Review of Accounting Ethics

Abstract

The current business environment is scandal ridden and the people in the business community act and operate it in a way that it leads to the presence of unethical behavior. The people in business have not become immoral suddenly; the context of corporate decisions has changed along with the demands which are made on the organization.

Abstractii

Introduction1

Discussion1

Current Business Climate1

Accounting Ethical Breach in Sundance & Cassidy Ltd3

Identifiable Ethical Issues3

Key Parties4

Basic Ethical Principles of Accountants4

Recommendations4

References6

Review of Accounting Ethics

Introduction

This research paper is focused on assessing the current business and regulatory environment for ethical behavior. It also describes an organization in which there has been an accounting ethical breach along with providing measure regarding the actions which can be taken in future to prevent these problems.

Discussion

Current Business Climate

In the prevailing business environment which is scandal ridden, it is helpful to know that the business community has people to act and operate with it which has always led to the presence of unethical behavior (Schlender, 1982). The dismay and shock that the entire society feels regarding the collapse of WorldCom, Health South, Tyco, Arthur Andersen and Enron sheds light on the indignity which looks unfamiliar. These troubles makes a person wonder how these unethical behaviors have been so common in businesses. These business communities are established by their nature to serve the interest of public by providing a service of product to the daily life. For example, a certified public accountant is provided with a special certification by each of the state government as being the agent of public. This certification results in the responsibility to establish and maintain the trust of public (Williams, 2002).

However, the events that took place in these companies have led to question the level of responsibility. This rise in the corporate irresponsibility can be understood by stating that the people who are in business have not become immoral suddenly. The contexts in which the corporate decisions are made have changed along with the demands which are being made on the business and the nature of what seems to be the proper conduct (Caroll, 1996). Behram (1981) in his study regarding business ethics also offered a similar struggle by linking the rising tension to the conflicting needs of qualitative ethics and the quantitative plans which the management is forced to integrate. There are many factors which need to be considered to provide an accurate and correct assessment of the development which lead to these contradictions. The first step that seems appropriate is to start an empirical study to determine if the business ethics have declined. However, ethics are qualitative in nature due to which their quantitative study of their rise or decline is not possible (Caroll, 1996).

There has been a shift in the nature of accounting and rather than been considered as a steward of trust and interest of public, the accountant is considered as a provider of timely and accurate information and as long as he s following the prescribed instructions, his information will be acceptable to ...