discussion questions wk5

Why is the situation unethical ? What is meant by the statement , You cannot teach ethics ? How do ethics affect the financial results of a company

One example of an unethical accounting situation is reporting false income or revenue of a firm . Companies tend to decrease their income by increasing their expenses . This is done by adding expenses that should not be included in their financial reports . By doing this , the company would be able to decrease its tax expenses . However , ethical accounting prohibits improper reporting of such financial statements . Also declaring

false revenue not only violates certain laws that would cost a company thousands of dollars for penalty if it would be found guilty of such practice , but it is also a practice that is unethical in itself because it is tantamount to cheating

Ethics is a concept that is not clearly defined to us . A person develops his or her own ethics as he or she grows up . One distinguishes what is right from wrong based on his or her experiences . If a person teaches ethics to another person , then he or she might end up teaching wrong things since a person may have another perspective of what is wrong or what is right

Ethics has a significant effect on the financial results of a company An accountant who is willing to adhere to wrong practices just to declare a higher corporate revenue can certainly make the financial standing of the company appear more favorable . However , adopting unethical accounting practices comes with the risk of being tracked down by the government . On the other hand , an accountant not willing to go beyond the ethical boundaries may not report financial results that are as high as the results of a company who does not practice ethical accounting , but abiding by...