Ethics in accounting and financial decision making
Ethics is the system of rules that governs the ordering of values. Ethics in accounting is another environmental factor affecting accounting, and business in general, is the growing concern over ethics. This concern has been a focus of the accounting scandals of the early 2000s. Enron, WorldCom, and Tyco (to name a few) each resulted from upper management’s falsifying financial reports (with the help of the company’s internal accountants) and external auditors not detecting those falsifications. Accounting rules and the resulting information are designed to capture and reflect the underlying performance of a company (University of Phoenix, 2008).
The purpose of this paper is to summarize the article, relate the article to the assigned readings for this week, discuss how the concepts of the article relate and/or apply to your current or former organization, make recommendations for improvement for your organization based on the article, explain the importance of ethics in accounting and financial decision making and Including a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making (University of Phoenix, 2008).
The article is about Ed Nusbaum CEO of Grant Thornton in how he took over a company that took a toll financially when 911 hit it was a tough time to take over. The first thing he did was to focus on the needs of the company and what the company was going to benefit from. He decided to restructure the company and sell the consulting practice and keep the accounting, audit, and tax business. He also expanded in doing special projects, tax works and internal control. This gave him an advantage over the other companies that kept their focus on the consulting practice. After SOX was implemented he expanded his business with quality partners and people from other companies that shut down. This generated revenues of over 300 million and now is over a billion. This...