Essay Business Ethics in Accounting - 1034 Words

In the past there [ ] have been several cases in the business environment related to the practices of accountants and auditors who have violated the trust and confidence of public. A number of researches have been conducted to find the potential factors resulting in unethical, biased or inappropriate decision making and judgments by the professionals. The aim of this paper is to review two academic articles and conclude on the reliability of the claims and assertions made by the authors. The research paper of Pflugrath, Martinov-Bennie Chen (2007) aims to analyze the impact of organizational codes of ethics on the accountants’ and auditors’ judgments and professional decisions making skills. The research is conducted on a sample of†¦show more content†¦In terms of aggressive client preferences, the code of ethics may help in better judgment by the professional auditors and accountants. In contrast Shafer, Morrid Ketchand (2001) suggest that in case of client’s pressure on aggressive financial reporting, â€Å"auditors’ ethical behavior influenced by economic or utilitarian considerations†. Shafer et.al., (2001) suggest that strong organizational norms should result in the standardization of behaviors. In this regard, the results of Pflugrath et. al. (2007) may be judged as fairly consistent that organizational codes of ethics may help in ethical decision making of employees and professionals in auditing and accounting fie lds. Unitary codes of ethics may help in standardization for the accounting and auditing professionals and may result in similar findings for the similar scenarios or situations that prevail in different companies or businesses. Pflugrath et. al. (2007) gives arguments which are more persuasive and compatible with the existing literature. The research methodology of both the papers provides reasonable assurance of the validity of their judgments, however, Shafer et. al., (2001) has weakness of the homogeneity of the values of the sample which is the major portion of the participants used for the research. The results, hence, may not reliable for the diversified population of today’s business environment where people withShow MoreRelatedEthics Of Business And Accounting1361 Words   |  6 PagesEthics in Business and Accounting Ethics are not simply something, which is embodied an individual s conviction or considerations, yet that of what is best for a conglomeration or organization. Moral choices good to go are took care of ordinary, and generally conglomerations have a made set of principles to encourage manage administration to make the right choice. Moral choices are not dependably simple and may require some supposed as to the responses or effect of a choice. There are establishedRead MoreImportance Of Ethics On Accounting And Business At Large2556 Words   |  11 PagesThe Importance of Ethics in Accounting Zachary J. Blake ACCT 302--B01 LUO 06OCT14 â€Æ' The Importance of Ethics in Accounting Abstract: Ethics are of the utmost concern within accounting and business at large. Ethics are the standard by which we make moral choices and decisions in our lives. In business and accounting, ethics give external users such as stakeholders, venture capitalists, and others a measure by which they can weigh financial statements and information to see if they are accuratelyRead MoreAccounting Fraud And Unethical Business Ethics Essay1931 Words   |  8 Pagesaccount to its executives such as Kenneth Lay, Jeffrey Skillings, and more. In 2000, its stock was rising by three to four hundred percent. Suddenly, Enron declared bankruptcy in December of 2001, which shocked people everywhere. Accounting fraud and unethical business ethics committed by the company were surfacing and thousands of people were losing their jobs and benefits. The route of Enron’s downfall was not the fraud, but the lack of moral compass within the founders and executives of the companyRead MoreAccounting for Busi ness Combination and Ethics Assessment981 Words   |  4 Pagesprinciple of consolidation accounting. Before the acquisition, Yung and Chum was a competitor to each other. Their financial statement only reflects their own financial position. Thus, the balance and transaction would state in the financial statement. The reason is that they are viewed as two entities from different aspect. However, after the acquisition, Yung and Chum became a single combined entity as Yung held 75% interest in Chum. It means Yung can direct business decision of Chum accordingRead MoreChapter 1 Managerial Accounting, the Business Organization, and Professional Ethics7756 Words   |  32 Pages | |LO1: Describe the major users and uses of |A1, B1 |33 |39, 40, 42 |55 | |accounting information. | | | | | |LO2: Explain why ethics is important to management|A3 |37, 38 |47, 49, 40 |51, 55 | |accountants. Read MoreEthical Issues Of The Managerial Accounting Profession1186 Words   |  5 Pagesdue to its complexity in today s business world it may generates sort of excesses that can negatively affect the business environment as well as the social life. Therefore, it becomes necessary to stress on the ethics and morals that should be prevalent in the business community. The term ethics in the business environment expresses the expected attitude of the individuals in organizations that carry out certain activities and services. Clearly, today’s business environment has obvious ethical issuesRead MoreEthics Standards And The Field Of Accounting950 Words   |  4 PagesProfessional ethics are an absolute necessity in the field of accounting. Businesses rely on accountants to accurately report their financial information and give sound advise and consultation in regards to their business. There are standards and rules set in place to ensur e that ethics and information is reported accurately. Laws and repercussions are created place to deter unethical and illegal accounting practices, although it still occurs in the business world on many levels. The field ofRead MoreEthical Issues Involving Information Accounting1193 Words   |  5 PagesIntroduction Ethical issues involving information accounting is a part of doing business and a large part of personal human ethics. Accounting ethics refer to codes or moral systems used to determine right and wrong in accounting. Accountants have a challenge with the arrival of information technology to observe business ethics in the field of accounting. Technology needs to be appreciated and used by accountants in the most important ways to improve efficiency, regulatory compliance, enhanceRead MoreEnron and Worldcom Case Study1225 Words   |  5 Pagesthe firm. Maintaining financial and accounting standards in the business practices are necessary. The profession of accounting has become a mockery due to the accounting scandals that took place all over the world in the last decade (Smith amp; Smith, 2003). The major companies involved in it are Enron, WorldCom, etc.          By means of the following paper, the reader will be able to understand the various reasons that are associated with the ethical accounting practices, reasons behind dissolutionRead MoreSNC-Lavalin Group Inc: Accounting Ethics1638 Words   |  7 Pagesï » ¿Accounting ethics Introduction SNC-Lavalin Group Inc. is an engineering and construction company headquartered in Montreal, Canada. It is one of the top five global design companies in the world. The company has been involved in major engineering and construction projects in the world in Canada, Madagascar, Australia, and Spain. The company has more than 30,000 employees and a turnover of over 6 billion Canadian dollars. Recently in March of 2012, the companys CEO, Pierre Duhaime resigned as