Essays on Ethics In Accounting

Ethics in accounting is a high profile issue due to the numerous corporate scandals that have taken place in many organizations resulting to massive damages to the economy. In particular, these scandals question the morality of accountants. Many reports have argued that accountants have the main responsibility for ensuring continued ethical standards in business. The state of ethics of accountants today is in a critical position because of the numerous audit failures that have been there in various organizations. Recently, there have been a number of financial scandals facing organizations from all over the world. Among the most recent ...

A Pharmaceutical Corporation expects to have several current notes receivables after the end of this financial period. In spite of the company’s certainty to collect the notes receivables, the transaction may be delayed by one more accounting year. Due to this prospect, the controller is compelled to re-categorize the notes receivables as non-current. Besides, the corporation’s accountant acknowledges the delay of the collection, but she does not favor the idea of re-classification since it will lead to a drastic decrease of the current ratio from 2.5:2 to 9:2. This reduction in current ratio will have negative consequences ...

Accounting refers to the activities of recording, summarizing, maintaining and publishing financial statements for public, etc. These activities play a vital role not only for internal users of the information but also for the external users who might raise issues and concerns to the work being carried out. It is essential for the investors to get the correct picture of the business before taking the risk of investing in the venture. The ethical practice also enhances the performances and procedures of the organization. Ethics relate to segregating what is good or bad for the consideration of the moral duties ...