Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Ethical and Unethical Events in Accounting, Essay Example

Pages: 2

Words: 608

Essay

Accounting just like any other discipline has its ethics. Some of the ethical practices include spending cash appropriately, transparency, and proper book keeping. On the other hand, unethical practices in accounting include, fraud, bribery, inside trading and misuse of company’s funds.

Unethical Events in Accounting

One example of unethical event that occurred recently as reported by Locust, in Wal-Mart stores an American company, whereby the vice chairman Mr. Thomas Coughlin was involved in embezzlement and misuse of the company’s funds (para 53). Mr. Thomas Coughlin was a top executive who coerced Wal-Mart’s accountants to include his personal expenses in the company’s expenditure account. Thomas bought a pen house and alligator boots worth almost half a million and asked the accountants to include of the expenses incurred into Wal-Marts accounts. The fact that Thomas knew that he was an executive in the company; he could get away with all the frauds he committed during his reign. The company was also against the unionization of workers and Thomas asked for funds to stop the unions from forming. He used the funds to buy personal properties and the accountant included the funds taken out of the company as those used to benefit the whole company. The accountant did not report Thomas because he feared he might get fired because of reporting an executive. This made the accountant unethical because he knew very well that it is an offence to embezzle and also misuse the company’s funds and he allowed his fear to overshadow his conscience of doing the right thing. According to the ethics of accountancy, misuse of funds and also funds embezzlement is a great offence and a person carrying out that offense should be treated as a criminal. Even though the accountant later notified the company’s CEO about the illegal acts of Thomas, he did not follow the ethics of his company because for many years he participated in encouraging fraud and misuse of Wal-Mart’s funds. The accountant was later fired for not reporting Thomas immediately he knew he was misusing funds and letting the company pay for his personal expenditure. Thomas was later charged with misuse and embezzlement of funds but he pleaded innocent. Locust suggested that the accountant should have reported Thomas the first time he asked for his assistance in misusing funds (pg 9).

Ethical Events in Accounting

Berkowitz reported that ethical events in accountancy today have positive effects in the society (pg 6). Great accountants help people to calculate their taxes and revenues in the correct manner using the right methods. An example is where an accountant helps a businessman manage his records. The accountant will record the inputs and the outputs and later calculate the profit or loss a business makes. The accountant will advise his client on how to be financially independent in the sense that, if the expenses are more than the income, the businessman should find ways to reduce the expenses and focus on how to make more profit and reduce his debts. A businessman is advised on how to make profits without necessarily carrying out illegal businesses. Berkowitz also suggested that an accountant will help a businessman calculate the amount of money needed for the business to expand so as to make more profits and also how to motivate the work force by giving the work unit benefits (pg 8).

The ethical accountant is one that tries to help his client reach his financial goals while the unethical accountant helps himself alone putting his own interests first.

Works Cited

Arthur L. Berkowitz. Enron: A Professional’s Guide to the Events, Ethical Issues, and Proposed Reform. California: CCH, Inc. 2005.

Locust. Accounting & Ethical Problems. New York: Academic Press, 2004.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

Email and Voicemail Monitoring, Essay Example

When it comes to email and voicemail monitoring, it is important to consider the implications of these actions on behalf of both the employee as [...]

Pages: 1

Words: 340

Essay

Description of Place: A Forest, Essay Example

The logic behind the significance of specific locations to individuals inevitably varies. Some places may hold pertinence since they are the sites of important personal [...]

Pages: 1

Words: 315

Essay

Quality Management System, Essay Example

Customer needs and expectations are the products any customer attaches to a company and knows that he or she will get it when need arises. [...]

Pages: 1

Words: 337

Essay

What Does It Take To Be a Good Parent Assignment, Essay Example

The issue of what does it take to be a good parent is contentious, insofar as the thematic remains susceptible to subjective interpretations. One may [...]

Pages: 1

Words: 330

Essay

Human Rights Violations and the Legal System, Essay Example

The Universal Declaration of Human Rights (hereinafter: UDHR), advanced by the United Nations General Assembly in 1947, was a watershed moment, insofar as with this [...]

Pages: 4

Words: 1122

Essay

The Critical Consulting Firm, Essay Example

Week 5 Issues The CanGo operation provides interesting insights into, unfortunately, how to conduct employee relations poorly. This is obviously not the company’s intent; on [...]

Pages: 5

Words: 1287

Essay

Email and Voicemail Monitoring, Essay Example

When it comes to email and voicemail monitoring, it is important to consider the implications of these actions on behalf of both the employee as [...]

Pages: 1

Words: 340

Essay

Description of Place: A Forest, Essay Example

The logic behind the significance of specific locations to individuals inevitably varies. Some places may hold pertinence since they are the sites of important personal [...]

Pages: 1

Words: 315

Essay

Quality Management System, Essay Example

Customer needs and expectations are the products any customer attaches to a company and knows that he or she will get it when need arises. [...]

Pages: 1

Words: 337

Essay

What Does It Take To Be a Good Parent Assignment, Essay Example

The issue of what does it take to be a good parent is contentious, insofar as the thematic remains susceptible to subjective interpretations. One may [...]

Pages: 1

Words: 330

Essay

Human Rights Violations and the Legal System, Essay Example

The Universal Declaration of Human Rights (hereinafter: UDHR), advanced by the United Nations General Assembly in 1947, was a watershed moment, insofar as with this [...]

Pages: 4

Words: 1122

Essay

The Critical Consulting Firm, Essay Example

Week 5 Issues The CanGo operation provides interesting insights into, unfortunately, how to conduct employee relations poorly. This is obviously not the company’s intent; on [...]

Pages: 5

Words: 1287

Essay

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!