Unethical Behaviors in the Accounting Profession and Preventing These Damaging Behaviors
Please prepare a reply to this post:
Debate the unethical behaviors found in the accounting profession and your suggestions for prevention of these damaging behaviors.
Unethical behaviors found in the accounting profession includes:
1. Providing erroneous information which regards to the expenses incurred by a business.
2. Exaggerating the revenue of a business.
3. Misappropriation or embezzlement of business fund.
4. Providing wrong information to tax authority
5. When the same firm prepares and also audit the financial statement of that company. This is very wrong because fraud might not be detected, and it won't represent a fair view of the company's financial statement.
6. Manipulation of financial statements, also known as window dressing in accounting.
7. Using confidential information for personal gain, e.g blackmail.
8. Practicing with a fake license.
Professionals in accounting have a moral obligation to uphold high ethical standards when making sound business decisions. By adhering to laws and regulations as guided by ethics, accounting professionals enhance the reputations of their organizations and promote sound financial practices that lead to the sustainability of the organization. Regulations are critical in the accounting profession because they promote good accounting and ensure that financial statements are useful for different stakeholders in decision making. Following the numerous accounting scandals that rocked the accounting profession in the early 2000s, regulation emerged as an important aspect in professional accounting.
It is important to learn accounting ethics: non-teaching of accounting ethics leads to accountant’s unethical conduct and manipulative practices that result in financial scandal. Academic remedy to the ethical issues in accounting is necessary, it can assist in eliminating accountants’ crossing of ethical boundaries.
Enron, a commodity and energy-based service company, was in trouble for removing a massive amount of debt from its balance sheet. As a result, the shareholders of Enron lost $74 billion. Many employees lost their jobs. Many investors and employees lost their retirement savings. It is one of the most cited accounting scandals of all time.
Response Post
Student’s Name
Instructor’s Name
Course Code
Date of Submission
Response Post
It is true that the Enron scandal is a perfect example of how unethical behavior in the accounting profession can have devastating consequences. The lack of regulation and oversight and the availability of financial incentives allowed Enron to engage in fraudulent activities. This unethical behavior in the accounting profession revealed the far-reaching consequences, especially when financial mismanagement is involved. This highlights the importance of developing and implementing effective safeguards to prevent unethical behavior in the accounting profession.
From the post, I agree that organizations should promote a culture of ethical behavior by committing to ethical practices and ensuring that all employees understand the importance of ethical conduct. One way to prevent unethical behavior is to ensure that all organizations adhere to the highest standards of ethical conduct. This includes setting and enforcing clear policies and procedures to ensure compliance ...