Reporting Practices and Ethics
February 2, 2015
Univeristy of Phoenix Axia Online
Reporting Practices and Ethics
As you visit a medical clinic or hospital you may have concerns about the medical care you will receive. You would hope that you will receive fair and ethical treatment from the staff. It is the responsibility of the staff to do the best job possible to service not only the paient but also the employer. There is a need for an ethical foundation, especially in the health care setting. According to "Bringing Ethics And Integrity Into Focus" (2012), “Patients and family members desire high quality care, patient safety and the latest medical technology. But, ultimately, trust in the integrity of the caregiver is the foundation for their peace of mind.” Elements of Financial Management
Financial management is vital to an organizations effectiveness. Financial management consists of four elements. The financial manager takes the necessary steps to identify and organize the organizations objectives. This is the element called Planning. Controlling is when the financial manager ensures that the plans set by the organization are being followed properly and efficiently. The financial manager then makes the decision of how to use the resources of the organization to carry out the plans that have been established. This is where the organizing and directing comes in. The last step that the financial manager makes is the decision making process. This is where the financial manager will make informed choices through primary tasks of analysis and evaluation.
Accounting Principles and Financial Ethics Standards
It is very important that accounting and financial professionals abide by the ethical standards that regulate what kind of business is conducted, how they use their skills and who they serve. This is called Gernerally Accepted Accounting Pricinples. Ethical standards are determined largely by professional accounting and finance organizations and the Financial Accounting Standards Board. Accountants and financial professionals must continue their education and practice the ethics that prepare them for their positions, and they must also continue that education by learning new information that can affect their practices. Accountants must be objective, avoiding conflicts of interest. They must not, for instance, perform accounting services for firms that they have a vested interest in. When working with a client's financial information, financial professionals have access to a great deal of personal information. This is not only limited to financial information but also includes the names and contact information of employees as well as the names and locations of firms with which the company does business. Financial professionals are required to keep that information private except when ordered to disclose it by a court of law. Keeping information private is an example of an ethical standard. Another example of ethical standards of conduct and financial reporting practices would be the company Enron. Enron is a company known for it's ethical scandals. Enron was unethical due to the fraud that was committed by it's top executives. On paper the accountants made Enron more powerful than they appeared. Subsidiaries, known as special purpose entities have a single purpose and it was not necessary that they were included on Enron's balance sheet. These subsidiaries were used to hide risky investment activities and financial losses. (Folger, 2011). It was later determied that Enron assets and profits were inflated, and even fraudulent and non-existent. Enron was one of the worst accounting scandals of all time.
With the Enron scandal, organization ethics are more important now than ever, but not only does it make a businesses practice sound, it also allows the employees of the organization to go by a higher standard of integrity in their daily...
References: Bringing ethics and integrity into focus. (2012). Retrieved from http://www.healthcarefinancenews.com/news/bringing-ethics-and-integrity-focus
Folger, J. (2011). The Enron Collapse: A Look Back. Retrieved from http://www.investopedia.com/financial-edge/1211/the-enron-collapse-a-look-back.aspx
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