Acc 601 Week 3 Assignment

1. Is there an ethical violation, dilemma or concern and, if so, what is it?

A. (2.) Analyze the ethical issues at stake in the scenario and distinguish from legal matters.

The ethical dilemma happened because the leadership within the company

What principles would you need to be aware of when dealing with the ethical dilemmas in this case study?

The requirements of the applicable financial reporting framework relevant to accounting estimates, including related disclosures

Many companies have ethical decisions that need to be and sometimes those decisions can affect many individuals or just a few. Making ethical decisions may be placed solely on one person’s shoulders or it may be a decision that multiple individuals must be involved in. There are several ethical issues in the Richardson Drilling case that should be considered. For instance, bribery, purchasing substandard parts with lack of disclosure that causes injuries, and revealing sensitive information. One potential ethical concern that could arise has to do with ongoing health insurance and the employer’s responsibility.

The Treasurer will prepare monthly and annual financial reports for distribution. The reports may include: balance sheet, statement of income and expenses, budget versus actual report for each program which has an established budget, a budget versus actual report for the organization, accounts receivable aging, accounts payable register and aging, cash flow projection, and any other requested reports.

The ethical considerations are both personal and professional. Personally, the decision to make the entry would be dishonest and

• Business Ethics: We knew this problem since October, but tried to hide it with the hope that it will fade away. We will be scrutinized from an ethical perspective.

There is a fine line between what is ethically right or wrong with an action committed by an organization. According to Audi, “sometimes ethics is compromised without dishonesty but by deficiencies in clarity or candor or both” (Audi, 2009). Being dishonest and not telling the entire truth are examples of ethical dilemmas.

I would deal with this ethical dilemma by following a ‘procedural based approach’. I would use this method because it is the most through and objective of all of the other approaches. I feel that when dealing with someone’s life the most objective procedures should be employed as to keep any emotions out of the equation. If these methods can be used this ethical dilemma can be both solved and no values or principles will be compromised.

The ethical dilemma Bob faces in this case is a transaction that makes Bob question his and the company’s ethics and legal obligations. It’s February, business was slow, the company was $5,000 below their breakeven point, and it appeared as if a

Issue involved is the tussle between the ethical and commercial considerations, but it is believed that

The answer to the question about the nature and the function of the company financial report has been attempted to be answered over the years. According to Alexander (2011), the conceptual framework for financial reporting (Conceptual framework) is defined as a scheme of systematic thinking which provide not only the definition but also the solution to accounting issues. Meanwhile, it is seen as a tool of help standard setter (IASB) to develop and revise reporting standards. It is a reference to prevent standard setter from confusion like fire fighting while they face accounting questions, for example if some item can be defined as asset. In fact, the status of the conceptual framework is higher than the specific standard and more precisely, it is seen as a guidance for

A company prepares financial statement to provide information about its financial position and performance. This information is in turn used by a wide range of stakeholders (such as investors, banks, customers, suppliers etc) in making economic decisions with respect to respective economic interest in the company. Typically, in terms of ownership by investment in shares of the company, shareholders though own the company but do not manage it. Therefore, the shareholder and other such stakeholders to get comfort in taking sound decision need independent assurance from the auditors that the financial statements reflect true and fair view of the company affairs in all material respects. Hence, in order to enhance the level of