Ethical Codes Of Conduct Are Secondary Thoughts

1531 Words Nov 18th, 2014 7 Pages
Enron, WorldCom and Bank of Credit and Commerce, just to name a few, runs chills up and down the spines of, well, just about everybody. These scandals swirled around several large businesses, and hinged on unethical practices – unethical accounting practices, specifically. The idea of ethics is a hot button these days in all genres. In fact, universities and colleges are including ethics in the curriculum of every discipline instead of offering an ethics major, per se (Kanaiah & Kumar, 2009). It seems that ethical codes of conduct are secondary thoughts after the critical elements of a chosen discipline, when in actuality; ethics are a common thread across the disciplines. When considering accounting and ethics, the implications of poor performance has the potential to affect many different classes of stakeholders. Contemplating auditors, solely, raises the ethics issue to a whole different level in that he or she is responsible for assessing the viability of a business’ financial wherewithal. To that end, an auditor must gain an understanding of the company, its operations, financials and any known fraud committed; become familiar with its internal controls; evaluate any variances in account balances or other transactions; confirm inventory counts; and confirm third-party accounts and transactions (Herrick & Barrionuevo, 2002). To be clear, auditors do not assume the responsibilities of management. They do not, among other things, take control of any client…
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