Ethics in business:
Ethics have been defines as the discipline that differentiates between what is good from what is bad. Ethics are a set of moral principle or value. Ethics assist individuals to make moral decisions when faced with any kind of situation. In business, ethics assist individuals in applying ethical considerations when making any decisions. Ethics regarding the carrying on of business have been described as principles and standards of behavior that are expected of individuals in business.
There are various philosophical approaches to decision making in business. One of the most popular philosophical approach to ethics in business is the ...view middle of the document...
Preventing credibility gap and expectations gap.
In order to prevent the credibility gap and the expectations gap, accounts could ensure that they pay more attention to public interest and also to ensure that the exercise autonomy of judgment and objectivity and integrity in carrying on their duties.
The difference between fraud examiners rules for client acceptance and the auditors rules for client acceptance.
The main difference between fraud examiners rules for client acceptance and auditors’ rules for client acceptance lies with the authority a client can assert over the two persons. In fraud examiners rules, the decisions reached at by fraud examiners are not authenticated or approved by the client. There is no legal requirement that a client ought to accept or authenticate the decision reached at but the examiner. There is only a requirement that any decisions reached at by the examiners shall be based on evidence that is sufficient and relevant to support the facts, conclusions, opinions and/or recommendations related to the fraud examination. On the contrary, auditors’ rules for client acceptance provide that auditors’ findings can only be published upon clients’ authentication and approval. In both scenarios however, there is a general legal duty to observe ethical standards in carrying out the work.
Why did Enron fail?
Enron was one of the Multinational corporations that failed in the recent decades. The major cause of Enron’s failure was the lack of auditing ethical standards and most specifically, failure of internal and external auditors to disclose financial flaws in the company, an omission which led to a false illusion of financial security within...