Participation and Discussion Questions Essay Example | Topics and Well Written Essays - 1250 words

Participation and Discussion Questions - Essay ExampleA specific ethical challenge an accountant could be confronted with is encountering a client that wants to underestimate the net income in order to pull down his tax obligations. Accountants be not supposed to accommodate these types of requests from clients because it violates the code of ethics of the accounting occupation as well as the generally accepted accounting principles (GAAP). Another ethical concern in regards to pecuniary performance is payroll policies. Companies bum decrease their labor costs by paying below marketplace value to its employees, but such a practice can be counterproductive because personnel result be persuaded to leave the company and work for a competitor that pays better. 2. Discussion questions The Sarbanes Oxley exertion of 2002 helped improved many a(prenominal) aspects of the accounting profession that had ethical implications. For instance Section 404 of SOX deals with internal contro ls. These internal controls can be use to detect misappropriations and impostor. The Act increased the accountability of the profession. CEOs be now responsible for the accuracy of the financial statements. If fraud is detected the Sarbanes Oxley Act created capital punishment penalties of up to 25 years in prison. Sarbanes Oxley positive impacted Wall Street because it increased the customer confidence in the stock market. SOX helped safeguard the assets of a company. The Sarbanes Oxley Act also created auditor independence. The Enron scandal showed that how collusion can occur between and auditors and the managers when auditor independence does not exists. There things that could be done to improve the efficiency of the SOX law. Currently it is costing public companies over $1 million for compliance costs. The Sarbanes Oxley Act should be revised to eliminate the waste or inefficient processes that be causing compliance cost to escalate in the United States of America. Agency p roblems were reduced in companies that ar complying in the Sarbanes Oxley Act of 2002. 3. Participation - Gigi I agree with you to a certain extend that the use of cameras can be perceived as a breach of privacy, but in reality business are protected by the law because they have to right to monitor the work of its employees. A grey knowledge base in the practice is the usage of hidden cameras. The employee should know if they are being recorded by video. It is my sight that hidden cameras without the knowledge of the employee that they are been recorded is unethical and could be violating civil rights, but I am not a lawyer. If anybody knows the answer to this please continue the discussion going. 4. Participation David Accounting is a profession that functions well when the accounting staff has high moral and ethical standards. There have been rotten apples in the corporate world that have caused major accounting scandals such as WorldCom, Tyco, and Enron, but the majority of a ccountants are very honest people. All accountants know they have to comply with the generally accepted accounting principles (GAAP). A lot of people dont realize that accounting is a precise science that when wide-awake following GAAP will always give the same results. Currently the NBA and the players are on a lockout. To me it is sad that the players are claiming that the accounting losses of $300 million that the league suffered are not dead on target considering the fact that a CPA certified those numbers. 5. Participation - Taneda I agree with you that ethics is extremely in-chief(postnominal) in the business