Accounting Ethics

* Bo and Mo do explicitly say that it is up to Kevin to decide how to increase his productivity.

Describe the ethical issues presented in the case. Discuss how these ethical issues impact accounting choices or the fair reporting of accounting information. Highlight the role accounting can play in ethical decision making.

Another important point is the reporting to whom. Financial accounting is meant for external reporting to all who are interested in the company’s activities. But in management accounting it is altogether an internal reporting aimed at helping managers in discharging their responsibilities.

Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses forced regulators to revise the conceptual framework of accounting processes.

Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys

Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations, financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers, employees, and the general public. A CPA has to be responsible for their audits and take any punishments as a result of their mistakes, incompetence or illegal actions. CPAs are expected to have integrity in their work,

1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer

The ethical issue/event that I will be analyzing occurred between Livent, which previously was a theatre company in the 1990’s and Deloitte who is their former auditor. Deloitte failed to detect fraud and have been ordered to pay damages to the company’s creditors. This case of fraud included improper and inaccurate financial statements that were signed by Deloitte. Livent were using these financial statements to solicit funds from creditors and investors; they had ‘cooked the books’ or overstated their earnings/understating their losses to depict their company as if they were financially strong. Creditors invested their money into Livent and had later suffered a great loss because the company ended

1) The discipline dealing with what is good and bad and with moral duty and obligation

Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer

Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line).

Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms? Briefly describe each and use examples.

Bitcoin now has the largest market capitalization among all kinds of crytocurrency. Bitcoin 's success has generated a number of other crypto-currencies including Litecoin, Peercoin, and Namecoin, etc. Bitcoin, an electronic currency, is established by computers producing a string of unique numbers through complicated math problems. Bitcoin is sold on unregulated exchanges and acknowledged by an increasing number of people and businesses due to the fast speed and low transaction cost. One Bitcoin is now valued at about $500 and other crypto-currencies hold less value. The trend is that cryptocurrencies are attracting more interest as potential investments. A distinguishing feature of crypto-currency is that it is not issued or backed by government. So it is difficult for government to manipulate or interfere with. Governments around the world hold different perspectives

Researcher: I am a student pursuing accounting in my studies and am doing a research on accounting ethics. I’d like to get your assistance in doing my research

1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer