Research Effect of Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis

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 Introduction

Accounting is a practice that is put in place in an organization to ensure that resources of such an organization are managed in an integral manner; therefore, there is no room for any unethical practices. Unethical practices and behaviors in accounting not only ruin the reputation of such an organization, but it also discourages the owners and other stakeholders. Perhaps, there are various causes of unethical practices and behavior in accounting. This paper, therefore, observes various situations that may lead to unethical practices and behavior in accounting.

 Body

There are multiple reasons that can make individuals act unethically during the preparation of financial information.  These can be as quite simple as self-interest greed to complex situations such as corporate pressure and acts of ignorance.

An accountant may illegally acquire fund from an organization through the act of stealing and fraud.  This situation happens when an individual have poor accounting ethics, and will, therefore, satisfy his/her financial needs by embezzling an organization’s finances.   Pressure from powerful corporate individuals such as the management and other powerful personnel may make an otherwise morally upright accountant perform malicious acts in the fear of losing his/her job.  Acts of ignorance such as failing to follow accounting rules or even omission amount to unethical practice in accounting.

Many laws have been enacted to prevent corporate accounting malpractices, and the Sarbanes-Oxley Act of 2002 on Financial Statements is one such laws. The Sarbanes-Oxley Act is a key element in the business world since it sets remarkable standards for corporate accountability, and defines penalties for any act of wrong doing. It specifies how the cooperate executives and leaders must interact with the corporate auditors and also with each other. This act requi………………………….