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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 of differences in judgment. This makes resolving ethical issues in financial accounting for businesses difficult.
Rebuiling Trust After Enron
After Enron, businesses needed to rebuild the trust of the public, their stake holders, and others along their supply chain. National and international governments, along with the assistance of major corporations, instituted programs and adopted new laws to ensure higher standards within the field of accounting. The need for tighter control and standardization in the accounting profession led to the development of many new technologies to help achieve these goals. One of the greatest changes in the accounting profession is transparency. Auditing standards were tightened and accountants are held to higher levels of accountability than they were in the past.
Technological and legal changes were designed to rebuild trust in the accounting profession. Organizations as well as institutes of higher learning emphasize moral decision making as much as they emphasize accounting principles. Standards for accounting are tighter and there are many more rules that add clarity where there was ambiguity in the past, in terms of reporting. However, the development of tighter standards did not resolve all of the ethical issues that arise in the accounting profession. There are still many areas that come down to personal judgment. These issues make the task difficult for researchers and teachers of accounting ethics (Pava, 2010).
Ethical questions continue to plague accountants as they make judgments in the course of their daily activities. There are faced with hundreds decisions that force them to interpret and apply the laws and guidelines imposed upon them by the FASB and other national governmental entities. Teaching students how to think ethically is a problem that continues…[continue]
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"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.24 May. 2016, http://www.paperdue.com/essay/the-legal-ethical-technological-concerns-85159