That's true to a point, but accountants also play a role as the watchdogs of the business world. They're responsible for making sure that businesses report their finances clearly and according to recognized standards, and that often puts them in situations that can be ethically or even legally dubious. Pressure to Manipulate the Figures Running a business puts you under a great deal of pressure, especially when things are not going well, or at least not as well as you need them to go. When that happens, the temptation to lean on your accountant to fudge the numbers can be hard to resist.
Solving Ethical Dilemmas in the Accounting Profession Essay Abstract The accounting profession like any other is governed by code ethical principles that determine how decisions are made and actions taken. This is because of the fact that professions are established primarily to serve the society, the services provided to the society are so crucial that, high standards of expertise and integrity are required.
This is important because whenever dealing with the public maximum credibility is always very important as it helps to builds public trust. Based on the Stakeholder Impact Analysis and the philosophical approaches to ethical decision making [Bayles, M.
Introduction Based on the American Institute of Certified Public Accountant AICPA regulations on Certified Public Accountants code of ethics it is an irregularity to manipulate an audit to suit the demands of the employer, the client, or any other investor or non-investor stakeholders.
Bakers Greenleaf is one of the Big Eight accounting firms with prominent accounting professionals such as Oliver Freeman and Daniel Potter and others alike.
However, a special audit on a wholly-owned real estate subsidiary Sub that was assigned to Dan poses an ethical dilemma to him Dan and also to the firm. In the course of the audit Dan comes across a problem — he discovers that the owners of the Sub have overvalued one of its real estate properties.
However, his decision draws severe reprimands from his senior — Oliver Freeman. The Senator Metcalf call for nationalizing the accounting profession resonate sin him as the only alternative to the dilemma.
All these stakeholders are entitled to a substantial stake in the Sub, based on its performance, and therefore a true and fair audit is one of their rights.
The actions indeed led to the creation of a mountain as Dan was negatively evaluated and could not find an impartial forum within the organization Baker Greenleaf to air his sentiments. However, the best thing Dan would have done was to first seek a dialogue with the personnel department whom he termed as ineffective, and then irrespective of the outcome of the dialogue with the personnel department, Dan would then write or personally visit the office of Senator Lee Metcalf in order to help set the stage for a more long term solution to the problem nationalizing the profession.
The reasons behind this decision are obvious, that according to a report that was released by the same Senator Metcalf indicating that despite constant revisions to regulations governing the accounting profession anomalies always cropped up. But on the other side of stakeholders it will impact them negatively.
The applications of these fundamental principles always leads to the creation of public stakeholders interests as well as the interests of the profession and that of the members of the profession.
It follows that some stakeholders those benefiting from false audits will be negatively affected by such a new move but majority of the stakeholders will benefit. For instance, potential buyers will not be conned into paying more for overvalued houses, credit institutions will be saved the risks of extending credit to organizations that exceeds their credit worth, passive business partners will get a clear picture of the business performance and hence make wise decisions on whether pull out, hold on, or to invest more, employees will get a clear glimpse of the fruits of the efforts, city planners will get a clear picture of the tax to levy on houses relative to their true values.
As it is with many changes the vision of nationalizing the profession also will bring other positive and negative impacts to the stakeholders. However, the decision to consult Senator Metcalf would bring along term solution to the accounting irregularities and therefore increase the stakeholders trust.
Wadsworth, accessed on February 28, Behrman, J. Essays on Ethics in Business and the Professions. Prentice-Hall, accessed on February 28, Brooks, L. London, England, available at; www.This is “Ethical Issues Facing the Accounting Industry”, section from the book Accounting for Managers (v.
To help guide accounting professionals through ethical dilemmas like the one at Drive Write, the Institute of Management Accountants (IMA) has established a Statement of Ethical Professional Practice. Jun 29, · One final ethical dilemma accountants may face is the thorny question of when to blow the whistle on a company or a division that's unethically manipulating or misstating its numbers.
When creating a code of ethics from scratch, include guidelines on acceptable behavior, examples of ethical dilemmas and solutions, implementation and cost details, and the consequences for misconduct.
It can be tempting to lie low and not make waves when confronted with ethical issues in accounting. Solving Ethical Dilemmas in the Accounting Profession LaKeesha Lawler ACC/ January 14, Dan Jensen Solving Ethical Dilemmas in the Accounting Profession The Dilemma of an Accountant Baker Greenleaf was one of the Big Eight accounting firms.
Ethics in Accounting – Argumentative Essay Sample. Published by admin under Essays,Samples. based on ethics in the accounting profession. A number of ethical issues are identified and discussed herein.
One clear issue that is depicted from the extract is a lapse in inadequacy on how to overcome dilemmas in accounting ethics. The. Final Project: Solving Ethical Dilemmas in the Accounting Profession Resources: Appendix A, Appendix C, and Business & Professional Ethics Read the Dilemma of an Accountant Ethics Case on pp.
(Ch. 4) of your text.