Financial Statement Analysis

Running Head: FINANCIAL STATEMENT ANALYSIS
FINANCIAL STATEMENT ANALYSIS
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1FINANCIAL STATEMENT ANALYSIS
Ethical Breaches
Business ethics is the study as well as the practices and it in the form of the applied
ethics or the professional ethics, which helps in examining the ethical principles as well as
moral or the ethical problems, which arises in the business environment. It is applied to all
the aspects of the conducts of the business and it is relevant for the conduct of the individuals
as well as entire organizations. The recent major ethical breaches of recent past, which have
led to increasing of the scrutiny in the field of financial reporting as well as analysis is of
Enron Corporation. It was the American energy company that is based in Houston. The
scandal of the company has led to the bankruptcy of the corporation as well as dissolution of
largest accountancy and audit partnership, Arthur Anderson around the world. The failure of
the company during 2001 has represented major failure as well as it was one of the biggest
bankruptcy of the business organization, which have highlighted the moral failings of
corporate in America. Enron Corporation’s downfall as well as the imprisonment of the
several group of leadership was shocking and has violated the ethics. The misplacement of
the morals has killed the company and has injured everyone that has involved with the
company. The company was charged with manipulating knowingly the accounting rules and
they were indulged in masking enormous losses and the liabilities of the company (Su, 2014).
Moreover, there has been major changes in the way business organizations helps in
managing and minimizing the risk. It is vital for every business organization. They develops
the strategy, which are used by organizations for the minimization of the risk. Therefore,
business ethics plays vital role for the moral judgements of the business organization. The
decisions that are taken in the business organizations is influenced by the practices and
culture of the organizations. Hence, the organizations should maintain the business ethics by
following the code of conduct (Ailon, 2015).