Reporting Practices and Ethics Paper

776 Words4 Pages
Reporting Practices and Ethics Paper HCS/405 Reporting Practices and Ethics Paper In the world of financial reporting, numbers can make or break a corporation. Growing competition and diminishing profits are driving some companies to compromise their ethical standards and falsify corporate financial data. These deceptive accounting methods can cause a once thriving corporation to crumble into dust. Ethics must be at the forefront of any healthcare accounting department. Fiscal transparency within the income statement, balance sheet, cash flow statement, and statement of equity must all reflect honest and integral data in order maintain the financial stability of the corporation. The end objective of financial management is to achieve the corporate financial goals for the accounting year. The four elements of financial management are: organizing, planning, controlling, and decision making. Organizing requires a daily commitment to ensure the proper implementation of the company’s resources. Planning requires management determining the short and long-term goals of the company and staying on task to achieve them. Controlling requires making sure that corporate and departmental policies are implemented and adhered to throughout the company. Decision making is a very important aspect of financial management. Options and evidence must be thoroughly investigated before making major financial decisions. All of these elements are equally critical to the financial success and fiscal longevity of every company. Should these concepts be manipulated or abused, the results can be catastrophic. Unethical accounting practices must not be allowed to infiltrate any corporate accounting department. According to Gallup (2012), "Related to the three components of ethics is the responsibility of health-care accounting staff to remain on the leading edge of changes in generally
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