When unethical decisions are made, everyone involved in the corporation and its well being are affected in a negative way and will jeopardize the well being of the business. “Ethical responsibilities of an organization’s management are to follow the generally held beliefs about behavior in society” (Wheelen and Hunger, pg 58). An ethical role within the corporation is not mandatory, however it is practiced in most businesses would be giving employees notices of
E2-1 (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. TRUE (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. FALSE. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. However, an implicit assumption is that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.
Credit crunch and recession are great examples of external factors influencing the business. If the people are suffering from recession, they will not have money to spend money and this is how it affects the businesses. The current instability in Iraq is a good example of what may happen to businesses. In business it’s very important to understand, monitor and adapt to the political environment, because it crucially affects every business. Some of the very important factors are: Government stability effects businesses in a great range by competing with businesses to lower their costs, transparency is another important factor where anything the business does is revealed to the government and the government know exactly what they are up to.
As people as a whole have proven time and time again, there are rules and laws and there are people whom break those rules and laws for personal gain. As long as people choose to be dishonest and unethical in their businesses and personal choices when it comes to finances, there will be financial fraud and investors will suffer financial
Ensure information is up date and secured from a reputable source are the only ways you can be sure of its validity. Gathering raw data instead of correlated data can also prevent bias. Methods of collection are: * checking research provided by others * checking written material including referrals and client files * classification tools * individual research * information from other organisations * interviews with colleagues/customers * observation and listening * previous file records old information Outdated information gives misleading and in accurate facts which could have a huge impact on decision making. This information is only useful when looked at in conjunction with new facts and figures as part of a reflection process. It could have huge financial implications for businesses and presenting this misinformation to others could also mean damaging you reputation interpersonal skills Using interpersonal skills can be a very powerful method of collection especially in the workplace where it can help you to save time.
The offenses are harmful to not only businesses in the United States of America but to the world of business as a whole and are unacceptable. If the law had been in place, many shareholders would have been safeguarded but numerous investors lost their lifetime savings by company insiders. The corporate world is a much more secure place with regards to investing with all of the changes and modifications which are now enforced. I still think there are other actions which can be taken to protect shareholders even though the modifications have significantly improved the procedure. Businesses must develop an ethical balance so as not to take advantage of unknowing shareholders who have invested their lifetime
Why or why not? Week 2 DQs Financial statements are an important product of the accounting process. Provide an example of an internal user. How could he or she be harmed by fraudulent and unethical financial statements? Financial statements are an important product of the accounting process.
There seems to be a lack of compatibility with what ethics is supposed to be and business ethics. For example a person handing his money over to a mugger threatening physical harm isn’t considered unethical although the mugger is a criminal but in the business world paying off union racketeers to prevent disruption is considered to be unethical practice. The confusion around ethics in general and business ethics continues when we start looking at other business systems outside of the United States. Take for example the Japanese and German who consider the appointing of a counselor who was previously a distinguished civil servant based on the recommendation of his colleagues is essential to the public interest. However, if this practice were to be demonstrated in the American business system it would be considered questionable if not criminal.
They can easily use fraud to authorize payment for a false invoice. The accountant also should not be able to print checks and complete the bank reconciliation. It allows the accountant to perpetrate fraud because they have access to blank checks to write fake checks and then cover it up with their record keeping responsibility. Along with segregation of duties, this also violates independent internal verification. A different employee, separate from personnel responsibility for the information, should make the verification and should report any discrepancies to management.
Break Breaker Inc. to some extent obey with some legal rules, but failed to comply with principles of morality and community, contribute to the society by producing honest high quality services, and account the consequence of damaging their reputation. I think that Solomon’s argument is fairly accurate, but everyone’s views are different on this. Some actions may be acceptable to some but unacceptable to others. Ethics provides the bigger picture in the business life and it must be understood. In my opinion, nothing is more dangerous to a business than a bad public image caused by being unethical.