Marshall (2004), "accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements" (p. 3). Specifically, financial accounting "refers to the process that results in the preparation and reporting of financial statements for an entity" (Marshall, McManus, & Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a Certified
Ethical and Legal Obligations Ethical and legal obligations apply to all members of society. As one in society, the obligation to act in an ethical, law abiding manner on a daily basis is vital to the integrity of daily life. Many professions have their own code of ethics. Financial reporting is not exempt from such ethical and legal standards. One’s lively hood depends on decisions made in the business world. Business transactions are done daily and can impact one’s economic stability.
New advancement in technology has made it easy for many CEOs to have the opportunity to loot their companies, and to engage in accounting irregularities. Technology has made improvements to the way a company does business with others, and also it has opened up ethical concerns for the way a company conducts their business. “Recently, accounting professionals have been placed under immense pressure by changes in the size and scope of financial markets” (Love, 2007 para. 1). Companies use the financial
Andersen and Clarence Delany by the name of Andersen, Delany, & Co. In 1918, it was given the name Arthur Andersen & Co. The company supplied tax, consulting services and auditing for the large business, and itself had a position in the "Big Five" accounting firms. In 2002, this firm was found guilty for auditing an energy corporation, Enron and it surrendered back its rights of auditing. This led to Enron 's bankruptcy and loss of 85,000 jobs. Any type of business development requires constant planning
In this paper, the writer will evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm
In this paper, the writer will evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm
Ethics and Legal Responsibility in Accounting The profession of accounting has become spotlighted by the events in recent years including namely Enron. The ethical behavior of businesses is becoming increasingly scrutinized at every turn. Thus it is important to specify the nature of conducting accurate and ethically in accounting and how this can be of subsequent benefit to the company as well as the business world in the long run. The definition of accounting according to Webster 's dictionary
Morris, 2011). In the end, reporting the sale in 2010 would place Excello under fire by the SEC for repeated violations of the SOX act. The theoretical gain would ultimately cause distress for Reed as well as Excello’s accounting team. In conjunction with the SOX act, the accounting team needs to adhere to GAAP regulations. One of the most important regulations Excello should be concerned with is revenue recognition principle. The GAAP standard for revenue recognition principle determines the specific
ACC2CAD COST ACCOUNTING AND DECISION MAKING SEMESTER 1, 2011 MINI CASE STUDY 1 DISCLOSURE OF CONFIDENTIAL INFORMATION; ETHICS Page 1 Recommendation Page.3 Executive summary Page.4 Introduction Page.5 Analysis Page.6 Recommendations and conclusion Page.7 Appendix 1 – Code of Ethics for Professional Accountants Page.8 References Page.9 Page 2 Recommendation Erin should notify Smart Worx of the postponement
Enron, a Discussion on Ethics and Law Leadership’s Role in Ethical Dilemma As documented in a promotional video for Enron, Kenneth Lay states: “Enron is a company that deals with everyone with absolute integrity. We play by all the rules. . . We want people to leave a transaction with Enron thinking they have been dealt with in the highest possible way, as far as integrity and truthfulness and really doing our business right.” (Enron Vision and Values, 1998, 3:32) Whereas this message was intended