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Ethics in data collection is an extremely important factor to consider when collecting, storing, and analyzing data for a specific purpose. Individuals have the right to privacy and accountants must consider whether there is assurance to their personal data, so it is not misused in any way shape or form. The text provides a good example regarding an individual's credit card number and assuring that it will not be misused. The Institute of Business Ethics provides questions to allow business to protect the stakeholder's privacy and create value in their business at the same time. The few examples are privacy notices, safeguards to mitigate misuse, and due diligence when sharing or acquiring from a third party (Richardson et all, pg. 69, 2023). Obtaining consent to collect confidential information is so important and if an accountant or auditor perform unethical acts with this data they jeopardize their reputation and their job. In the Capstone course I am currently in, I have been extracting annual reports regarding data breach/ cyber incidents and in many cases the individual's information got hacked and they are left vulnerable. In an article published by JOLT, states that "while external litigation pressures and the current data breach regulatory state may not incentivize business to take additional steps to safeguard consumer privacy, ethics would certainly suggest that businesses should voluntarily adopt higher standards for data protection" (JOLT, 2016). Since this article was published, it is important to note that cybersecurity measures have been discussed more by the SEC regarding a material data breach disclosure to be reported 4 days after the cyber incident has occurred (SEC, 2023). Ethics still plays a huge role in the matter to ensure the upmost protection for the individuals. As technology advances, so do the hackers meaning it is vital for businesses to keep strong safeguards against their private company information. A company does not want to risk the information getting in the wrong hands. 

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Accounting is a field that requires high standards for ethics and professionalism. Both the American Institute of CPAs (AICPA) and the International Ethics Standards Board for Accountants (IESBA) have a CPA code of ethics; the IESBA establishes five ethical principles for accountants: Integrity, Objectivity, Professional competence and due care, Confidentiality, and Professional behavior (ICAS Ethics Committee, 2015). These principles should all apply to how accountants use data as well. Data must be used in an ethical manner and for their intended purpose (Richardson et al. p. 69). Even though accountants know that they must uphold the ethical standards of the profession, not everyone realizes that ethics must also extend to the use of data. In a 2021 McKinsey Global Survey on the state of AI, for instance, only 27 percent of some 1,000 respondents said that their data professionals actively check for skewed or biased data during data ingestion. Not using, collecting, storing data ethically exposes a company to a myriad of risks. For example, if an auditor has to test invoice collection and has access to customers' bank account information, they must do all that they can to protect that information so as not to share it with unauthorized users or to commit any sort of fraud. While loading the data into some sort of automation might make the process easier, some information should not use a "short-cut." Auditors must protect client information and also personal information they might come across in an audit. Improper data handling is not only unethical, but also unwise for meeting business objectives. The McKinsey article also highlights how businesses might be tempted to make unethical data choices to increase short-term profits. Kiradoo writes in an analysis that "compliance to ethical principles and ethical standards is necessary for ensuring the quality, fairness and trustworthiness of accounting statements" (Kiradoo 2020). Beyond this, ethical behavior around data protects a company from litigation, compliance issues, and their reputation. Accountants and auditors have a responsibility to behave ethically with data both as a moral standard but also to ensure the success of their business.

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