Assignment 1: Review of accounting ethics

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Assignment 1: Review of Accounting Ethics By February 1, 2013

ACC 557: Financial Accounting Oleksii Morgun Strayer University at Arlington Campus School of Business Administration (M.S. Accounting Program)

Assignment 1: Review of Accounting Ethics

2 Abstract This research writing is to describe the following: 1. Given the corporate ethical breaches in recent times, assess

whether or not you believe that the current business and regulatory environment is more conductive to ethical behavior. 2. Based on research, describe organization, the accounting ethical

breach and the impact to the organization related to ethical breach. 3. Determine how the organizational ethical issue was detected and

how management failed to create ethical environment. 4. Analyze the accounts impacted and/or accounting guidelines

violated and the resulting impact to the business operation. 5. As a CFO, recommend which measures could have been taken to

prevent this ethical breach and how each measure should be implemented in future.

Assignment 1: Review of Accounting Ethics

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Before the Enron and Andersen scandals, relatively little public attention was paid to the truthfulness of financial reporting. Of course, no one believed every company was beyond any suspicion of misrepresenting its activities. But, by and large, it was taken for granted that the reports certified by publicly recognized auditors sufficiently and accurately reflected companies’ financial performances. Recently, however, this confidence has been greatly shaken. Serious doubts and even cynicism about current reporting practices have spread,