Review of Accounting Ethics

Petronila A.

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Review of Accounting Ethics

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Accounting Ethics, Accountants, Companies, Organizations

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Abstract

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).

Introduction
The current business and regulatory ethics
Accounting ethical breach and impacts
Detecting ethical issues and management failures
Measures that could have been taken
Conclusion

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[...] Review of Accounting Ethics 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). The world is being rocked with many cases of accountants breaching business ethics. What these organizations fail to consider is the environment that employees work in. Accountants may be responsible people who change with the dynamics of the organization. [...]

[...] Some ghost invoices of purchase were made by the accountants. Accounting laws require that all these aspects must be accounted for by the relevant personnel. Instead the, this money was pocketed by the accountants. On the side of the management, it had failed in providing the right environment to ensure employee satisfaction and monitoring. Codes of ethics are rules that must be spelt out clearly for an organization. In most companies and premises, they are put in writing to help remind the employees. [...]

[...] Detecting ethical issues and management failures At the Andersons, the management realized that even after auditing of different departments by its internal accounts, the company still experienced the same financial crisis it faced before auditing was done (Manada, 2010). Generally, the conditions in the business were deteriorating day by day. The management decided to hire independent financial experts to further look at the situation. To the surprise of the organization, they exposed the accountants. A lot of errors concerning entries were detected. The figures were adjusted in the balance sheet to have wrong figures at given accounting periods. [...]

[...] If not taken into account, then a breach of these ethics can affect the business in a great way. Resources can be lost, legal intervention may be needed. Dishonesty and distrust between the employee and employer are the biting effects (Knapp, 2011). The company referred to in this paper faced severe effects ranging from resource loss to collapse. References Brooks, J. L., & Dunn, P. (2009). Business and professional ethics: For directors, executives and accountants. Mason, OH: Cengage Learning. Gaspar, J. (2005). Introduction to business. [...]

[...] London, UK: Cengage Learning. Knapp, M. (2011). Contemporary auditing: Real issues and cases. Mason, OH: Cengage Learning. Manada. S. (2010). Ethics in business & corp governance tata. McGraw-Hill. Miller, L. (2012). Fundamentals of business law: Summarized cases. Mason, OH: Cengage Learning. [...]

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