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Assignment 1 Review of Accounting Ethics






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Running Head: ACCOUNTING 1
Review of Accounting Ethics
Assignment 1 Review of Accounting Ethics
Many organizations have been in the news over the past few years due to accounting ethical breaches that have
affected their customers, employees, or the general public. Search the internet or the Strayer Library to locate a story
in the news that depicts an accounting athical breach. You may select from any type of organization about which you
have information or a curiosity.
Write a four to five (4-5) page paper in which you:
1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business
and regulatory environment is more conducive to ethical behavior. Provide support for your answer.
2. Based on your research, describe the organization, the accounting ethical breach and the impact to the
organization related to ethical breach.
3. Determine how the organizational ethical issue was detected and how management failed to create an ethical
4. Analyze the accounts impacted and/or accounting guidelines violated and the the resulting impact to the business
5. As a CFO, recommend which measures could have been taken to prevent this ethical breach and how each
measure should be implemented in the future.
6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not
guality as academic resources.
The accounting practices improve the image of the organizations because it helps the
organizations to make the effective relationship with the entire stakeholders such as general

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Running Head: ACCOUNTING 2
public, employees and customers. The same situation is also faced by the organization such as
Olympus Corporation and the accounting ethical breach has also reduced the image of the
organization between its entire stakeholders. For accomplishing the objectives of this
assignment, the selected article is related to the federal bureau of investigation (FBI) over the
accounting fraud at Olympus Corporation. On the other hand, this paper would also provide the
answer of the some questions, which would help to develop understandings about the ethical
behavior and related environment.
Answer 1:
In the context of the accounting ethical work practices, it could be stated that the
corporate ethical breaches were increased because of the less effective accounting practices. In
the past, the less effective accounting environment has also increased the distance between the
organizations and stakeholders (U.S. Attorney’s Office., 2013). But, the recent changes in the
accounting practices for example GAAP, which forces the business organization to follow the
ethical accounting practices, which helps the shareholders to know about the wealth of their
organization, is going in the right direction or not (PricewaterhouseCoopers LLP., 2013). On the
other hand, the regulatory environment is the main term, which is more conductive for the ethical
behavior. It is because that the current business environment provides the guidance and
assistance to the management people of the organizations by which they could be able to
improve the image of the organization and also provides the chances to the organization for
getting the profits from the market (Grover & Smith, 2012). Simultaneously, this kind of the
environment enhances the capabilities and capacities of the organization by which they could be
able to make the most effective and sustainable relationship with the entire stakeholders that also

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Running Head: ACCOUNTING 3
improve the fair distribution of profits and get the competitive advantages in the competitive
market without any problem.
The regulatory environment related to accounting and related practices helps the
organization to ensure the investment because it forces the organizations to implement the fair
accounting practice and disclose the entire data and information about the organization without
making any change (U.S. Attorney’s Office., 2013). Therefore, I could state that I personally
believe that the current business and regulatory environment are effective and conductive terms
this kind of environment restricts those business organizations, which want to hide the real
information about the financial position of the organizations.
Answer 2:
In the context of Olympus, it is a manufacturer of cameras and medical devices. It is
listed on Tokyo Stock ExChange. Olympus also holds several subsidiaries along with the
companies in different market of different countries and organization makes mergers and
acquisitions. From 1995 to 2004, Mr. Chan was appointed by two different banks. For one bank,
Chan worked as a relationship manager to Olympus and bank-2 got millions of dollars as a loan
for completing special purpose for Olympus (Grover & Smith, 2012). But, Olympus has not
disclosed this matter to shareholders, investors, and auditor because Tsuyoshi Kikukawa was
engaged with Chan in illegal activities.
In 2010, the entities related to Olympus have transferred millions of dollars in the
organization of Chan to purchase securities and bounds and he also transferred these assets to the
organization to improve the share value of the organization in the market. Chan has not disclosed
the information about the accounting ethical breach of organization and Tsuyoshi Kikukawa

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