Business Ethics and Decision Making
Added on 2020-03-16
20 Pages6573 Words52 Views
Leadership ManagementProfessional Development
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ACCT19083 Final AssignmentTerm 2, 2017Student ID: Student name..............................................................Marker’s overall comments:The markers may include any final comments here.Overall Mark (Total) out of 40:0
Part A Question 1: Did Buddy, Troy, and Betty give informed consent to making the requested accounting adjustments? Explain your answer. You should also explain the concept of "informed consent" before answering the question.Informed consent is when an individual has the decision to do make willingly whether to participate in a particularaction in the organization. In accounting, it is essential to follow international accounting code of ethics to ensure that there is a smooth flow of operation for the organization (Goetsch & Davis 2014). The act of getting information to change something in accounting requires a proper evaluation of the effects to the stakeholders andshareholders of the organization. Adequate information about accounting needs to be considered when making adjustments to the financial data in the system. The change of expenses or account receivable for a company has legal consequences to the individual involved as it offers misleading information to the shareholders of the company. It is essential to state the right amount in accounting to reduce negative consequences of adjusting accounting figures. Overstating and understating require informed consent from the top management as it affectsthe performance of the company (Smith 2017). Incorrect capital expenses by the accountants provide an inaccurate financial report which is not reliable to the shareholders and stakeholders of the company.Buddy, Troy, and Betty had the informed consent to adjust the accounts of WorldCom from the Chief Financial Officer Scott Sullivan and Financial Controller David Myers. This was to make the stakes of the company appear higher to the stakeholders of the company while the company was experiencing loss. The manual adjustment of accounts negatively impacted the business as it had to file for bankruptcy from the fraudulent scheme of changingaccounting figures. The accountants were required to reduce the expense to meet the earning expectations of thecompany. Manipulation of accounts would provide wrong information to the shareholders of the company (Zadek, Evans & Pruzan 2013). Buddy, Troy, and Betty were mid-level accounts who were required to take orders from the top management with the decision being unethical to the operation of the business. Physically adjusting the financial result would lead to jail terms to the people who were involved in the process. Buddy, Troy, and
Betty were uncomfortable to make the account adjustments as it is not ethical, but they had informed consent from the top management of the company where they had to follow the stated orders to keep their jobs. Conflict of interest between the organization management and staff requires being handled through the use of a proper ethical policy (Bampton & Cowton 2013). Incorrect capital expenses about the company make it hard to identify the real value of the company making it hard to come up with a valid financial decision. References:Bampton, R., & Cowton, C. J. (2013). Taking stock of accounting ethics scholarship: A review of the journal literature.Journal of Business Ethics,114(3), 549-563.Goetsch, D. L., & Davis, S. B. (2014).Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.Smith, M. (2017).Research methods in accounting. Sage.Zadek, S., Evans, R., & Pruzan, P. (2013).Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge.Marker’s Comments: The marker will provide feedback here.Mark (5):0Exceeds Expectations(High Distinction) 85-100%Exceeds Expectations (Distinction) 75 - 84%Meets Expectations (Credit) 65 – 74%Meets Expectations (Pass) 50 – 64%Below Expectations (Fail) below 50%Demonstrates a balanced and veryhigh level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.Demonstrates a balanced and highlevel of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.Demonstrates limited knowledge ofcore concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.Quality of writing at a very high standard. Paragraphs are Quality of writing is of a high standard. Paragraphs are mostly Quality of writing is of a good standard. Few grammar, spelling Some problems with sentence structure and presentation Quality of writing is a very poor standard so barely
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