If a person is in the accounting or finance field long enough, there will be someone who will ask them to fudge something. This is considered to be unethical practices and behavior, and this is just one of many different ways that this can happen. The general meaning of unethical occurs when employers do not conform to their professions approved standards. The one bad part about this, even if it’s unethical it doesn’t necessarily mean that it will be illegal. One example of an unethical practice would be a person whom has the ability to manipulate businesses finance, or has different ways of controlling the net income to either make the business look better, or for their own personal gain. Another form of unethical behavior might be from corporate pressure, where a client may be pressuring the accountant to report false information, or the accountant could be feeling pressure from their supervisor, so in the fear of losing their jobs they make themselves look better than what the real picture is. An accountant will work for a company even if they know there will be a conflict of interest in that position. The most common form of unethical behavior is the failure for an accountant to conduct an in-depth analysis when preparing and revising financial information (Ezine Articles, 2008). The one thing to remember if a person is in the position to manipulate financial assets they need to be careful because if they are caught Uncle Sam will coming after them.
The Sarbanes-Oxley Act was passed back in 2002 in response to the reported scandals of various corporations financial reporting back in the late 1990s. With the Sarbanes-Oxley Act it has raised significantly the level of accountability for management. All financial statements must be certified that they are presented fairly and are accurate with no statements that are untrue or have any omissions of material facts. Management will have the responsibility to have an adequate...
References: Gaumnitz, B. and Lere, J (2008). Codes of Ethics with Impact. The CPA Journal.
Retrieved on November 16, 2008 from http://www.nysscpa.org
Jacobsen, R. (2008). Unethical Behavior in the Workplace. Ezine Articles.
Retrieved on November 16, 2008 from http://ezinearticles.com
Please join StudyMode to read the full document