There is definitely no wrong ethical behavior in the professional world. This statement is exceptionally important for publicly traded companies and their accounting practices. From financial officers, auditors to auditors, and so on, does not affect stakeholders if these people act ethically
. Unfortunately, for a number of reasons, we may assume that we are not ethical in making financial information. The most obvious reason may be simply for the sake of self-interest.
You can weaken the accountant's funds from your employer. Or maybe a financial officer of a publicly-funded company can make financial statements so that it looks like the company would be much better performing than actually because it wants to increase its stock portfolio.
Another example of why there might be unethical behavior from corporate pressure. Your Accountant may feel you are exerting pressure on your client to provide false information. Or perhaps the CFO has experience in meeting the board of directors, the president, owners or shareholders of the company; or he may be worried about losing his job.
The accountant may decide to work in a business, even if there is a conflict of interest. If the accountant has a fixed or substantial stake in a company, he or she can not be the ideal person to prepare financial statements for certain companies. Finally, and perhaps the most common form of unethical behavior, is the failure of the accountant to undertake a thorough analysis when preparing and reviewing financial information. There are many who prefer short cuts in life; and frankly, this is simply unacceptable if it is expected to work in a professional mansion
There have been numerous laws at both the state and national level aimed at preventing one from implementing unethical accounting practices. In addition to these laws, numerous recommendations have been made to implement changes to improve professional ethics.
Two of these people who spent a lot of time on this subject, Jane B. Romal and Arlene M. Hibschweiler. According to the CPA Journal, June 2004, Romal and Hibschweiler suggested that "States should be encouraged to give ethical training as part of CPE requirements"
This concept forced the Texas Public Accounting Board (TSBPA) training program for accounting teachers, CPAs and accounting students. This meant that every license was awarded a four-hour ethical course every two years on the College's Code of Conduct. The Arizona State Accounting Board is obliged to take each Arizona CPA to an ethics class to renew the license.
In addition to state-level assignments, the Sarbanes-Oxley Act. Section 406 of the Sarbanes-Oxley Act requires that publicly traded companies publish code of ethics for senior executives. The purpose of the Act was to promote honest and ethical conduct; full and accurate disclosure in periodic reports; and compliance with applicable governmental rules and regulations
Even in accordance with the Romal and Hibschweiler, TSBPA and Sarbanes-Oxley laws; no one can control the integrity of the other. Some individuals, regardless of their dealings, always seek personal gain, even if this continues unethical. The purpose of this article is to help people in teaching unethical accounting practices why they are occurring and that we as a nation can promote ethical behavior