Accounting Ethics
Assignment 1: Review of Accounting Ethics
The New Zealand Institute of Chartered Accounts (NZICA) represents over 33,000 members in New Zealand and overseas. The organization audits private companies and public companies that are members of the organization (Graham, 1960). In October 2012, the organization was found to be practicing breaches of accounting with its members when an employee of the organization was found investing in different companies using client’s money. The loans were supposed to be short-term loans but it turned out they were not, this was discovered after complaints from clients. 1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer. In recent times the NZICA has faced several cases of accounting ethical breaches. There were unpredictable increases and collapses of chartered accountants. From every corner, voices rose demanding accountability, demanding tighter regulation and unethical practices to be brought to justice. Clearly, those at fault should have been punished. However, in order for ethical principles to apply it must be shown that the institution is inherently moral or ethically responsible (Graham, 1960). Secondly, an adequate discussion of what accounting ethics is should be provided before an institution can be investigated as to why it does not conform to the standards. The role of those same ethical standards must be explained with deep content. Also societal preventative measures for unethical practices should be examined. The contribution of philosophical trends and the current philosophical mood of the society must be investigated in order to dwell in the mindset of those who perpetrate such acts (Graham, 1960). 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical
The New Zealand Institute of Chartered Accounts (NZICA) represents over 33,000 members in New Zealand and overseas. The organization audits private companies and public companies that are members of the organization (Graham, 1960). In October 2012, the organization was found to be practicing breaches of accounting with its members when an employee of the organization was found investing in different companies using client’s money. The loans were supposed to be short-term loans but it turned out they were not, this was discovered after complaints from clients. 1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer. In recent times the NZICA has faced several cases of accounting ethical breaches. There were unpredictable increases and collapses of chartered accountants. From every corner, voices rose demanding accountability, demanding tighter regulation and unethical practices to be brought to justice. Clearly, those at fault should have been punished. However, in order for ethical principles to apply it must be shown that the institution is inherently moral or ethically responsible (Graham, 1960). Secondly, an adequate discussion of what accounting ethics is should be provided before an institution can be investigated as to why it does not conform to the standards. The role of those same ethical standards must be explained with deep content. Also societal preventative measures for unethical practices should be examined. The contribution of philosophical trends and the current philosophical mood of the society must be investigated in order to dwell in the mindset of those who perpetrate such acts (Graham, 1960). 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical