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Accounting Malpractice

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Accounting malpractice
Recently, the question of liability has become more prevalent in the practice of public accounting. Generally accepted accounting principles remain a set of standards and procedures that are governed within the accounting industry. Additionally, the American Institute of CPA’s code of professional conduct demands all financial statements in accord with GAAP (cheese man. 2015). Accountants’ performances reflect the company’s financial situations and the role of an accountant is to provide information to the company regarding the finances of the company. Accountants are held accountable for every financial statement within the company If something goes wrong with the financial statements, the possibilities of a major disaster can occur because of the unethical practice of accounting.
In order to prevent the problem, accountants should use some programs that provide many advantages to keep numbers real and to prevent errors or unethical practices. The company can use methods that could be used are random audits and inspections quarter or semiannually. If the problem is discover on time, the company could be saved, but if the problem persists, the company could end up in bankruptcy or in a big law suit case. Finances are very serious and need to be carefully revised. Everything related to finances need to be done by the book. Accountants are truly held accountable if something goes wrong with numbers, especially if there are inconsistencies with payments or expenses. The worse thing about unethical accounting practice is that can lead to unemployment of many people and usually the consequences are very serious. We all know how Lehman brother’s bankruptcy in 2008 has impacted the economy negatively as a whole. Later on “Lehman brothers were caught using a different name Hudson Castle, a small company to move a number of financial

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