Accountant as Whistleblower An accountant may face the ethical dilemma of reporting discovered accounting violations to the Financial Accounting Standards Board.
His career includes public company auditing and work with the campus recruiting team for his alma mater. Further, investors of the company may be able to successfully sue the company and its owners for civil damages to cover their losses.
Loss of Human Capital Many good employees do not want to work for a company that is unethical. Accounting professional standards require that accounting work is performed ethically and with integrity.
Ask what you would do if your mother were watching. Range of experiences By the end of there were over 38, practising accountants in Ireland; the document portrays a range of experiences and attitudes toward ethics. But how does it impact on accountants if ethical guidelines are not adhered to?
Unethical accountants could easily alter company financial records and maneuver numbers to paint false pictures of company successes. Business Reputation Poor ethics can also inflict damages on the business' reputation and trustworthiness of its stakeholders, such as customers and business partners.
Even though she was only one of several medical professionals working for a small business that made house calls to patients, the business as a whole received negative publicity that will require considerable marketing to overcome.
For publicly traded companies, the Sarbanes-Oxley Act prescribes fines and prison time for knowingly falsifying financial information.
In some cases, unethical behavior is also illegal and can result in fines and even jail time for executives. If you pressure company accountants to behave unethically, these accountants can't uphold the standards of their profession, and they might risk loss of their license or credentials.