Ethics in Accounting

Ethics in Accounting

Ethics in Accounting
By

Pace University – New York
Accounting for Decision Making, MBA 640
Fall 2011

Required Research Paper







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Table of Contents
Number Content Page Number
1 Introduction 3
2 Ethics in Accounting 4
3 Enron Scandal 6
4 Satyam Scandal 8
5 Conclusion 10
6 References 11









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Introduction

• What is “Ethics”?
Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc.
Source: http://en.wikipedia.org/wiki/Ethics

• What is “Accounting”?
Accounting is basically maintaining and providing records of transfer of funds for an individual or business. All the data collected from these records are then summarized in form of reports and statements, which are used by outside parties and the company itself for various uses and analysis.
Source: http://www.investopedia.com/terms/a/accounting.asp#axzz1fbCBL2q0



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Ethics in Accounting

With many scandals and scams coming out regarding the unethical behavior of firms in terms of Business and accounting, higher authorities in governments across the globe are worried. These scams are disturbing and damaging the economy at large. When the economy is already sliding down, governments have started taking extra care and strict rules are being applied to control the damage and prevent future damages. Why are the governments getting so serious?

Accounts of a firm are one of the most important factors that decide that firms credentials. Data from a balance sheet is used to make important decisions and plan for the future.

If a company’s accounts are not transparent and true, it misguides its investors and also its other departments from planning the right way. People depend upon the accountant’s statements and trust it.

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