Ethical Issues in Financial Accounting - 2059 Words

Ethical issues arise in the midst of financial accounting on a frequent basis. Several tempting situations occur by the hour in firms of every kind. Society pressures individuals to do dishonest things in order to appear acceptable in the workplace, especially when working in finance or accounting. The majority of corporate America has disregarded the concept of ethics in the workplace. Although this is not morally correct, it happens on a daily basis in today’s world. Ethical issues, such as pressure from management to complete dishonest acts, greediness in the workplace, omitting financial records and breaking confidentiality with company records are some important problems financial accounting companies must address in order to run corporate America in a proper manner. Before developing a detailed perception of the ethical issues in financial accounting, one must know the concepts and ideas behind financial accounting. Financial accounting is a â€Å"field of accounting th at treats money as a means of measuring economic performance instead of as a factor of production† (Financial Accounting, 2014, para. 1). This particular field â€Å"encompasses the entire system of monitoring and control of money as it flows in and out of an organization as assets and liabilities, and revenues and expenses† (Financial Accounting, 2014, para. 1). It is evident that the structure of financial accounting allows much leeway for an individual to cheat the system in several ways. Employees in theShow MoreRelatedEthical Issues Of Financial Accounting984 Words   |  4 Pagesis the reporting to whom. Financial accounting is meant for external reporting to all who are interested in the company’s activities. But in management accounting it is altogether an internal reporting aimed at helping managers in discharging their responsibilities. Financial accounting basically contains monetary information. 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