Ethics in Accounting

1212 Words Dec 13th, 2012 5 Pages
Ethics in Accounting
By

Pace University – New York
Accounting for Decision Making, MBA 640
Fall 2011

Required Research Paper







Page 1 of 11




Table of Contents
Number Content Page Number
1 Introduction 3
2 Ethics in Accounting 4
3 Enron Scandal 6
4 Satyam Scandal 8
5 Conclusion 10
6 References 11









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Introduction

• What is “Ethics”?
Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc.
Source: http://en.wikipedia.org/wiki/Ethics

• What is “Accounting”?
Accounting is basically maintaining and providing
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Governments loses great amount of taxes and investors lose their hard earned money which they invest in a firm to get benefits and profits in the future.

Accounting associations around the world are coming up with strict rules and guidelines to prevent accounting frauds. They suggest internal audits and controls to prevent any fraud or unethical behavior by a firm’s employees and higher authorities.

The Enron scandal in USA and Satyam scandal in India are considered to be one of the most noted scams.
Source: http://www.top-term-paper-sites.com/essays/ethics-of-accounting.html







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ENRON Scandal
ENRON was a multinational company founded in 1985 in Omaha, Nebraska in USA. It was mainly an energy company that was also into petro-chemicals, plastics etc. Merger of two companies, namely, Houston Natural Gas and InterNorth Inc. formed ENRON. Soon after the merger ENRON became the ace of Natural Gas Industry. It spread its operations across the globe including India. Though in India, it failed due to political issues, but ENRON succeeded great in USA.

The ENRON scandal is considered to be one of the most notorious scams in the history of USA. It shocked the USA and world. So, what did ENRON do?

ENRON got deregulated by the government because ENRON showed fake and inflated accounts. It mislead its investors and employees. By misrepresenting earnings…