The Legal Ethical Technological Concerns Paper i Submit a 1 000 1 250 word paper identifies discusses legal ethical technological concerns accounting financial reporting businesses ii Cite 2 references describe concerns actively addressed

Length:  4 pages (1229 words) | Sources:  2  | Subject:  Business Ethics | Type: Essay | Paper: #4376621 | Author:  

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will discuss key ethical, legal, and technological concerns that have arisen regarding financial accounting for businesses.

Business Ethics Today

Providing an accurate and honest representation of the company is the only concern of the accountant. Many entities depend on the accuracy and dependability of their data. Faulty data needs to faulty decisions and if the error was intentional in order to produce a certain image, the data can be a source of mistrust. It is important for accountants to maintain the trust of the entities for whom they work, stakeholders, and also to maintain public trust. Inaccuracy in accounting statements harms the overall image of the company. The company must be able to trust the integrity of the data that is presented by its accountants.

The highly publicized Enron case, which led to the conviction of its executives, changed the decision-making behavior of management, and created a major shift in what is considered ethical behavior within corporations (Bolt-Lee, 2010). According to the author of the study, the Enron case created a sense of heightened awareness of ethical issues regarding accounting.

In response to the Enron case, many companies developed their own ethics training programs. However, the results of these programs have been mixed. In a recent study, the least effective programs were found to be those that utilize coercive control mechanisms and focus on punitive measures for enforcement. These programs dictate ethical behavior, but they do not develop employees skills in addressing issues that arise in ambiguous situations (Bolt-Lee, 2010). The problem lies in differences in individual judgment.

Everyone agrees that it is wrong to lie about the numbers in the financial report. However, not every situation fits neatly into what is considered legal in the accounting profession. For instance, valuation of assets is one of the areas where accountants must often use their own judgment in regards to how they are reported. This is one of the most difficult areas in the development of standard ethical practices among financial accounts. Another similar area is how to report intangible assets. Many times the core issues are more of a matter…[continue]



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APA Citation

"The Legal Ethical Technological Concerns Paper I Submit A 1 000 1 250 Word Paper Identifies Discusses Legal Ethical Technological Concerns Accounting Financial Reporting Businesses Ii Cite 2 References Describe Concerns Actively Addressed" (2011, September 25) Retrieved September 20, 2014, from http://www.paperdue.com/essay/the-legal-ethical-technological-concerns-85159

MLA Citation

"The Legal Ethical Technological Concerns Paper I Submit A 1 000 1 250 Word Paper Identifies Discusses Legal Ethical Technological Concerns Accounting Financial Reporting Businesses Ii Cite 2 References Describe Concerns Actively Addressed" 25 September 2011. Web.20 September. 2014. <http://www.paperdue.com/essay/the-legal-ethical-technological-concerns-85159>

CHICAGO Citation

"The Legal Ethical Technological Concerns Paper I Submit A 1 000 1 250 Word Paper Identifies Discusses Legal Ethical Technological Concerns Accounting Financial Reporting Businesses Ii Cite 2 References Describe Concerns Actively Addressed", 25 September 2011, Accessed.20 September. 2014, http://www.paperdue.com/essay/the-legal-ethical-technological-concerns-85159