Financial and Management Accounting Project 1 Part 2

This project explores various topics related to financial and management accounting, including financial accounting and trust, accounting ethics, good financial accounting practices, corporate scandals and outcomes, and financial issues/crises at small business or corporate level.

FINANCIAL AND
MANAGEMENT
ACCOUNTING PROJECT 1
PART 2

TABLE OF CONTENTS
MAIN BODY..............................................................................................................................................3
Financial accounting and trust 3
Accounting Ethics .........................................................................................................3
Good Financial accounting practices.......................................................................................................3
Corporate Scandals and outcomes, causes & consequences....................................................................4
Financial issues /crises small business or corporate level........................................................................4
REFERENCES............................................................................................................................................5

MAIN BODY
Financial accounting and trust
Financial accounting is process of recording, summarizing and controlling resources
through making strategies. In addition to this, it is related with article which states that trust is
important ingredient which sets the foundation of firm. From the analysis it can be understood
that accounting firm should have separate auditing practices for ensuring that whole operational
activities are conducted in trustful manner (Accountancy giants face revamp amid criticism,
2021). According to financial reporting councils high profile organization should implement
trustful practices for making assurance to higher authorities in turn no external party get
influenced from the changes expected by company for improving quality of financial accounting.
It has highlighted the fig four firms such as KY, PwC, KPMG & Deloitte for playing criticism
taxpayer on the hook. The Specific article focuses on formulating transparency in working
pattern of UK companies by implementing quality & effectiveness through creating operational
separation of financial practices.
Accounting Ethics
It is related with fair practices that business need to take into consideration for
safeguarding the interest of stakeholders. Several ethical issues occur while conducting any
business activities. From the perception of various accountancies regarding ethical sensitive
scenarios among internal business accounting activities. To gather this information it has focused
on evaluating the perception of certified information. It is related with push back against charges
of accounting & ethical irregularities (Defending Valeant Pharmaceuticals, Top Investor Says
Drugmaker's Lust for Profit Went Too Far, 2017). This has appointed new directors for claiming
investor concerns by Valeant pharmaceuticals international Inc. in which various measurable
actions has been taken to implement for claiming of accounting frauds & illegal business
practices.
Good Financial accounting practices
Those business operating activities that are conducted with the positive intentions are
referred while recording financial transactions are stated as good accounting practices. From the
view point of article it can be evaluated that there are several organization that indulged into

fraudulent activities. In particular news it has been stated that business does not need to consult
any another consultancy for implementing changes to bridge gap between expectations and
reality (Chauvin guilty verdict: 'Finally we can breathe' - BBC News, 2021). The auditors are
criticized to be in collapse with big companies like BHS and Wire card. By evaluating it the
result came to an end which articulates that there are differences between the all levels of
expected performance. The aim of this is to move towards targeted action for visualizing fake
financial accounting practices. The main purpose of this is to make explanation that business
utilizes this in order to make fraud lent outcomes.
Corporate Scandals and outcomes, causes & consequences
This has negative impact on organizational business activities. It evaluates the Satyam
Scandal a global IT company which comprises the list of companies involved in financial
fraudulent activities (The Satyam Scandal, 2021). In addition to this, it overstates the company’s
revenues and profit holding1.04 billions. It is conducted for overcoming competitive pressure the
profit shown does not exist in reality. It is has heavy negative influence on company’s image.
Financial issues /crises small business or corporate level
It is related with the 13 challenges have been highlighted by article refereeing to business
development of industry. Avoiding prevailing pressure can help business to neglect stated issues
(13 Challenges Facing Business Development Leaders Today, 2021.). The reasons can lead to
issues at business level are dependent on alignment with products, sellers performance, lack of
ownership, budget, digital relationships, etc. In addition to this, it needs to be improved for
overcoming this shortcomings.

REFERENCES
Online
13 Challenges Facing Business Development Leaders Today. 2021. [Online] Available through:
<
https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2020/03/
23/13-challenges-facing-business-development-leaders-today/?
sh=2081592d6650>
Accountancy giants face revamp amid criticism. 2021. [Online] Available through:
https://www.bbc.com/news/business-53307572
Chauvin guilty verdict: 'Finally we can breathe' - BBC News. 2021. [Online] Available through:
<https://www.bbc.com/news/av/world-us-canada-56825595>
Defending Valeant Pharmaceuticals, Top Investor Says Drugmaker's Lust For Profit Went Too
Far. 2017. [Online] Available through:
<https://www.forbes.com/sites/antoinegara/2017/10/29/valeant-ruane-
cunniff-profits-ethics-legal-illegal-philidor-rx/?sh=648b62477186>
The Satyam Scandal. 2021. [Online] Available through:
<https://www.forbes.com/2009/01/07/satyam-raju-governance-oped-
cx_sb_0107balachandran.html?sh=2a359a23044c>