Unethical Behavior In The Workplace

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There is really no room for unethical behavior in the pro world. This statement is exceptionally foremost 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 accomplish unethically.

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Unfortunately, there are complicated reasons for which one might consider acting unethically when making ready financial information. The most definite surmise may be quite simply, for self-interest-greed.

An accountant may embezzle funds from his or her owner for financial gain. Or possibly the Cfo of a publicly traded corporation may put in order financial statements to appear as though the firm is performing much better than it really is, because he or she wants their stock briefcase 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 narrative false information. Or maybe a Cfo is experiencing ask 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 decree to work for a firm even though a friction of interest may exist. If the accountant is owed money or has a vital stake in a firm, he or she may not be the ideal personel to put in order definite companies' financial statements.

Finally, and possibly the most coarse form of unethical behavior, is the failure for an accountant to escort an in-depth analysis when making ready and revision financial information. There are many individuals who prefer to take short-cuts in life; and frankly, this simply is not standard when expected to accomplish in a pro manor.

There have been many laws enacted, on both state and national levels, intended on preventing one from conducting unethical accounting practices. In addition to these laws, have been many recommendations to implement changes geared towards the revision of pro ethics.

Two such individuals, who have spent much time working on this topic, are: Jane B. Romal and Arlene M. Hibschweiler. According to the June 2004 Cpa Journal, Romal and Hibschweiler recommended that "states should be encouraged to mandate ethics training as part of Cpe requirements".

This belief forced the Texas State Board of group Accountancy (Tsbpa) to begin a more intense training regimen for accounting educators, Cpas, and accounting students. This included having every licensee taking four-hour ethics courses on the board's Rules of pro escort every two years. The Arizona State Board of Accountancy requires every Arizona Cpa to take an ethics class for licensing renewal.

In addition to state level mandates, is the Sarbanes-Oxley Act. Section 406 of the Sarbanes-Oxley Act requires that publicly traded companies disclose their code of ethics for senior financial officers. The Act was designed to promote honest and ethical conduct; full and exact disclosure in periodic reports; and compliance with applicable government rules and regulations.

Even with the actions of Romal and Hibschweiler, the Tsbpa, and the Sarbanes-Oxley Act; no one can regulate another's integrity. Some individuals, regardless of their profession, will always look for some form of personal gain, even if it means conducting themselves in an unethical manner. This narrative is designed to help educate people on unethical accounting practices, why they occur, and how we as a nation can promote ethical behavior.

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