Accounting Ethics Case Study

Case Study on Accounting Ethics:

Accounting ethics is a part of ethics that deals with the field of accounting. It is obvious that the sphere of finance is too far from morality, because every entrepreneur wants to make as much money as possible and very often, he practices improper methods that make him richer.

The main idea of accounting is to record a company’s performance, its failures and profit.

Nowadays, big corporations depend on shareholders and investors. They invest money into a company and they want earn money if this company becomes a successful one. If this company has high annual profit, shareholders and investors will receive solid sums of money.

Consequently, unfair international corporations and other big companies try to hide their actual revenue in order to reduce disbursement to their investors. This common practice is punished by law, so companies try to do it insensibly.

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Accounting ethics strives to teach accountants and other experts connected with the field of finance to avoid practicing such frauds. Accountants have to improve their moral values and develop a sense of responsibility in their character, because all financial frauds cause harm to employees and economy of the state. For example, if a big international corporation hides its profit, a country loses billions of dollars that could have been received with the help of taxation.

As a result, the country does not receive the required donations and such spheres as public education, the police, healthcare services, etc. are underfinanced. The government of every country tries to cope with financial frauds in different ways. Obviously, education and development of moral values and ethics is the most useful approach towards the solution of this issue.

Accounting ethics is an important problem that can be very interesting to students who are involved into accountancy, business and management. When a teacher has assigned a case study to you, you should analyze the suggested case attentively. It is important to explain the meaning of accountant ethics to your teacher and get to know about its cause and effect. It is natural that you will have to devote much time to observation of your case, its slight details and other peculiarities. When you have analyzed the effect of the suggested problem, you will need to solve this case well in order to demonstrate your creativity and professionalism to your teacher.

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