Verified Document

Unethical Practices And Behavior In Accounting. Review Essay

¶ … unethical practices and behavior in Accounting. Review the effect of the Sarbanes-Oxley Act of 2002 on financial statements. Identify situations that might lead to unethical practices and behavior in Accounting

The company may distort its accounts in order to make its situation more attractive to current and prospective investors. It may distort its accounts believing that economic conditions will be more promising in the future or equivocating one account with another.

Other situations that may result in unethical practices may be the situation of hiring accountants who, even though they are from an external agency, are paid a bonus to audit the financial records of the organization in a biased way. The organization, too, may reward these auditors in other manners, and so, even if not done overtly, the bribery induces the auditors to lean towards the organization and distort the accounts.

Furthermore, organizational behavior is modeled and influenced by the general organizational corruption. Corruption in the workplace implicitly impacts conduct of those who work for the organization. The effects not only of managers but also...

Rationalization is easy: simply disconnecting oneself from the purpose of the job (i.e. The wider purpose aside from that of making money), as well as disconnecting oneself from the customer (in that distorted accounts are misleading the customer) usually aids one in implementing distorted accounts. These are some of the justifications that Hatch (2010) lists. Others include rationalizations such as prospective or current investors deserve to be misled for whatever purpose (usually because they are greedy); distortion is insignificant and can be explained; distortion will be corrected when company reverts to good times (i.e. It is only for the present / this time alone); and distortion are not hurting anyone
The effect of the Sarbanes-Oxley Act of 2002 on…

Sources used in this document:
Hatch, Larry (2010) Justifications for Unethical Behavior.

http://www.associatedcontent.com/article/2639865/justifications_for_unethical_behavior_pg2.html?cat=9

Lasher, William R. (2008). Practical Financial Management (5th ed.). Thomson South-Western.
Cite this Document:
Copy Bibliography Citation

Related Documents

Detecting Unethical Practices at Supplier
Words: 1671 Length: 6 Document Type: Term Paper

Through the development and implementation of a customized plan, the parties could attain a series of objectives. These results, the main supporters of the importance of a program, refer to the following: Reduction in the joint costs Identification of complex supply issues Opportunities for operational integrations Sustained and continuous benchmarking Improved communications Support for strategic decisions Improved collaborations and Improved value for both company and supplier (the Office of Government Commerce, 2010). 12. Supplier management and unethical

Accounting Ethics of Accounting There Have Been
Words: 1532 Length: 4 Document Type: Essay

Accounting Ethics Ethics of Accounting There have been breaches in the ethics of accounting in recent times. With that in mind, evaluate whether or not the current trend in the regulation of business establishments is favorable to ethical behavior. Supply supportive evidence to your answers (Jeter, 2003). The generally accepted principles of accounting and the standards of auditing in contemporary practice stipulate that the financial statements of any establishment should contain the following

Unethical Behavior Memo Attention: Management This Memorandum
Words: 1428 Length: 5 Document Type: Essay

Unethical Behavior Memo Attention: Management This memorandum is in response to recent inquires made concerning the suspected continuance of unethical practices within the company. As you are undoubtedly aware, unethical behavior can be extremely detrimental to a company's future. It makes performance exceedingly difficult to measure, and it can cause various crucial entities within a company to malfunction, thus effectively crippling the firm's ability to operate and meet the needs of clients

Public Accounting Lessons from Ethical Violations
Words: 4593 Length: 15 Document Type: Essay

Lessons from Ethical Violations in Public AccountingPublic accounting is a field faced with ethical issues similar to any area of practice. Unethical practices in accounting are often motivated by management greed, incentives, bonus, management pressure, and more. These practices only lead to short-term gains (Finn, Chonko & Hunt, 1988). The long-term impacts are usually negative consequences. Ethical behavior and practices are critical aspects of good accounting. Accounting regulations and rules

Unethical Accounting Practices and Behavior. Unethical Behavior
Words: 860 Length: 2 Document Type: Essay

unethical accounting practices and behavior. Unethical behavior occurs when there is a combination of motive and opportunity, along with a lack of integrity. Situations that contribute to ethical lapses in accounting occur because of the very nature of accounting fraud being a white collar, non-violent crime. Accounting provides an opportunity to "cook the books" and exercise one's greed without pointing a gun or breaking into someone's house. Accounting crimes are

Unethical Accounting Behavior Our Hypothetical Situation Is
Words: 843 Length: 2 Document Type: Essay

Unethical Accounting Behavior Our hypothetical situation is a company that sells housing units in a resort community. We will call the company, Jones, Inc. Jones Inc. uses techniques to sell as many units as possible in a given fiscal period, financing almost all, regardless of whether the client is credit worthy or not. The sales force receives a bonus from the real estate conglomerate for selling a certain number of units,

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now