What forces exist that encourage unethical accounting practices? What justification do you think accountants use for their unethical behavior? Why do you think efforts to change this have not been enacted? How might managers prevent unethical accounting practices in the workplace
There is absolutely no room for unethical behavior in the professional world. This statement is exceptionally important for publicly traded companies and their accounting practices. [ From financial officers to accountants to auditors, and so on, there is no greater impact on stakeholders when these persons perform unethically.
Unfortunately, there are multiple reasons for which one might
consider acting unethically when preparing financial information. The most obvious reason may be quite simply, for self-interest-greed.
An accountant may embezzle funds from his or her employer for financial gain. Or perhaps the CFO of a publicly traded corporation may prepare financial statements to appear as though the company is performing much better than it actually is, because he or she wants their stock portfolio to increase.
Another example for why unethical behavior might exist is from corporate pressure. An accountant may feel pressured from his or her client to report false information. Or maybe a CFO is experiencing demand for improvements from the board of directors, the company's president, owners, or stockholders; or he or she may be in fear of losing their job.
An accountant may decide to work for a company even though a conflict of interest may exist. If the accountant is owed money or has a significant stake in a firm, he or she may not be the ideal individual to prepare certain companies' financial statements.
Finally, and perhaps 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. There are many individuals who prefer to take short-cuts in life; and frankly, this simply is not acceptable when expected to perform in a professional manor.
There are no new answers.