Ethics Article Review

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Ethics Article Review

Ethics Article Review
The topic of ethics usually revolves around business practices. Included in these businesses practices are accounting and financial decision-making. Both of these require high standards of ethics as many people rely on the information produced by them. The lack of ethics results in misinformation and the lack of trust. This paper will first provide a brief summary of an article that discusses ethics in accounting and financial decision-making. After that, this article will be related to assigned readings and to an organization’s current accounting practices. In addition, there will be a discussion on the importance of ethics and The Sarbanes-Oxley Act in accounting and financial decision-making. Article Review

The article reviewed is called Ethics Failures in Corporate Financial Reporting by George J. Staubus. This article focuses on lapses in ethics that result in the failure of the accountants and management to fulfill their financial responsibilities in an organization. “Accounting failures are failures of individuals to perform their fiduciary duties, to fulfill their responsibilities, to behave ethically” (Staubus, 2005, p. 5). This article also aims to show that corporate accountants are not solely responsible for their unethical practices. Auditors, academic accountants and members of standard-setting bodies are also partially responsible for the eventual ethical breakdown. This week’s assigned readings briefly touched on the topic of ethics in accounting. The recent scandals of Enron and Tyco all stem from the failure of ethical accounting practices. The public depends on these financial bodies to represent a true picture of an organizations financial position. The failure to do so has caused the public to lose trust in their abilities. Financial bodies and boards like the Securities and Exchange Commission (SEC) and the Auditing Standards Board have taken measures “to increase the...
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