ROLE OF ETHICS AND JUDGEMENT IN THE PRODUCTION OF FINANACIAL REPORTS
Executive Summary
The ethical practices and professional judgement by the accountants, auditors, managers, executives and directors of any corporation play a key role and significant function in production of the financial reports. The key areas of judgement discussed in this essay are not the only judgement areas which help the auditors to do correct judgements but these are the most important ones which assist them in making accurate financial statements. The impact of judgement in making relevant financial reports cannot be over ruled as expert judgements lead to flawless financial reports. The case studies explained in the critical essay pinpoints the unethical practices of certain corporations which led to their downfall and also highlights the poor judgement on their behalf which led to mutilated financial reporting and resulting loss of trust of the shareholders and stakeholders of the concerned organization.
Role of Ethics in Financial Reporting and Impact on Reported Financial Position and Performance of an Organization
Write my papers (n.d.) explained that the financial reports can be termed as a method of showing the financial details of a company in a simplified and an orderly manner. It is not only important for the organisation itself but it is also very important for all the stakeholders who have a very keen interest in the report and who utilises it in the manner suited to them. There is a dire need of having high ethical values in financial reporting because as it is the matter of money, it usually misleads the experts in the field towards the wrong practices. In the absence of such standards, ethical reporting will be far from reality.
Burch (n.d.) elucidates that all the corporate companies working at the stock exchanges are required to give financial reports to the stockholders on an annual basis in most of the cases. Such reports must show all the dealings...