Illegal/deceptive accounting practices in today’s business organizations

Type :

Presentation

Pages :

3 pages

Format :

.doc

Published date :

06/10/2008

Category :

Business & market

Sub category :

Accounting

Oboulo.com selection criteria

$ 5.95 Add to cart

Summary :

Introduction
Financial Statements?Their Meaning and Purpose
Problems with the System
Conclusion

Abstract

Over the course of the last decade, the number of companies using legal, but deceptive accounting practices has increased dramatically. Sunbeam, WorldCom and Enron are among some of the most notable organizations to utilize accounting practices that were clearly unethical. While the public has called for these individuals and organizations to pay for their accounting transgressions, the reality of the situation is that it is difficult, if not impossible, for the government and its regulatory agencies-such as the Securities and Exchange Commission (SEC)-to effectively prosecute organizations for using unethical accounting practices. Unless the specific action taken by the organization in some way violates the law, there is little recourse for the government or the public.With the realization that accounting practices of the organization can be legal, but grossly unethical, there is a clear impetus to consider how these situations can be avoided. accounting concepts define the assumptions on which the financial statements of an organization are prepared. However, this does not mean that the need for judgments and estimations by preparers of accounts is eliminated or that choices in accounting measurement are restricted.