Employees have the same opportunity to perform unethical accounting activities as the top executives. If an employee fears getting fired for making a mistake with the accounting transactions, the employee may decide to make adjustments to hide the mistake. This mistake could result in large amounts of money either gained or lost to the shareholders and the organizational could take disciplinary action to correct the problem. Another reason that employees could make unethical decisions with the accounting practice is for sabotage. If an employee becomes frustrated or feels the need to retaliate
The authors explore the ideas of collusion in the workplace and the controls put into place to avoid collusion. They analyze what could go wrong and the motivations and opportunities that are available to allow collusion to be executed in corporations. The author outlines the control efforts that are put into place as the redundant and compensating controls and notes there are more than just one preventative measures in place. By having more than one check point the controls have a system that not only prevents collusion but can also detect the presence of collusion. This source is relative to my paper discussing auditing collusion because it discusses collusion as a whole in a corporation.
Fraud and Risk Fraud is a serious crime that affects individuals and groups differently. Whether it is a small organization or a large firm, fraud remains a relevant risk to the success of a company. Fraud that is uncovered within a company can often indicate the end of that organization's existence, which means that companies have to take special care to protect themselves as well as the many employees who depend on them everyday for survival. The advent of fraudulent cases where individuals within organizations take advantage of a company's profits through technology or other means has created an increasing important need for companies to invest in fraud risk assessments, which helps to protect the company and its members. Cases like Enron, Madoff and other fraud cases have left companies vulnerable regarding how to resolve potential problems that may be related to fraud.
Company mainly focused on maximizing the shareholder value by the CEO and other management’s managerial philosophy. Currently, Hill Country uses a risk adverse strategy to choose their business or project. Hill Country’s industry is high competitive but it kept going well with cost efficiency and quick reaction to customer requirements. From these reasons, Hill Country has few risks. However, analyst and experts present that Hill Country’s excess liquidity with zero debt is going to lose benefit and fail to maximize the shareholder value.
One ethical rule is the Utilitarian Rule. The basic principle of this rule is to provide the greatest good for the greatest number of people. So in applying this rule you could ask if the executives of Enron, Jeffrey Skilling and Ken Lay, made their choice to hide the company’s debt and fool investors into believing the company was thriving based on what would help the greatest number of people. The obvious answer is “no”. This choice was made to benefit themselves at the expense of the 21,000 employees that lost their jobs and the numerous other stakeholders that suffered financial losses.
For example, greed causes businessmen to compete with other businessmen, thus, keeping prices reasonable and forces them to keep up with consumer demands. But then greed could cause businessmen to make not so smart decisions to make more money which may affect everyone in the economy negatively. But I still believe that greed is good for capitalism in the US. I
Position and knowledge are equally important and will also determine the size of the fraud. If it fraudster only has access to data entry then the fraud will typically be less than if the CEO is changing sales records. We can easily see what position the person it in, but how do we know if the person has the knowledge to commit a fraud. The person will have to be smart enough to exploit internal control weaknesses and then use position, function and access to the greatest
The precise definition is that TBTF companies are certain financial institutions that are so large and so interconnected that their failure will have a disastrous effect throughout the economy. So, if the cost of a bailout is less than the cost of the failure to the economy, a government will provide assistance to prevent its failure. An important point is that "too big to fail" doesn't mean that a financial institution can’t fail, but that it can’t be allowed to do so. Why TBTF institutions appear? The advantages are obvious.
Describe how professional values and ethics can influence career success: As previously defined professional ethics are a moral value one takes in the specialized knowledge of their business which can discern over time. Most business owners are generally in dispute with moral obligations and ethical conduct in the work place environment. For instance, some business owners may have clients that receive special benefits or items that they can sometimes bribe or use to their advantage. This is both ethically and morally wrong. Although it would appear wise to accept gifts or provide gifts to another company to earn their business you are in fact interfering with normal business practices and in most companies can be a reason for termination for such actions.
The social responsibility of business is to increase its profits while maintaining integrity and loyalty to its consumers. Since responsibility is a human characteristic then it is the duty of the managers to ensure they meet the desired outcome of the owners/executives. In most instances the desired outcome is to make as much financial profit while adhering to all business laws and ethical practices. Business ethics relates to the good or bad things that occur in business practices. Many times the bad situations that may arise do not happen on purpose and the effects that they have on the consumer may be short lived.