200-300 word discussion post utilizing 2 references
The Importance of Getting the Numbers Right and the Financial System
Accounting provides accuracy in financial statement reporting, following legal reporting guidelines. The assumptions within the current laws are that without independent audits businesses would keep more of shareholders’ money for themselves. But a Christian perspective sees accounting practices as faithfulness in stewardship of owners’ resources, rendering to Caesar in terms of fair tax payments, and creating relationship of trust (Rae and Wong, 2004). Through financial management, businesses take capital and manage their growth. The assumption behind investing in Capital Markets is that security prices at any time ‘fully reflect’ all available information. A market in which prices always “fully reflect” available information is assumed to be efficient and not favorable to any one group of investors. But a Christian perspective on financial management would view the opportunity to create systems and demonstrate accountability in the faithful and ethical management of debt; as well as supporting the development of a theology of profit and managing wealth. Please consider the points made below by the authors, and respond to these thoughts with your own argument for or against their positions in your initial discussion post:
- Rae & Wong (2004) recommend that employees in financial services fields “provide service that seeks client’s best financial interest even if it conflicts with one’s own self-interest” (Rae & Wong, 2004, p. 322).
- Rae & Wong (2004) recommend the ethical treatment of clients, and that sales people explain all the relevant information truthfully, and in an understandable and non-misleading manner (Rae & Wong, 2004, p. 307).
- Rae & Wong (2004) encourages Christians in financial services positions participate in truth telling that “involves forthright and accurate financial accounting” (Rae & Wong, 2004, p. 323).
Rae, S.B. and Wong, K.L. (2004) Beyond Integrity, 2nd edition. Grand Rapids, MI: Zondervan.