Ethicality of Accounting Activities

1468 Words6 Pages
Ethicality of Accounting Activities The WorldCom case is an example of unethical behavior performed by a company by abusing accounting activities to reflect misleading financial information. In this case the main cause of this unethical behavior is greed and neglect by the executives that allowed and encouraged this behavior. On the other hand, WorldCom employee Cynthia Cooper is a prime example of ethical behavior that took place to uncover the wrong doing of individuals. Upon reading an article of a former financial analyst, Cynthia Copper’s mind was intrigued, an audit was conducted on capital spending. In the WorldCom and Cynthia Cooper case unethical behavior was evident in multiple departments and involved top key players that tried to cover up the fraud. The American Institute of Certified Public Accountants has established principles that include responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. The first principal responsibility which entails carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities. Cynthia Cooper remained professional and used moral judgments during her discovery of unethical accounting practices. She remained persistent and was never discouraged to stop her discovery when she revived inconclusive answers. The second principle involves public interest. The CEO of WorldCom, Scott Sullivan, did not protect the interest of the public. He clearly misstated the capital spending and improperly classified the costs. The financial statements produced by this misstatement resulted in the company having a record of more assets than what was evident. Internal and external stakeholder’s interests were not protected. Scott Sullivan clearly put his own interest before the interest of
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