SHOULD ETHICS BE TAUGHT IN ACCOUNTING SUBJECT? Nowadays ethics should be taught in the accounting field. This is because accounting profession relies on an accountant. Accountants are people who have a wide range of behavior. Attitude and behavior of each person is different, so accounting ethics need assistance.
Consider the following: • What kinds of accounting, audit, and tax services does the firm provide? • Who is their target market(s) by industry and company? • Why would prospective clients give serious consideration to have KSM handle their accounting, audit and tax services? 3. Working in an ever changing accounting, audit and tax environment that is driven by change and strict regulatory adherence, how does the managing partner (David Resnick): • Ensure strict employee compliance to federal and state regulation and the company’s high ethical standards?
4. The inefficiency of international companies having to understand and use a myriad of different accounting standards depending on the countries in which they operate and the countries in which they raise capital and debt. Executive talent is wasted on keeping up to date with numerous sets of accounting standards and the never-ending changes to them. 5. The inefficiency of investment managers, bankers, and financial analysts as they seek to compare financial reporting drawn up in accordance with different sets of accounting standards.
Managerial Accountants should calculate net income or loss in a manner that accurately reflects the closest true costs and profits as determined by the International Federation of Accountants (IFA). To effectively help Management Accountants do this, the IFA has set in place a code of conduct that should regulate the integrity, competence, confidentiality, and credibility of a corporation. Introduction To fully understand the ethical issues of Managerial Accounting, you must first assess the difference between Managerial Accounting and Financial Accounting. Financial accounting is used for to present the status of the company to external sources such as board of directors, investors, auditors, and for reporting purposes as well. The financial side of accounting is used to represent the company’s current standing based on the past profits, net income, bad debts, and current ratio of assets to liabilities.
Athens State University Ethical Essay: The Accountant’s Role in Financial Management AC312 (21388) – Law for Accountants Clients expect accountants to listen to their financial concerns and provide a solution that suits their needs. The accountant must fulfill those needs within the rules of Generally Accepted Accounting Principles (GAAP) as established by the Financial Accounting Standards Board (FASB). The services clients expect of their accountants may differ from what they are required to do by law. Some clients may believe the accountant’s sole responsibility is to maximize their profits or act as their personal financial representative. The reality is that accountants have a legal and ethical duty to follow the rules and regulations as outlined by GAAP.
The company inflated the assets and made the entries seem as though they had income. The Code of Professional Conduct of the American Institute of Certified Public Accountants establishes rules and principles for the accounting profession to follow. The actions that were taken by the executive team at Worldcom violated the guidelines that had been established to protect the industry, government and the public. Generally accepted accounting principles require that a company expense the lease costs as they
Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P. Earnings management is when companies inflate their earnings or revenues. We have seen this with WorldCom who altered capital expenditures instead of expensing them. Waste Management also did this when it extended the useful life of its trash trucks. Materiality is defined by the FASB as an omission that would affect a normal person by a misstatement such as using earnings management to skew the true earnings or revenue.
Abstract In this essay is to discuss Business Ethics and Corporate Social Responsibility (CSR) by using Anglo-American and Primark as examples. Both companies have a strict policies on ethical behavior which can be used as a catalyst in how to conduct business ethically. Some of the key things I will emphasize what is meant by ethical business. Then I will analyze is how Anglo American and Primark apply ethics into their business. Moreover, The costs and benefits to an organization when they behave ethically.
Ethical Issues in Organizational Business Robert A. Lanese BUS610: Organizational Behavior Dr. Prakash Menon November 18, 2010 Ethical Issues in Organizational Business The main focus of this paper is to determine why ethical issues are of a major concern in organizations, what individual influences impact ethical behavior, and how can organizations influence ethical behavior in employees? “Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality-that is, concepts such as good and evil, right and wrong, virtue and vice, etc.” (www.wikipedia.org). I personally believe that ethical issues are of major concern within a business organization because it is ethics which help define and drive a company. For example, the collapse of Enron was a result of huge losses being placed within fake companies. Enron is a prime example of how the temptation of greed and the actions of irresponsible behavior can grow and spread like an infection from a corporate boardroom.
Second, the auditor should try to understand the entity being reviewed and its atmosphere. This includes the use of internal controls to identify fraud or errors that may attribute to a misstatement in the financial statements. The