Applying Ethical Models Of The Accounting Field General Accepted Accounting Standards Advisory Board Essay

The utilitarian approach takes all the stakeholders into consideration and prefers the “…option that does more good than harm to stakeholders”. (Ethics Video 1) In this case, Luke must analyze which decision will create the most value and benefit for the stakeholders which include some of the following: investors, employees, ABC’s reputation and partnerships, Owen, and the person buying the house from his brother.’

The method of ethical decision making which was developed by Dr. Cathryn A. Baird presented two components contained in all ethical decisions which are; The Four ethical Lenses and the 4+1 Decision process. The Four Ethical Lenses issue claims that different ethical theories and the means in which we tend to approach the situations which form part of our ethical traditions are looked at in four different perspectives. From each perspective there are different values on which to decide whether the action taken is either ethical or not and each lens also lays emphasis on determining whether the decision made is of ethical requirement. In the 4+1 Decision Process, people who are responsible for making final decisions in an organization do it

Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the

GAAP stands for Generally Accepted Accounting Principles. This is a key component to know in any business. GAAP is based on established concepts, objectives, standards and conventions to guide how financial statements are prepared and presented. GAAP’s objective is to provide information that is useful to investors, lenders, or others that provide resources to a company or not-for-profit organization. GAAP includes principles on a few things. One is recognition. Recognition is defined as what items are to be listed on the financial statements. This includes assets, liabilities, revenues and expenses. The next is measurement. This refers to the amounts that need to be reports of each part of the financial statement. Another is presentation. This refers to what is displayed and listed on the statement and how they are organized. And lastly there is disclosure. This includes the specific information that is the most important to the people that utilize the financial

Ethics are crucial to the accounting profession and the business world, so choosing an ethics system to base your moral decisions on is extremely important. Accountants and all business professionals will be confronted with moral dilemmas on a daily basis. Being strong in your faith and knowing what you believe in will help you to always make the right decision. Based on this reasoning, this essay will explain why deontology is the best ethics system for the accounting profession.

Ethics in any industry is important, but for Accounting professionals and those in need of their services, it is a particularly stressed element. Information provided by accountants is used to make major decisions, including investing, downsizing, expanding, etc, so accountants are expected to be competent, reliable, and have a high degree of professional integrity. Because of these high expectations, the professional accountancy industry, like many other professions, has adopted professional codes of ethics (Woelfel, 1986). These ethical codes go above and beyond the requirements for state or federal laws and regulations. There are several professional organizations within the

The study is important because it examines the role of ethics in accounting. The research on identified problems is necessary due to vagueness of ethics concepts and its difficulty to

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,

Generally Accepted Accounting Principles are standards in accounting that are used in America to enable the recording and reporting of financial information in a uniform way. These standards are established by the Financial Accounting Standards Board with is the body that is responsible for developing and establishing these standards in the United States. Currently, the body is mandated with the task of setting up accounting standards for non-governmental organizations. While GAAP is mainly used as the accounting standards for financial recording and reporting, the source of this principle originates from various places because there is no single reference for them.

GAAP (Generally Accepted Accounting Principles) determine the content and format of financial statements. SEC (Securities and Exchange Commission) requires publicly traded companies to issue annual audit. Concerns are about adequacy of disclosure; and behavioral implications are secondary.

Management constitute amongst major components of a company, organization or a business. As such, management oversees employees interactions with their supervisors and also control of people within a particular organization. Also, it includes critical and ethical decision-making process so as to address various ethical dilemmas experienced by employees while undertaking their respective assigned duties within the company. Ethical dilemmas are hereby to stay as issues usually arise now and then and place a variety of options that bear different repercussions. Therefore, it calls for ethical and critical decision-making skills so as to make the most appropriate option that bears more benefits in comparison to other options presented. While making ethical decisions, it 's substantially important to play heed to a certain ethical decision-making theory. This would enable an individual making the decision to ripe best possible consequences rather than living to regret. Moreover, ethical decision making is typically important in business as making a wrong decision may result not only in huge losses but also poor relationship amongst colleagues and miserable life for employee(s) working in a particular company or business in question.

In today's business and personal world, ethical decisions are made on a daily basis. Most of these decisions are based on company ground rules. The others are based on personal ground rules. All decisions can have a number of ground rules that help us determine whether our decision is ethical or unethical. Each decision whether it is based on company or personal ground rules will have its own set of implications. In the following paragraphs I will discuss the impacts of ethics on decision-making, discuss the elements of an ethically defensible decision, define what the ground rules are; what they could be and what they should be, discuss

Ethical issues have greatly transformed in our lives since the great Enron, Xerox and other huge corporations proposed big profits showing earnings of billions of dollars and yet in reality facing bankruptcy. These corporations faced great trouble with the federals and state for manipulating financial statements. But not only corporations can be blamed on this, accounting firms were involved in this as much as the corporations were. With the business stand point, ethics comprises of principles and standards that guide behavior. Investors, traders, customers, and legal system determine whether a specific action is ethical or unethical. Ethical issue is a vast subject, but we will look at the niche

As long as the largest quantity of people is receiving the greatest benefit as a result of a particular action, that action can be rationalized. With a greater understanding of the two major ethical systems proposed for the accounting profession, the evaluation of those systems becomes simpler.

GAAP is exceptionally useful because it attempts to regulate and normalize accounting definitions, assumptions, and methods. Because of generally accepted accounting principles one is able to presuppose that there is uniformity from year to year in the methods that are used to prepare a