING AND AUDITING ACTIVITIES IN THE REPUBLIC OF BULGARIA

Abstract

In the conditions of modern dynamic globalization processes the need to apply uniform, internationally
recognized principles and requirements for professional ethics of accountants and auditors in a global plan is
increasingly growing. This requires an increasing convergence of ethical standards in this area applied in the
individual countries around the world. The Republic of Bulgaria follows global trends in the processes of
introduction and application of high-quality international ethical standards in the sphere of accounting and auditing
activities.
The primary goal of the paper is to explore the fundamental ethical principles and requirements in the accounting
and auditing activities in Bulgaria in the modern conditions. It examines the role and importance of the international
ethical standards for professional accountants and auditors in the context of economic globalization. These standards
are a result of global efforts for summarizing the world experience in the area of accounting and auditing ethics, of
existing basic ethical values in different countries and the common issues of ethical nature for accounting and
auditing practice in a global aspect. Based on the results of the research, the conclusions are made about the
important advantages and benefits of implementation of globally recognized ethical principles and requirements in
accounting and auditing profession.
The working methodology of the study of the problems in the paper is based on the methods of observation,
comparison, analogy, analysis, synthesis, induction and deduction. The application of the historical-logical and
normative approaches and the method of comparative analysis are of essential significance for achieving the primary
goal of the research and for substantiating its results.
The paper emphasizes the functions of the ethical principles in the field of accounting and auditing activities. Four
basic functions of these principles are highlighted – informative, regulatory, evaluative and forming. The
informative function is related to the consideration of the ethical principles as a source of information for system of
professional ethical values that are required to be observed in accounting and auditing activities. The regulatory
function is expressed in the purpose of ethical principles for regulation of the professional behavior of accountants
and auditors through tools of the moral regulator. The evaluative function of the ethical principles is realized
through their use in accounting and auditing practice as criteria for assessment of the activities of accountants and
auditors from the point of view of ethics. With the forming function the ethical principles provide the formation of
specific values, beliefs and qualities that support the professional activities of accountants and auditors and the
making of correct decisions regarding arising ethical problems.