Effect of Unethical Behavior Article Analysis
February 4, 2013
Unethical Practices and Behavior
The business environment can be a cause for unethical practices and behavior in accounting. An example of this can be management instructing an employee to record a transaction in an incorrect manner. It can be as simple as a company whose clients sign a contract on December 1, 2012 for the year. Then reporting the revenue for the whole year in December instead of just reporting the month of December as would be the requirement of accounting principles (Kendra, 2013). Another cause for unethical practices or behaviors can be greed. Some people will do anything, including breaking the law to get extra money. An accountant has an opportunity to “cook the books” (Xaxx, 2013) that can allow they to take a little or a lot. This is very tempting as no one seems to get hurt in the process. At times ignorance of the tax law or regulations about insider trading can be easily misunderstood by inexperienced accountants, which could cause unethical behavior without even realizing it. The role of an accountant is to use information the company provides to gather useful information about the company’s economic affairs. This can be difficult if there is a conflict of interests. If the accounting firm hired to perform a profit and loss audit finds that the information it has to report will be damaging to their client the accounting firm’s responsibility is to provide accurate information for the shareholders and the public. This could be a conflict of interest because the accountant may feel a loyalty to the company even though the company is paying the accountant the loyalty is to the shareholders and the public. To each person integrity and ethics can mean different things. This can cause business situations to be approach by different ethical vantage points. The American Institute of Certified Public Accountants (AICPA) has...
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