Business Research Ethics Essay Example for Free

Business Research Ethics EssayThe score world is changing constantly and so are the rules that are being set up to protect companies and their assets. There are codes of conduct that invoice offices and their personnel must adhere to and when they are not come throughed, in that location can be an ethical challenges that you acquit to deal with. Users of accounting information perform different types of creative accounting. Some of these practices are ethical and ratified and other are not. It is important for a company to set up procedures that find out and double impediment everyone in the accounting department from the clerks to the Controller. There is never a time in any profession that someone is allowed to do things without having someone else check on their work.When there is no follow up or checks set in place is when the company finds themselves in trouble. As accountants, we are required to make accredited that the work that we produce is accurate, credible a nd true information. This information is used to help investors and cants to make a unplayful business decision in regard to their credit and investment opportunities. many a(prenominal) times, an accountant will convey creative with the meter to assure just that outcome. The numbers are rarified to show a reform financial picture and this will help the company get more money and energize the bank invest more in their future.Sometimes, this can go on for a long time without anyone lettered it is all false. Other times, companies get caught. May I remind you of Enron? Over the years stockholders and investors have bewildered large amounts of money due to false insurance coverage or creative accounting. It is for this reason that the need for restrictions on those practices and find a solution to this problem became necessary.A company that I worked for in the past had to lastly file for bankruptcy because the Executive Board was unaware of what the Controller was doing. Ma ny of us were aware of the wrong numbers and were not sure how to handle it because we could not really prove that the numbers that he wasreporting were actually wrong. There are procedures in effect that prevent accountants from doing this, but not all companies follow them. This is why attendees are used with many companies. Auditors are there to make sure that all numbers and documents are proven to be correct and that there is no creative accounting or inflated numbers when looking at financial statements. Auditors can also be a deterrent for theft.If there is never a check and balance with an accountant in a company, there can be a greater chance of theft. I know of a company that I worked for suffered a prejudice of over $50,000 because the Controller was not required to get a second signature on checks at a lower place $5,000, so he issued himself eleven checks in the amount of $4,000. He would take the check and record that the check went to a vendor or supplier. When th e bank statement was sent to our office, he would do the bank reconciliation, so no one saw the actual cancelled check because he destroyed it. Had there been an attendee that would be checking his work, this never would have continued to happen, they would have found it after the first check. It is important accountants to restrain integrity and avoid questionable situations. There are many things that can be seen as inappropriate.Many times over the years, I have been offered tickets to baseball games, dinners, gift baskets, etc. to use a fact company as a major supplier or to use a certain bank. I never thought much of accepting a gift basket, but I was told by an auditor for our firm that can be misunderstood and never to do that. This is a small scale, many companies have been known to get government contracts or big jobs because of making certain promises. Research has proven to our executives and investors that the just way to make sure that there is no inappropriate beha vior by having internal and outdoor(a) auditors to examine the books on a regular basis. Knowing that there are audits completed on a random basis and knowing that those audits are being audited by external companies prevents mishaps, theft and misappropriation of funds.Having a clear set of policies and procedures in place and also having a clear plan of action for employees that do not follow these procedures is a sure way to insure that your company is protected. GAAP (generally accepted accounting practices) defines what is and is not permissible, but it is not infallible. GAAP can be manipulated and subject to interpretation and accountants can endue fraud any time. Eventually, we have to count on good accountingprocedures, our auditors and most importantly, employee ethics and moral philosophy to keep everything and everyone in line.REFERENCESAl Momani, M. A., Obeidat, M. I. (2013). The effect of auditors ethics on their detection of creative accounting practices A field s tudy. International Journal of Business and Management, 8(13), 118-136. Retrieved from http//search.proquest.com/docview/1418426106?accountid=458 Leung, E. C. (2004). Accounting ethics. Business and Society, 43(2), 226-226+. Retrieved from http//search.proquest.com/docview/199387513?accountid=458