Forensic Accounting and Fraud
When I initially started college, ethics was a standard lecture topic. Behavior and
professionalism are two areas in which accountants are held to high standards. This
training has significantly shifted my perspective on accounting ethics. Before completing
this course, I had a layperson's perspective on ethics. I saw it as a mechanism to answer
questions about human morality by defining concrete categories for concepts like good,
evil, right, wrong, virtue, and vice. Therefore, the AICPA and the IMA have codified
codes of ethics that their respective members must abide by (Ishaque, 2020). This course
has taught me that issues of public trust are at the heart of accounting ethics and provide
the foundation for legal and regulatory responsibilities in the field.
Attempting to apply theoretical models to ethical questions is too much work.
Ethical decision-making requires even more clarity of values than decision-making
generally does. When we think of leaders, we think of people who act ethically. Most
citizens hope their leaders will provide an example of moral conduct (Fernandhytia &
Muslichah, 2020). Ethical decision assessment and implementation may vary based on the
context, as opposed to the basic principles and processes that may be easily automated for
financial, inventory, and production decisions. Some aspects of a model will work
wonderfully, while others will not. Since then, critical thought and judgment have been
required when applying predictive concepts to ethical dilemmas. When weighing the
benefits of applying theoretical models to ethical circumstances against the stress of doing
so, it is clear that doing so is worthwhile. These benefits include preserving public trust,
avoiding administrative probes and punishments, and stabilizing stock prices.
The course's most intriguing and helpful takeaway is the importance of ethical
behavior in accounting. This article suggests that accountants should give ethics
considerable consideration in order to prevent ethical issues by analyzing fraudulent cases
and determining the involvement of accountants in the fraud, whether by willing
participation in the crime or negligence (Shanks, 2020). Due to multiple corporate
scandals in the accounting world, which will call into question the reputation of the
Profession, I have learned via this course that Ethics has become an essential area of
concern in the accounting profession. Hence, accountants risk a wide range of accusations
when they act dishonestly. For example, in the ENRON case, the author Anderson had his
license to practice law revoked and his character smeared. The top brass of Enron was
unquestionably unethical. Why leaders might act unethically to the point of bringing down
a huge corporation can be challenging to fathom. The executives at Enron were motivated
by ethical egoism when making moral judgments. Financial statements of corporations
would be accurate, truthful, and reliable if only accountants followed the rules.
Reference
Fernandhytia, F., & Muslichah, M. (2020). The effect of internal control, individual
morality and ethical value on accounting fraud tendency. Media Ekonomi Dan
Manajemen, 35(1), 112-127.
http://jurnal.untagsmg.ac.id/index.php/fe/article/view/1343
Ishaque, M. (2020, January). Cognitive approach to understand the impact of conflict of
interests on accounting professionals’ decision-making behaviour. In Accounting
Forum (Vol. 44, No. 1, pp. 64-98). Routledge.
https://doi.org/10.1080/01559982.2019.1583303
Shanks, R. (2020). Is the IESBA Code of Ethics sufficient to help solve ethical dilemmas
facing the accounting profession?. London: Institute of Business Ethics.
https://www.ibe.org.uk/uploads/assets/deb95714-bf4d-4e9a-
a6444c2451c3b766/2020-Winning-Essay-Postgraduate.pdf
