This website uses cookies to ensure you have the best experience. Learn more

Effect Of Unethical Behavior Essay

498 words - 2 pages

Effect of Unethical Behavior
ACC/291
September 2, 2012

Effect of Unethical Behavior
A quote from Ray Beier, a partner of PricewaterhouseCoopers, puts the idea of ethical behavior and its effect on financial statements into perspective. He states, “From the corporate scandals, we now realize that accounting was too rules-based, where it needs to be more principles-or objectives-based” (Bisoux, 2005, p. 24). Corporations had been so concerned with financial gain that the idea that there was a need for better internal controls did not exist. As long as the corporation was providing financial statements that presented the picture of a company continuing to grow and make money, it was assumed that the company ran smoothly. As a result, it was far too easy for corporations to overstate the ...view middle of the document...

The company’s stock fell so sharply and quickly that many stockholders were caught off guard and lost millions of dollars.
The Sarbanes-Oxley Act was enacted to mandate a sound ethical structure for corporations to operate; creating a level playing field where everyone plays by the same rules. A specific section of the Act seems to get the most response from individuals within the corporate world. Section 404 consists of three main issues that reflect the strongest impact the Act will have on corporations. First, management must create and implement internal financial controls that are reliable; second, management must “attest to the reliability of those controls and the accuracy of financial statements that result from those controls” (Bisoux, 2005); third, independent auditors must attest to the financial statements. These three requirements have caused corporations to review internal financial operations and determine what changes are necessary for them to become compliant.
Sarbanes-Oxley was developed to ensure corporations and their financial statements properly represent the company’s financial standing and viability. There may still be an opportunity for unethical behavior within a corporation, but if the proper internal controls are in place, many of the unethical decisions will be discovered during the annual audit and can be corrected.

References
Bisoux, T. (2005, July/August). The Sarbanes Oxley. BizEd, 24-29. Retrieved September 2, 2012
from AACSB.edu http://www.aacsb.edu/publications/archives/julyaug05/p24-29.pdf

Hazels, B. (Nov/Dec 2010). Eight Years After The Fact Is SOX Working? A Look At The
Brooke Corporation. Journal of Business Case Studies 6.6, 19-29. Retrieved September
2, 2012 from http://www.oppapers.com/essays/Impact-Unethical-Behavior-Article-
Analysis/110641

Other assignments on Effect Of Unethical Behavior

Team Work Essay

861 words - 4 pages Business Research Ethics Kelly Coggins RES/351 Business Research May 6, 2014 Dr. Gemignani Business Research Ethics: Perceptions of Unethical Faculty Behavior The general public has become nearly desensitized and disgusted by repeated revelations of unethical behavior occurring at all levels of management and government, especially in the academic community where educators are entrusted with serving as role models to the

Ethical Issues Essay

757 words - 4 pages different moral orientations (Kinicki, Kreitner, 2009). Organizations can influence ethical behavior by establishing a code of conduct and organizational culture. By establishing codes of conduct the corporation can state how they would like their employees to act. In larger companies rewards can be given for good ethical conduct, since some studies show that unethical behavior is more common in the larger workplace (Kinicki, Kreitner, 2009

Code Of Ethics

1474 words - 6 pages numerous incidents of unethical behavior in the accounting profession stress the need for increased ethics in accounting education”(2). Obtaining an overall education on the code of ethics will not be simply achieved. The proposal of a new looks on the Code of Ethics will not informed professional accountants on the obligations and ethical responsibilities that they have to follow. Educating accountants of how to manage in challenging ethical

Research Methods

256 words - 2 pages PSYC 1003: INTRODUCTION TO PSYCHOLOGY Research Methods in Psychology Their Advantages and Disadvantages Method Case history Advantages Good source of hypotheses. Provides in-depth information on individuals. Unusual cases can shed light on situations/problems that are unethical or impractical to study in other ways. Allows description of behaviour as it occurs in the natural environment. Often useful in first stages of research program

Mortgage Fraud

1636 words - 7 pages , and judging by their managers response, they found out that the whole workplace was engaged in writing and approving these fraudulent loans. They could either go with the “norm” or quit. Recommendation number 3. Coleen was asked to approve fraudulent applications. In this event she needed to report it to her supervisors. When reporting unethical behavior CVtips recommends the following: Be sure of your facts. Do not discuss the issues outside

Bus 520

1360 words - 6 pages or wrong. Having written policies, such as a company handbook which is based on the standards generally accepted as universal ethical behavior and law is very useful to the organization. The policies will help employees understand and learn appropriate ethical behavior. It may help eliminate the unethical behavior in the work place, since they are trained and have acknowledgement of the company’s behavior requirements. The staff will be more

Task 2: Est1

2376 words - 10 pages necessary parties. Reports can also be made anonymous if desired. If an employee finds his or herself in violation of this code of ethics they are contractually responsible to inform their direct superior. We strongly encourage prompt reporting of unethical behavior so the actions will not further damage any more than has already been done. Compliance with the code is mandatory and not to be ignored. Ethics Training Program The following are focal

Workplace Legal/Ethical Issues – Summary Paper

2946 words - 12 pages afternoon of time off. Positive reinforcement breeds the desired behavior, ethically acceptable behavior, and it carries over to the other employees. Additionally, it causes them to want a reward. The managers are careful not to reward and reinforce unethical behavior. Unethical behavior is dealt with one on one initially, and then discussed anonymously in a meeting. This cuts off unethical behavior at its root and keeps it fromprogressing

Management

379 words - 2 pages our goal of maximizing the value of the equity shares be different if we were thinking about financial management in a foreign country? Why or why not? 2. Can our goal of maximizing the value of the equity shares conflict with other goals, such as avoiding unethical or illegal behavior? In particular, do you think subjects like customer and employee safety, environment and general good of society fit in this framework, or are they

Firac Case Brief

432 words - 2 pages FIRAC Case Brief PA205: Introduction to Legal Analysis and Writing Angela Harbin Kaplan University Mitchell v. Lovington Good Samaritan Center, Inc., 555 P.2d 696 (N.M. 1976) FACTS: Zelma Mitchell’s employment at Lovington Good Samaritan Center, Inc. was terminated for alleged misconduct. The alleged misconduct included refusing to administer medication as part of her duties, singing while counting medication which is unethical as it is

Ethics

1391 words - 6 pages . The article titled, Lessons learned from organizational crisis: Business ethics and corporate communication, was a discussion on Australia’s largest corporate failures, HIH Insurance. The article discussed the details of the failure, including the unethical and illegal behavior of the executives of the organization. One of the lessons learned was the need to have a code of business ethics, which would have been a set of guiding moral values

Similar Documents

Week 5 Reflection Summary Essay

401 words - 2 pages investors as it provides them with important and detailed information that could turn out to be the determining factor as to their decisions to invest or not to invest in a particular organization. Therefore, it is not uncommon to find unethical behavior in accounting as unethical practices come in different forms and different situations that might lead to unethical practices in accounting include are misleading financial analysis in order to obtain

Cross Cultural Perspectives Essay

1225 words - 5 pages dictated by their culture. China has laws in effect that govern what would be considered unethical business behavior such as bribery, fraud, and inhumane labor practices, and the Chinese government enforces these laws and fines companies that are in violation, but these unethical practices are so engrained in the business culture in China, it is almost impossible for the government to keep up with the accusations of violations, not to mention the

Ethics Essay

1692 words - 7 pages way ethical behavior can exist in an organization is if the leaders of that organization influence their subordinates to have ethical behavior in the way they conduct the daily business activities. Unethical behavior in organization has been widely reported in the wake of many recent high profile corporate scandals. Researchers and practitioners consider that what may be driving the increase of such behavior in organizations is that many senior

Social Responsibility Essay

5313 words - 22 pages that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the