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Breach of Professional Accounting Ethics

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Submitted By kwelcome
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A Breach of Professional Accounting Ethics
Kira Welcome
Professor Dr. Jacob Angima
Financial Accounting ACC 557
October 30, 2012

A Breach of Professional Accounting Ethics Based on the corporate ethical breaches in recent times I believe that the current businesses and regulatory environment is more conducive to ethical behavior due to the workplace. In the workplace ethics develops an atmosphere of respect and tolerance for everyone, by striving to conduct business in a manner that is beneficial to owners, employees and customers. It is very important to have trust and honesty between management, the employees, its co-workers, and between the business and its customers. When ethical lapses of trust becomes rampant, employee productivity declines, loyalty follows, and soon major breaches such as employee theft begin to appear (Calle, 2009). It is said that “Ethical integrity involves reporting others acting in dangerous or illegal way. The term whistleblowers are people who choose to expose wrongdoings, usually at the expense of their careers (Capozzi, 2008).” Ronald Jeurissen, author of “Ethics and Business,” says that whistle-blowing has moral considerations. For instance, the person should be sure the negative consequences to the company of such exposure do not outweigh the benefit to the public.
When professional accounting ethics are breached accountants may expect to lose their job, or may even end up spending time in jail depending on the crime. As part of the largest financial fraud in U.S. history, in March 2009 David Friehling an American accountant was arrested and charged for his role in the Madoff investment scandal. For many years, Bernard L. Madoff Investment Securities LLC books were audited by Friehling & Horowitz, a little-known accounting firm in New City, New York (Wikipedia, 2009). The firm consisted of two principles-Friehling and...

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