Accounting and Ethical Practices

Establishing corporate policies and addressing issues of corruption within the organization that set an example for all employees to follow is important. Canada may prosecute the individual and the business involved in bribery.

This post will discuss two ethical accounting dilemmas that could occur in the CPA profession. For each dilemma, it will explain how the dilemma could be resolved based on logic and reason. It will then support that proposed resolution through support from the American Institute of Certified Professional Accountants (AICPA) Code of Professional Conduct.

A risk-based approach will be used to determine when pre-employment background screening is appropriate and the level of screening or review based upon the position and responsibilities of the subject employees and subcontractors. It should be clear to that compliance is important, therefore, compliance matters will be included in meetings. The intentions of the board regarding compliance will be made clear to management and employees. The measures taken by a service provider will be reviewed in order to protect the consumer’s

Although, the new AICPA code combines eleven understandings below the principle to provide more guidance on regulation matters. These forgiving are an extreme amount that allow for moralistic details resolutions formed below the prior code. They consist of: 1.700.005, "Use of the Conceptual Framework for Members in Public Practice and Ethical Conflicts"; 1.700.010, "Customer Competitors"; 1.700.020, "Unveiling Information From Previous Engagements"; 1.700.030, "Revealing Information to Persons or Entities Associated With Clients"; 1.700.040, "Uncovering Information to a Third-Party Service Provider"; 1.700.050, "Revealing Client Information in Connection With a Review of the Member's Practice"; 1.700.060, "Divulgence of Client Information to Third Parties"; 1.700.070, "Revealing Client Information During Litigation"; 1.700.080, "Unveiling Client Information in Director Positions"; 1.700.090, "Revealing Client Names"; and 1.700.100, "Unveiling Confidential Client Information as a Result of a Subpoena or

The impact the Foreign Corrupt Practices Act had on society was pleasant since it restored buyer confidence in the United States and restored the integrity of the United States market by implementing honesty in transactions. Yet it imposed too many disadvantages for the economy and corporations. The Foreign Corrupt Practices Act focuses on large fraudulent payments made by a business, therefore anyone involved in the financial, accounting, and executive department are impacted the most. Other major stakeholders affected include the board of directors, shareholders, employees, government officials involved, and foreign officials or foreign companies involved. Everyone is affected because the codes of conduct, and the companies’ values needed

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

On April 21, 2001, Lee Farkas, the former chairman of a private mortgage lending company, Taylor, Bean, & Whitaker (TBW), was convicted for his role in a more than $2.9 billion fraud scheme (Schoenberg, 2011). This action contributed to the failures of Colonial Bank, one of the 25 largest banks in the United States, and TBW, one of the largest privately held mortgage lending companies in the United States. According to court documents and evidence presented at the trial, Farkas and his co-conspirators engaged in a scheme that misappropriated more than $1.4 billion from Colonial Bank’s Mortgage Warehouse Lending division and

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.

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,

In order to determine the correct course of action for our department, the managerial accountants have

Since Midwest Sparkleen has experienced new management I have spoken with you on six different occasions to express my concerns about the cleaning of our offices. During those conversations we spoke about areas that need to be attended routinely and that no toxic chemicals should been left in any public place. Twice in the last three months you assured me you would discuss these issues with your workforce. However, today, I write regarding a more severe problem. On Friday an employee arrived to work and found the building had not been locked. With your crew there on Thursday night and the last to exit the building, under our contract, it was their responsibility to make sure the building was locked, secure and protected.

The authors do not intend to iIIustrate either effective or ineffective handling of a managerial situation. The authors may have

If management and the board of directors take appropriate remedial action, should Barber be required to report the matter outside the company?

Discuss what the management at M&M can do to more effectively manage situations like what occurred in the case.

This does not set a good example for the employees and can be harmful to the future of the company. Ensuring that bribery stops can solve many of the problems discussed above. Some feasible solutions are being recommended to help the company in both short term and long term. First of all, all employees including managers should be given training and education about bribery, corruption and what’s deemed illegal according to the law. Explicit measures should be suggested on how they can avoid supporting corruption and also where they can report to in case a situation where dishonesty is involved arises.