Role and Functions of Law
Laws play a powerful role in the prosperous operation of business and society by regulating social conduct that leads to a society that can run freely yet efficiently. Working on the accounting for a medium sized manufacturing company requires a great deal of knowledge of the functions and roles of law in the industry when issues of ethics, taxes, and disputes come into play. The more knowledgeable the accountant, the better prepared they will be when difficult legal situations are at hand.
Laws help to supply ethical measures and expectations along with rules of oversight and the appropriate measures needed to impose those rules. When those rules are not followed, laws also have accompanying repercussions to help settle disagreements. Accounting has a great deal to do with ethics, as most of what accounting deals with is in the financial nature. When accounting finds something unethical, it is their duty to call attention to the matter. Oftentimes the unethical matters deal with fraud that is an illegal act. When fraud is detected, an accountant is to notify their immediate superiors of the issue and follow it up the chain of command to ensure the issue is resolved. If the fraud is found to be originating from higher up management, the accountant must seek outside legal advice to perform the steps necessary for perusing a whistleblowing case. That individual is then protected by the Whistleblower Protection act of 1989, so the company cannot retaliate against them. Understanding this law and following it precisely is the only way the accountant will be protected. If the accountant steps out of line and moves forward without following the necessary steps, the accountant will not be protected by the act. The fraud may still go on to be resolved, and the guilty party punished, however the accountant may lose their job and could be cited for negligence or breach of confidentiality.
Taxes play a major part in the decision making process of business. When
Laws help to supply ethical measures and expectations along with rules of oversight and the appropriate measures needed to impose those rules. When those rules are not followed, laws also have accompanying repercussions to help settle disagreements. Accounting has a great deal to do with ethics, as most of what accounting deals with is in the financial nature. When accounting finds something unethical, it is their duty to call attention to the matter. Oftentimes the unethical matters deal with fraud that is an illegal act. When fraud is detected, an accountant is to notify their immediate superiors of the issue and follow it up the chain of command to ensure the issue is resolved. If the fraud is found to be originating from higher up management, the accountant must seek outside legal advice to perform the steps necessary for perusing a whistleblowing case. That individual is then protected by the Whistleblower Protection act of 1989, so the company cannot retaliate against them. Understanding this law and following it precisely is the only way the accountant will be protected. If the accountant steps out of line and moves forward without following the necessary steps, the accountant will not be protected by the act. The fraud may still go on to be resolved, and the guilty party punished, however the accountant may lose their job and could be cited for negligence or breach of confidentiality.
Taxes play a major part in the decision making process of business. When
References: Melvin, S. P. (2011). The legal environment of business: A managerial approach : theory to practice. New York: McGraw-Hill/Irwin.