Accounting and Ethics

Accounting and Ethics

Christine Beaty

Kaplan University

CM225-15AU

Professor Huffman

December 8, 2009

Memo of Transmittal

Date: December 8, 2009

To: Upper Management

From: Christine Beaty

Subject: Memo of Transmittal for a Formal Report

Report authorized: November 30, 2009

By: Upper Management

It has come to the attention of the managerial and supervisory staff that issues in regards to ethical violations and theft of company petty cash has increased in the past few months. Research has been conducted to report on these issues globally and propose possible solutions to help control and prevent further violations and thefts.

Several reports made to management have included misrepresentation of financial data by specific individuals within the accounting department. Including the theft from the petty cash fund. The reports have also indicated that other employees have pressured accounting staff to misrepresent data such as time sheets, in order to receive undue compensation.

The recommendations listed in the report include a proactive approach. Using several methods including education, training, employee and prospective employee assessments, and quarterly auditing.

i

Accounting and Ethics

The profession of accounting allows many opportunities to either uphold the ethical code or violate it. Some of these acts are not only unethical but also criminal, with many consequences. It is up to the accountant and the company to make sure that ethical decisions are being made and upheld.

In the past decade the accounting profession has taken many hits to its reputation and ethical values. Though rocked with several scandals that made it to the main stream media it is important to realize that not all accountants conform to the new stereotype.

The lines of impartiality are sometimes slightly blurred as more traditional accounting firms are operating in a consulting position. The...