Reporting Practices and Ethics
In financial management there are four components that include: 1.) planning; 2.) controlling; 3.) directing and organizing; and 4.) making decisions are (jblearning, 2010) tools enabling managers to identify and accomplish objectives, ensure plans are followed, ensure an effective use of resources, and make informed choices (Baker & Baker, 2011). The generally accepted accounting principles are the uniform least possible guidelines to and standards of financial reporting (Office of Financial Management, 2001). General financial ethical standards, determined by the Financial Accounting Standards Board, are standards that are general and determine the way accountants in the United States conduct and format reports (Morley, 2014). Abuse and fraud account for as much as 15 percent in annual expenditures in health care in the United States (Rudman, 2009). Independence, integrity, and objectivity make up the three components of ethics (Gallup, 2014).
The four components of financial management are: first.) planning; second.) controlling; third.) directing and organizing; and fourth.) making decisions. In summarizing the components of financial management; in the area of planning the steps are identified by the manager to be taken in accomplishing objectives of the organization. In the area of controlling, the manager ensures areas of the organization are following the established plans. One method utilized is studying current reports comparing the reports to reports taken from an earlier period of time (jblearning, 2010). In directing and organizing managers make decisions in the way the organizations resources should be used to effectively carry out established plans. The area of directing involves a daily basis of keeping the results of organizing running and functioning with the least waste of effort and time and in the best manner. The purpose of directing is providing daily supervision and ensuring an effective use of resources. In the area of making decisions, choices are made from the alternatives available (Baker & Baker, 2011). All decision making relies on data and the most important everyday jobs are evaluation and analysis (jblearning, 2010).
In summarizing generally accepted accounting principles (GAAP), they are the uniform minimum guidelines to and standards of financial reporting and accounting. GAAP establishes appropriate classification, measurement, and standards for judgment for financial reporting. Adhering to GAAP provides a degree of reasonable comparability in the financial reports of local and state governmental units (Office of Financial Management, 2001).
In summarizing general financial ethical standards which are determined by the Financial Accounting Standards Board (FASB), they are general standards determining the way in which accountants in the United States conduct and format reports. Since accounting records are seen by people outside of the organization, for transparency reasons they need to be efficient and follow set standards (Morley, 2014).
In discussing abuse and fraud; it is projected abuse and fraud account for three to 15 percent of yearly expenditures in the United States in health care. A report from the Association of National Healthcare Antifraud suggests that the range of cost is between three and ten percent, and the Congressional Budget Office placed an estimated ten percent cost and a report from the United States Chamber of Commerce places cost at 15percent. Utilizing this data the estimated fraud costs and abuse are from 100 to 170 billion dollars a year. To help in combating abuse and fraud the 1986 False Claims Act (FCA) targets abuse and fraud in health care (Rudman, 2009).
In discussing corporate compliance and ethics; Gallup (2014)”According to the American Institute of CPAs, ethics are made up of three components: independence, integrity and objectivity” (). In discussing the component of independence medical accounting personnel are required to avoid conflicts of interest. With medical services and vendors conflicts of interest can lead to inflated prices in services and products in attempting to maximize earnings. An example of a conflict of interest affecting patients is when an anesthesiologist or hospital uses specific drugs for the patient not because it is the right/best choice but because financial incentives are offered to use the drugs (Gallup, 2014).
In discussing the ethical component of integrity it requires personnel in accounting to maintain a trustworthy appearance and it is connected to the component of objectivity. Objectivity and integrity require accounting personnel in health care to avoid situations appearing on a superficial level to be conflicts of interest. In providing an example from the article reflecting ethical standards; accounting personnel in health care should not act or operate businesses as a freelance consultant for health care vendors or competitors due to it may appear the costs passed to patients are inflated lining the pockets of an accountant moonlighting (Gallup, 2014).
In conclusion, the tools that enable managers to identify and accomplish objectives, ensure plans are followed, ensure an effective use of resources., and make informed choices are the components of financial management (Baker & Baker, 2011). GAAP represent uniformed minimum guidelines to and standards of financial reporting (Office of Financial Management, 2001). General financial ethical standards are general and determine the way in which accountants in the United States conduct and format reports (Morley, 2014). Abuse and fraud account for up to 15 percent in annual expenditures in the United States (Rudman, 2009). Ethics are made of three components; 1.) Independence; 2.) Integrity; and 3.) Objectivity (Gallup, 2014).

References
Baker, J., & Baker, R.W. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers
(3rd ed.). Sudbury, MA: Jones & Bartlett.
Gallup, B. (2014). Accounting Ethics in Health Care. Retrieved from http://smallbusiness.chron.com/accounting-ethics-healthcare-36147.html
Jones and Bartlett . (2010). Health Care Finance Overview. Retrieved from http://samples.jbpub.com/9780763778941/78941_02_CH01_001_010.pdf
Morley, M. (2014). Accounting Principles & General Financial Ethical Standards. Retrieved from http://smallbusiness.chron.com/accounting-ethics-healthcare-36147.html
Office of Financial Management. (2001). 80.20 Generally Accepted Accounting Principles. Retrieved from http://www.ofm.wa.gov/policy/80.20.htm
Rudman, W. J. (2009). American Health Information Management Association. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2804462/