Essay about Accountant Responsibility

2423 Words Dec 4th, 2010 10 Pages
Research Paper – Accountant Responsibility
Introduction
Accounting by definition is “The bookkeeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business” (The American Heritage). An accountant’s responsibility is not something that is equally split or separated by category. It is not something that can be defined easily or without a lot of research and thought. An accountant responsibility is said to be between their clients, third parties, and the government itself, but it is also a personal responsibility. An accountant takes trust into their hands from others, and what is done with that trust is how an
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If an action on a financial statement is beneficial to the company, the accountant, the current shareholders, the owner, and yet in some way still harms the public in the long run because of the way it is being reported, then it is ethically wrong to post it in that manner. Even if the current owners or shareholders push to see it reported in that way, to ensure you keep your reputation as an ethical accountant now and in the future, it is to be reported as intended to show the truth. There will be times when it seems more beneficial, monetarily, to yourself to take advantage of grey areas and loop holes that are given. Reread the last sentence and understand when the word “seems” is there, in reality, the benefits do not exist in the long run. • Responsibility to the government An accountant’s responsibility to the government starts and ends with following the laws given and the regulation specified by the government. The regulation laws that deal with accountant responsibility are many but the main ones are the Sarbanes-Oxley Act of 2002 (SOX) and the Securities Act of 1933 & 1934. Criminal acts made by accountants that are punishable by law and could result in a fine or even going to jail include but are not limited to willful violations, wrongdoing in the preparation of tax returns, and even violations of the security laws (Beatty & Samuelson, 2010, pg. 383).
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