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analyze the ethical issue

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  • Post Date 2018-11-07T11:00:28+00:00
  • Post Category New Samples

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analyze the ethical issue

Accounting Ethics Small Business Company

INSTRUCTIONS:

Case Study paper must discuss a ethics problem or scandal in a SMALL business company (do not choose big companies such as Walmart, home depo, Nissan, etc) and discuss how it was fixed or how should it be fixed if still currently investigated. Paper must focus on the following areas: -recognize the ethical implication in an issue -analyze the ethical issue -generate alternative issues -describe the method of handling the ethical issue -suggests a solution to resolve the ethical issue

CONTENT:
Accounting EthicsNameCourseInstructorDate Confidentiality and integrity are important aspects of accounting ethics, and a violation of accounting ethics might result in disciplinary action. Violation of ethics and cheating are concerns for today’s corporations especially with cheating being on the rise in American society (Shaw, 2011).Accounting boards in different states establish ethical standards to be followed, and this typically aims to maintain integrity standards among members. Besides adherence to ethics, businesses need to adhere to the generally accepted accounting principles (GAAP) in preparation of their books of accounts. This paper explores the ethical issues surrounding Chesapeake Energy. Even though, Chesapeake Energy undertook massive scale projects, the corporation operated in negative cash flow (DeMelle, 2011). Under these circumstances, there are limits on where the corporation can look for funds. The financial accounts of the company used creative accounting techniques to hide the scale of the company’s situation. In essence, this meant hiding huge losses in their accounts as well as misrepresenting fracking as a very profitable venture, while in fact the company was reporting losses. To further the highlight on ethical implications of the company’s financial dealings is a $ 1.1 Billion dollar borrowings by the CEO, Mr. McClendon to fund well drilling (DeMelle, 2011), and this was further complicated by dealings in a hedge fund ran by the CEO which also dealt with the same commodities as the company, and personal borrowing from a member of the company’s board. There is a conflict of interest and misrepresentation of financial informationThe ethical issue with the company is that there was a conflict of interest by the C.E.O’s actions of engag...

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