ACC618 Week 1 Discussion 1 Ethical Considerations

The CEO is asking for something I don’t feel comfortable doing, even though it wouldn’t need any direct record manipulation. Although this may not be a case of outright manipulation, it does involve the concealment of relevant financial information and thus constitutes a falsehood. Means unknown Investors and the general public are entitled to data that is both accurate and non-misleading. Potential investors who don’t have all the facts regarding the company’s problems can’t make an informed decision about whether or not to invest in it [Dec18]. Accountants are obligated to be forthright and honest in all business dealings by the ethical concept of integrity. Not supplying false information falls under this category, as does not leaving out or confusing material that must be disclosed [Wal11]. As an accountant, it is not my responsibility to bend to the CEO’s will when it comes to making decisions or maintaining high ethical standards.

Having a reputation for honesty and reliability is also an ethical factor. An accountant who seeks to conform simply with the stringent technical parts of a standard is not trustworthy [Min95], even though strictly speaking, deleting financial information is not considered to be manipulation of records. Maintaining my integrity would prevent me from submitting my professional judgment that the omission of financial records is improper in the face of the CEO’s requests for “technical compliance,” which might undermine public confidence in the company. The public has faith that I have provided my professional services with proper care because of my credibility as an accountant. In this situation, I would have to stand firm against the CEO’s demands and keep the faith of the public and investors by insisting on the integrity of the company’s financial reporting.

References

Decker, F. (2018). Ethical Issues Facing the Accounting Profession. Retrieved from Houston Chronicle:https://smallbusiness.chron.com/ethical-issues-facing-accounting-profession-18307.htmlLinks to an external site.

Mintz, S. (1995). Virtue Ethics and Accounting Education. Issues in Accounting Education Vol. 10, Issue 2,pp. 247-267.

Walsh, B. (2011). Ethical Considerations for Accountants. Professional Scepticism: Raising the Bar, (pp. 1-16). Dubai FSA Regional Audit Conference.