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Category: Business and Industry
Date Submitted: 01/16/2012 07:37 AM
Reporting Practices and Ethics
Tara Brigham
HCS/405 Healthcare Financial Accounting
University of Phoenix
Professor Marjorie Romano
10/17/2011
In the health care industry financial reporting practices and ethical standards are important to have a successful organization. Business and financial practices are changed to fit and to increase the organization’s value and patient confident. This paper will explain the importance of knowing and understanding financial and ethical practices in the health care industry to avoid illegal lawsuits and fraud as well as the implementation of the four elements of financial management.
In financial management there are four elements to be followed. The first element of financial managements is planning. Planning helps the financial manager to identify what steps must be taken to help achieve the organization’s objectives. The second step is controlling. Controlling helps the financial manager make sure that each area or department is following the plans that have been established by the organization. The third step is organizing. Organizing helps the financial manager decide how to use the organization’s resources to carry out the established plans. The four step of financial management would be decision making. A financial manager would be responsible for making decisions based upon the all the information gathered and make an informed decision.
Generally Accepted Accounting Principals are regulations and guidelines followed by accountants. Generally accepted accounting principals help accountants to ensure their practices are ethical and legal. The Financial Accounting Standards Board and the International Accounting Standards Board issue and govern the Generally Accepted Accounting Principals. The Generally Accepted Accounting Principals are in place to ensure equal and comparable standards around the world. Accountants use the Generally Accepted Accounting Principals to provide consistency and...