Forensic Accounting and Fraud
When I initially started college, ethics was a standard lecture topic. Behaviour 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, 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 behaviour in
accounting. This article suggests that accountants should give ethics considerable consideration in
order to prevent ethical issues by analysing 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
