The Ethics Of The Accounting Profession

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The accounting profession is perhaps one of the most diverse of them all. Not only are there many different accounting functions such as financial reporting, auditing, accounts receivable, budgeting, investments, analysis, or fixed asset accounting (to name a few), but there’s the fact that accountants are needed for almost every business in every industry. So it comes as no surprise that these are positions with great responsibility. Accountants are often called the gatekeepers of a business’ financial system and rightfully so! They are the ones who are responsible for keeping numerous records and backup of all financial transactions. Accountants are the ones who must keep a watchful eye on the financial health of an organization and who report the financial position with clear and unadulterated statements. Unfortunately, there are those who for a number of reasons are tempted and pressured into manipulating accounting entries so that the financial reports do not accurately reflect the company’s financial position. One of the largest problems accountants experience today is the pressure to commit fraudulent accounting practices. There are a variety of factors involved in the likelihood of fraud, but certain circumstances seem to be better predictors of the possibility of fraudulent reporting. In this paper, we will examine one of the largest hallmark scandals in history. Using this example as the backdrop, we will then discuss the circumstances in which the risk
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