This paper seeks to find out the codes of ethics governing a business, its implications and the measures that needs to be taken to control the cases of employees breaching ethical codes. The current business and regulatory ethics The current environments are fairly conducive for business especially the accounting sector. Fast and former most, there is much pressure from the management. The companies and organizations put very high expectations that are next not impossible to reach. Accountants work extra hard to create financial statements like the balance sheets, trial balance, income statements just to mention but a few (Brooks & Dunn, 2009). These statements require a lot of keenness and a slight mistake can lead to tragedy. On issues that concern assets, the accountants are to give the correct figures on the asset in question. If the accountants are unsatisfied and put under fire by the management, alterations on the figures may occur. They can give figures that please company owners but in the long run, the company will realize a downfall if they are not careful. Accountants are usually faced with complicated accounting systems that are difficult to follow and use. Some organizations use accounting systems that are too clumsy to use. The accountants are prone to errors like omissions and technical mistakes (Knapp, 2011). Business and accounting ethics require that the systems used must be familiar to the accountants so that they get an easy time in their operations (Manada, 2010). The management recommends systems that they cannot understand. If any accountant is well conversant with a complex stem, it makes possible to him or her as she can easily manipulate the organization. For any mishap to be detected, it will require extra efforts from the business (Miller, 2012). Accounting ethical breach and impacts In an organization known as Arthur Anderson, accountants were called upon to do the audit. Surprisingly, they did breach the accounting ethics they gave a wrong publication about their findings on the business. Honesty was never observed by this group. For any organization, honesty is a virtue that must be adapted (Manada, 2010). These accountants never gave the public and the organization the exact figures concerning important financial documents. Inventories such as profit and loss accounts records of the company were doctored. Openness is another business ethic that the accountants violated in this organization. They took the advantage of being the professionals and hid the necessary information from the public and the organization. When carrying out auditing, transparency is needed. Accountants took advantage of the complexity of their profession to hide vital information from the organization and the public. Responsibility was never observed by the accountants in this organization. Auditing was being done and opposite results were given to the management. This process involves looking into the financial records of a company to identify flaws that may be done by other employees in the organization. In the contrary, the auditors were trying to cover up their tracks. They never carried on their duties properly. After the fraud was realized, they refused to own up to their wrong doings. It had to take investigative measures by relevant authorities to make them answerable (Knapp, 2011). It is important to note that this profession involves confidentiality but when there is a matter that needs
Review of Accounting Ethics Name: Institution: Ethics, in general, have different meanings in various disciplines. In this context, business ethics implies the rules and codes that the organizations and the accountants have to follow at work places. A business transaction is governed by these codes and anything contrary is a breach (Brooks & Dunn, 2009)…
It finally makes recommendations on how accountants can be made more responsive to ethical standards and methods. Keywords: Accounting, Ethics, Sarbanes-Oxley, Stakeholders Table of Content Executive Summary………………………………………..4 Introduction……………………………………………….
Managers have been continually unable to effectively use management accounting information concerning existing dynamics. Therefore, the paper will reveal the existing managerial accounting dynamics that have hindered effective communication and decision making by managers.
Central administration economic strategy regarding information economy and 2020 visualization has as well opened the marketplace up for the contest and undoubtedly augmented technological development. These alterations have impacted terribly much on the global business setting, predominantly on developed industry, which has been depicted as the most dynamic and imperative contributor to the Global economy.
The information related to the Barclay’s Bank in LIBOR rate fixing scandal has led to the drawing attention to the ethical issues resulting in the breach of the ethical issues related to the financial institution over the last five years. Thus the corporate ethical breach has increased in the recent times due to the increase in the loopholes of the company’s ethics (International Risk, Crisis & Business Continuity management, 2011, p.1).
One of the major department of the organization which indeed is the most critical one when it comes to the business ethics is the accounting and finance department. Not only most of the ethics are breached in this department but it is also one of the most sensitive ones (Fieser, 2013).
The example of corporate accounting scandals that occurred over the years have been analyzed to find the impacts of unethical accounting practices in such cases. This helped to explain the importance of ethical accounting practices in the companies. The accountability of the accountants and auditors in providing true financial disclosures for protection of the investors has been emphasized in this research.
In the preamble that has been recently published by OECD, they have stated that corporate governance signifies a set of association that lies between the management of the company, its shareholders and its board, which also involves the other stakeholders of the company.
Stewarts article is of particular importance in understanding the organizational arrangements to ensure ethical accounting and financial practices. This article provides a debate on the objectivity and success of standards applied to organziations and ends up weighing between