Business Research Ethics Essay

The history world is changing ever and so are the rules that are being set up to trea positive(predicate)ly companies and their assets. There are codes of conduct that accounting offices and their personnel must dumbfound to and when they are non followed, thither can be an ethical challenges that you wear to deal with. Users of accounting information perform different types of creative accounting. rough of these practices are ethical and legal and other are not. It is burning(prenominal) for a play along to set up procedures that check and double check everyone in the accounting department from the clerks to the Controller. There is neer a time in any business that someone is allowed to do things without having someone else check on their work.When thither is no follow up or checks set in place is when the company finds themselves in trouble. As accountants, we are required to show sure that the work that we produce is accurate, credible and true information. This inform ation is utilise to ease perpetrateors and banks to founder a good business decision in regard to their credit and investment opportunities. Many times, an accountant will plump creative with the numbers to assure just that outcome. The numbers are noble-minded to show a better financial picture and this will help the company get more silver and have the bank invest more in their future.Sometimes, this can go on for a foresighted time without anyone sagacious it is all false. Other times, companies get caught. May I remind you of Enron? Over the years stockholders and investors have lost large amounts of money due to false reporting or creative accounting. It is for this reason that the compulsion for restrictions on those practices and find a solution to this problem became necessary.A company that I worked for in the past had to eventually file for bankruptcy beca practise the executive director Board was unaware of what the Controller was doing. Many of us were aware o f the incorrect numbers and were not sure how to handle it because we could not really heighten that the numbers that he wasreporting were actually wrong. There are procedures in effect that prevent accountants from doing this, but not all companies follow them. This is why auditors are used with many another(prenominal) companies. Auditors are there to make sure that all numbers and documents are proven to be correct and that there is no creative accounting or inflated numbers when feeling at financial statements. Auditors can also be a chip for theft.If there is never a check and balance with an accountant in a company, there can be a greater observe of theft. I know of a company that I worked for suffered a way out of over $50,000 because the Controller was not required to get a siemens signature on checks under $5,000, so he issued himself eleven checks in the amount of $4,000. He would take the check and record that the check went to a vendor or supplier. When the bank statement was sent to our office, he would do the bank reconciliation, so no one saw the actual scrub check because he destroyed it. Had there been an auditor that would be checking his work, this never would have continued to happen, they would have found it after the first check. It is important accountants to maintain integrity and avoid questionable situations. There are many things that can be seen as inappropriate.Many times over the years, I have been offered tickets to baseball games, dinners, gift baskets, etc. to use a grumpy company as a major supplier or to use a certain bank. I never thought much of judge a gift basket, but I was told by an auditor for our unfaltering that can be misunderstood and never to do that. This is a footling scale, many companies have been known to get government contracts or larger jobs because of making certain promises. Research has proven to our executives and investors that the only way to make sure that there is no inappropriate beh avior by having ingrained and external auditors to examine the books on a regular basis. Knowing that there are audits completed on a random basis and knowing that those audits are being audited by external companies prevents mishaps, theft and misappropriation of funds.Having a unfastened set of policies and procedures in place and also having a clear plan of action for employees that do not follow these procedures is a sure way to insure that your company is protected. GAAP (generally accepted accounting practices) defines what is and is not permissible, but it is not infallible. GAAP can be manipulated and subject to variation and accountants can commit fraud any time. Eventually, we have to count on good accountingprocedures, our auditors and most importantly, employee ethics and morals to keep everything and everyone in line.REFERENCESAl Momani, M. A., & Obeidat, M. I. (2013). The effect of auditors ethics on their detection of creative accounting practices A field study. In ternational Journal of line and Management, 8(13), 118-136. Retrieved from http//search.proquest.com/docview/1418426106?accountid=458 Leung, E. C. (2004). Accounting ethics. Business and Society, 43(2), 226-226+. Retrieved from http//search.proquest.com/docview/199387513?accountid=458