Critical Review of Ethics in Finance and Accounting Journal

This essay provides a critical review of the journal of ethics in finance and accounting, examining various aspects crucial to the field. It delves into control measurement and ethical behavior within firms, highlighting the importance of sound internal and external controls to mitigate unethical practices driven by performance-based incentives. The essay further explores misbehaviors in accounting and finance, including fraud and the significance of corporate governance and ethical standards in preventing such issues. Professionalism in accounting and finance is discussed, emphasizing the need for ethical standards and the role of gatekeepers. The essay also addresses responsible investment, corporate reporting, and the integration of ethical considerations. The conclusion suggests areas for improvement, emphasizing the impact of human activities in business finance and accounting, and the need for effective standards to control unethical situations.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author Note:

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Introduction
The essay gives a critical review of the journal of ethics in finance and accounting.
The journal talks about the different aspect of an exceptional issue related to the working
needed associated controlling measurement along with behaviour towards ethics, the miss
happening that is related to professionalism required in accounting, ethically investing the
finances and accounts along with reporting the same. The essay critically reviews the above
mentioned aspects as it is noted as the central base to the finance and accounting. The
different perspective that has been highlighted by the authors are also critically reviewed. The
essay is been concluded on reviewing the suggestions stated in the journal with stating the
own perspective on the aspects highlighted.

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Discussion:
Control Measurement and Ethical Behaviour
The firm has a basic theory of that is too based on the purposes of value
maximization. The outcome of the theory results in competent consequence on a social basis.
The authors stated in the journals that this case does not persists all the time. It is often seen
that actual accounts are often altered in order to maximize value. This results in unethical
behaviour along with poor decision making. To control the unethical behaviour the
organizations or companies shall have sound internal as well as external control.
In management controlling system it was pointed that most of the firm`s incentive
system is relied upon the measurement of performance. This has a negative that leads to
misbehaviour. As the performance measurement may off track the employees from the main
objective dragging towards incentive. This would results in unethical as well as
unprofessional. The authors has tried to aware about the crisis by taking support of Toshiba
scandal. The entity had exaggerated its gains to meet the target. The New York Times
pointed out that the issues persisted all over around the entity among the management. This is
a clear example that out of unethical behaviour that is being prevailing since long time to
gather economic benefits. The article points out the need to overcome the problem with an
effective control by maintain the base of equality. (Bampton & Cowton, 2013).
Misbehaviours in Accounting and Finance
The misbehaviour suspects the probability of fraud in an entity taking into
consideration of pressure, rationalization, opportunity and incentive. Fraud can be one due to
absence of unawareness about the actions, perception coupled with justification along with
reasoning. The journal discussed about the six types of frauds that prevails among corporates.
Three American and European pointed the possible reason of fraud could be lack of corporate

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governance, distorted incentive schemes, or poor management that lack ethical sound.
Oppong (2017). Progress an exemplary for identifying remunerations exploiters using fiscal
statement proportions from an illustration of Spanish registered companies. This would help
to find exploiters and they would help as being investment specialists. Pointing out the moral
measurement characteristic for partners in entry as well as exiting including the intentions
while taking decision along with moral verdict. (Smith, 2017). So, a numerous- lens ethical
perception was applied to analyse the issue. Further different authors tried to explain the
difference between two types of trade credit operating and financial.
Professionalism in Accounting and Finance
It was that the rate of scandals have been increasing to get the short- run outcomes.
This could be avoided by better professional capability so that the actual priorities can get
fulfilled. There is an essential need of ethical standards in accounting and finance. Rule ask
for maintaining the records that represent the true and fair view. Through which it can be said
about the fiscal position. In this line there lie a questionable statement which has an answer
that gives a delineate views. Some of the authors pointed out the reason that indicated
incapability of regulatory modifications. The second paper talked about the gatekeeper
liability. On the moral ground the gate keeper has the right to object. The author even puts his
query on the normative sustenance for aiming mediators instead of main offenders.(Bampton
& Cowton, 2013). He pointed that outcome of strategies that are adapted by the gatekeepers
are being avoid in the profession of accounting mainly in the jurisdiction of custom
assortment, the anticipation gap, along with the auditor reimbursement.
Responsible Investment
The empirical research on signatory’s survey that was conducted by PRI in a 5 year
phase that there were numerous factor which were supporting salience of the PRI in regard to
shareholder. It was seen that investing responsibly earned encouragement by many

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institutions and US. Since 2006, it was backed by the principles of PRI. There was an aide
memoire that indicated that choice of fiscal instrument was available for responsible
investment that was also a promotion towards ethical value. According to the situational
problem and considering behavioural economics along with nudge theory a concept wise
structure was design to uplift the effectiveness of policy-making for sustaining and
responsibly investing. (Gitman, Juchau & Flanagan, 2015).
Corporate Reporting
The article had stressed on ethics in corporate reporting. The analysis of superiority of
corporate reporting statement that is presented by largest fiscal institutions. The conclusion of
the analysis showed positivity of several factors on reporting. It recognized quality standard
was based in high CSR regulations in most of the countries. Size of firm did not impact on
the quality. A further assistance was provided to the companies for research including
improvement of report. Integrated reporting was explained as a procedure that is based on
unified thinking about creating value regarding time and communication. Reviewing the
effect of integrate reporting through empirical analysis on business model including their
economic changes. The outcome recommendation was that integrated reporting is a bigger
apparatus for the integration of social, governance, including environment issues only in
certain cases. (Chun et al., 2013).

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Conclusion
The intent of this essay is not solely to be critical but to elevation needed argument
and, possibly, even produce fresh tools including concepts that would help in moving the
profession frontward. The paper had pointed about the issue relating to integrating reporting,
ethical behavioural issue relating to professionalism and accounting. through review it was
found that there are some areas that need improvement and the sets of standards shall be
highly effective to control the unethical situations. The article aimed at recommending
solution to the issues that persists. The business financial and accounting involves human
activities. Actuality intentional activities, they can be practical to aid the source of
respectable or on opposing for selfish welfares or to damage others. This basically seen
during managing earnings from frauds and through manipulation.

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Reference
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.
Chun, J. S., Shin, Y., Choi, J. N., & Kim, M. S. (2013). How does corporate ethics contribute
to firm financial performance? The mediating role of collective organizational
commitment and organizational citizenship behavior. Journal of Management, 39(4),
853-877.
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson
Higher Education AU.
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson
Higher Education AU.
Louwers, T. J., Ramsay, R. J., Sinason, D. H., Strawser, J. R., & Thibodeau, J. C.
(2015). Auditing & assurance services. McGraw-Hill Education.
Oppong, R. (2017). Successful Strategies Used by Small Business Owners for Company
Sustainability.
Smith, M. (2017). Research methods in accounting. Sage.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.