Professionalism and Ethics of Accounting : Assignment

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Running head: PROFESSIONALISM AND ETHICS IN ACCOUNTINGProfessionalism & Ethics in Accounting and History of accountingName of the University:Name of the Student:Authors Note:
PROFESSIONALISM AND ETHICS IN ACCOUNTING1Table of ContentsQuestion 1............................................................................................................................2a) Ethical Issues Faced by Joey.......................................................................................2b) Ethical Egoism Based Actions....................................................................................2c) Advice Based on Utilitarianism...................................................................................3d) Advice Based on Deontological Ethical Perspective..................................................3e) Most Suitable Ethical Theory Based Action...............................................................4Question 2............................................................................................................................5a) Major Changes in Accounting Regulation and Practice..............................................5b) History of Accounting and Changes in Related Practices...........................................7References............................................................................................................................9
PROFESSIONALISM AND ETHICS IN ACCOUNTING2Question 1a) Ethical Issues Faced by JoeyFrom the case study it is evident that there are certain ethical issues that are faced byJoey. It is observed that Tube needs considerable capital injection for modernizing its plant andequipment. The machineries that are available are incapable of manufacturing new productsbecause of its poor quality level. There also has been certain prolonged industrial concern withthe labor union for which the business is performing below required level (Kelly, 2017).Situation of the company is observed not to be fit enough to gain capital from the bank. Despitesuch situation, Joey has been asked by Mary to lie about the financial condition of the companyto the bank. Joey has been asked to tamper the financial report of the company in order to gaincapital from bank. Mary pressurized Joey to mention false financial statements for the companyor else it might result in Tube Company’s insolvency.b) Ethical Egoism Based ActionsEthical egoism can be defined as normative ethical position which moral agents considerto do that is in their individual self interest. It is different from psychological egoism that claimsthat individuals can only act within their individual self interest. Based on this theory, Joey isrecommended that Joey acts as per Mary’s advice to overstate the financial statements of thecompany. This is for the reason that such overstatement can help Tube Company to gain capitalfrom capital as it will show that it is producing new goods as per maintaining internationalstandard and is doing well in the global market (Mintz, 2016). Ethical egoism theory provideswith such recommendation for the reason that it does not take into account the aspects those are
PROFESSIONALISM AND ETHICS IN ACCOUNTING3fair to all human beings. It focuses on a belief that people must act in the best interest to solvethe immediate situation faced by the company.c) Advice Based on UtilitarianismUtilitarianism ethical theory is focused on the aspect whether the action benefitsindividuals more than it can harm them. In this theory the self-interests of the individual are setaside and all the actions those are recommended are focused on improving the good of a hugenumber of individuals (Marzuki et al., 2017). Recommendations based on this theory is leanedtoward the organizations which offers services and goods along with doing the least harm alongwith that it condemns organizations that results in increased chain than benefit to the others.Within this theory, the advantages of this ethical theory that can be attained by Joey includes thatshe can make sure the greatest services for maximum pople. Through employing this ethicaltheory, the person can also speed up the decision making process of the company towards takingright decisions on raising capital in a situation where the company is facing losses (Marzuki etal., 2017). Utility along with the increased happiness principles holds that the actions are correctin proportion. This is because this is likely to promote contentment in the company environment.This ethics theory is applicable to the accountants as it makes sure that they are truthful, haveintegrity, follows advices on maintaining commitments and avoids harming other people. Thisethical theory can encourage Joey to make people work for them along with the consumers of thecompany to do the same (Marzuki et al., 2017).d) Advice Based on Deontological Ethical PerspectiveDeontological ethics theory is focused on maintaining fairness and takes priority over allthe consequences that the actions might have. The major focus of this theory is to consider rights,fairness, commitments and conducting the right thing. This theory is applicable in the case study
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