The recent past has resulted in the establishment of
significant development projects in the global regime. In the wake of these
developments, various attributes of development have been witnessed in the
establishment of business incentives thereby leading to enhanced performance.
The attributes of globalization has been of immense influence in the
development of the national economies because they have been characterized by
the consideration of influencing the performance of the economy. Over the
period, the attributes of regional trade was hindered by the enactment of
regional boundaries a, however, the establishment of globalization has ensured
that trade can be conducted across the regional borders because this aspect
leads to the enhancement of development. With regard to the establishment of
global businesses, the aspects of ethical standards have been significantly
compromised because of the diffusion of cultures. Increased participation of
the members from different locations has the aspect of reducing the observation
of ethical practices and this leads to the consideration.
The aspect of business ethics can be highlighted as a form
of professional ethics that has the function of examining ethical principles
the moral problems experienced in the business environment. The attributes of
ethical conducts and provisions in business are extremely ideal and is common
to all the aspects of the businesses and other corporate organizations. In
reality, the consideration of business ethics consideration can be divided into
two categories that include normative and descriptive dimensions. Normally, the
establishments and performance of business incentives are based on the
consideration of other factors rather than the establishment of profitability.
In this attribute, profitability is a monetary method of demonstrating and
measuring the performance of the business incentives. However, another leading
aspect of measuring the performance of the incentive is to the consideration of
using other channels like the establishments of sustainability and satisfaction
of moral obligations. In reality, every organization is faced with the moral
obligation of ensuring that moral responsibility is significantly enhanced and
this leads to the realization of ethical standards. According to the sentiments
raised by Adam smith, it is vital for the leading corporations and governments
to initiate conduction of measures that enhance realization of the existing
norms in the community because failure to establish the realization of these norms
results in the consideration of unethical practices. Ethics in business is
beneficial because it regulates prevalence of the behaviors in the corporate
environment. In the wake of the rising realities, it is ideally possible for
business in the economy to be ethical in the undertakings because the systems
of the market adopted are some of the ideal strategies adopted to enhance
realization of ethical practices. The establishment of the business incentives
is based on the consideration of identifying the needs and wants of the
consumers and also meeting the increasing needs of the suppliers. In order to
achieve this, the organization must engage in the establishment of ethical
practices as this will influence the consideration of the growth objective. On
the other hand, growth and expansion of the business incentive is based on the
provision of busies incentive to the beneficiaries and ideal effects to the
society. The attributes of social responsibility has been highlighted as the
modern aspect of identifying the ethical standards of the business incentives
and this consideration has been used to force other corporation out of the
market. The attribute of social responsibility is largely determined by the
satisfaction of the society and it leads to the increase in organizational
acceptance by the community thereby raising attributes of support to the vision
of the organization.
Practical
difficulties in attaining business ethics in the modern economy
The aspects of development received in the present economy
have rendered realization of ethical practices significantly hard because the
practices have resulted in the establishment of factors that disobey the morals
of the organizations and the customers. Some of the leading attributes that has
enhanced reduction in the consideration of ethical practices involves the
consideration of the quest for financial gain. Even though most organization
have that attribute of working towards the realization of profits, the profit
incentive has led some managers and executives towards the attribute of
engaging in unethical conducts and this is detrimental for the performance and
survival of the businesses. This consideration has resulted in the loss of
funds and significant alteration of prices of various goods and services. In
this regard, the attribute of behavior leading to the alteration of the
organizational policies is the resulting attribute from the deviation in the
norms. The aspect of unlawful generation of profits I the organization is a
vice that results in realization of lose and the organization must identify the
ideal measure of enhancing corrective measures to ensure that the losses
occurring due to the aspect of vice domination is eliminated.
Analysis of various organizations has reveled that various
managers have been compelled into committing unethical behaviors due to the
prevalence of loses in the organization. The motive of the organization as
stipulated in the mission statement is to realize profits. In this regard,
continued realization of losses is an incentive that may compel the managers
and other executives to change their plans and deviate from the established
organizational regulations because of the increasing pressure form the
shareholders. The shareholders are always of on the verge of demanding for an
increase in the value of their investments and this provides an incentive for
the manager’s to continue working in the organization. Therefore, failure to
realize the expected profit is detrimental because it results in demotions of
the managers and this aspect can propel them to engage in organizational vices
with the aim of raising money for the organization.
Greed of the accountants and auditors is has also been
stated by significant number of organizations as one of the leading causes
vices in the society. In reality, the accountants are charged with the
responsibility of ensuing that financial issues in the organization are well
initiated and this leads to the consideration of adopting the transparency
incentive of the organization. Certainly, the mission statement of the
organization and the objectives highlights ethical practices that must be
conducted by all the employees in the organization and these are stated in the
code of conduct. In view of this, embezzling of funds by presenting false
financial information is an organizational vice. Ethical accounting conduct
requires the establishment of accurate financial standards that are used to
reflect the true financial position of the firm. Over the period, the
presentation of false financial statements has been on the rise and it has
jeopardized accounting position because it relents challenges the moral
depiction of the organization.
Role of
forensic accountants and auditors
Over the
period, the consideration of establishing accuracy in the illustration of the
financial records is extremely crucial because this has the effect reflection
on the profitability of the organization. Certainly, the aspects of
profitability are extremely crucial for the organization and the depictions
from the financial statements should reflect on the aspects of true financial
position of the firm. It is the duty of the accountants to prepare credible
financial statements that depicts the true financial performance and status of
the firm because this will reflect the actual value of the shareholder
benefits. However, the recent past has witnessed emergence of ideal violations
of the ethical practices in the accounting profession and this is characterized
the prospects of accountants engaging in the practices that aims at satisfying
their selfish interests. The conduct of most accountants and auditors has
resulted in the violation of the business code of ethics and this has prompted
the establishment of the services of forensic accountants.
Forensic
accounting is the specialist practice that is concerned with the practice in
the area of accountancy and it involves the aspect of describing the financial engagements
with the aim of correcting the disparities in the areas of financial departments.
The development and usage of forensic accountants is based on the attribute of
correcting the disparities that arise due to the concentration of the vices in
the organization. Over the period, analytical results have pointed out that
cases of financial adversities are on the rise and this calls for the
enhancement of the corrective measures and one ideal corrective measure for the
organization is to employ the services of the forensic accountants because they
have the capacity to discern and ascertain the attributes of financial disparities
in the organization. Certainly, the establishment of the forensic accountant
services is to check and counter the financial records prepared by the
accountants with the aim of highlighting financial defaults in the
organization. Therefore, it is crucial to note that the role of forensic
accountants and auditors is to highlight the cases of financial discrepancies
in the organization. Certainly, this aspect is considered as one of the
organizations ethical standards because the organizational must disclose
accurate financial statement to the general public.
Even thought
he financial accountants have the roles of ascertaining the attributes of
financial negligence, these professionals are also accorded other duties in the
organization that may range from ensuring conduction of ethical accounting
practices to the aspect of detecting bankruptcy, insolvency and reorganization.
The other roles of the forensic accountants and auditors in the organization
include the establishment of the ethical practices in the organization and this
includes the conduction of different practice like;
- The aspect of ascertaining economic damages calculations and also establishing the nature of loss. In this category, losses can be classified as tort or just the breach of contract.
- The cases of post acquisition disputes like the earn mounts and breach of contracts initiated by warranties.
- Insolvency, bankruptcy and reorganization.
- Business violation
- Security frauds in the various organization and finally, computer forensic.
Additional
provisions have highlighted that forensic accountant specialize in the
rectification of professional negligence cases where they address the work of
the other professionals. The aspects of reducing ethical practice in both
international and local organizations have resulted in the establishment of
this centre. The consideration of the operations of the business organizations
and the nature of their establishment in the modern economy should be in
accordance with the ethical practices depicted in the mission and objectives.
Another incentive that leads to the consideration to the ethical practices is
the aspect of enhancing significant influence on the societies. In reality,
organizations and corporations have an obligation of ensuring g that the
morals, culture and ethics of the society are significantly enhanced because
failure to do this will symbolize failure of the organization. Forensic
accountants are usually concerned with the attribute of providing personal
opinions about the work done or the reports compiled in the organization.
Certainly, the duties of these professional officers is to answer ideal
questions bout the issues that raise ethical concerns in the organizations and
therefore, their role is to enhance the conduction of ethical practices in the
organization. Additionally, it is extremely to note that the field of forensic
accounting is a broad profession and is therefore classified into various
attributes with the basis of ascertaining the various roles to the
organization. Some forensic accountants specialize in the forensic analytics
which is concerned with electronic data and are therefore capable of ascertain
the magnitude of the financial fraud. The considerations of these incentives
have the sole purpose of enhancing the observation of ethical practices in the
business. With regard to this, forensic analytics is concerned with the
attributes of data collection, data preparation, data analysis and data
reporting. Some of the most ideal aspects for applicability of this incentive
are the conduction f analysis on the employee purchasing card and
representation of the imp rest system in the organization.
Over
the period, the establishment of the performance of business has always
considered the contribution of the internal auditors and further comparison
done through the consolidation of the services of forensic accountants that are
hired from the external sources. This incentive is ideal because it enhances
the establishment of ideal accuracy of the financial statements.
Pressure of reporting false financial
statements by the accountants
The
attribute of preparing accurate financial statements that depict the true
status of the firm is the absolute consideration and the role of the
accountant’s in the organization. However, there are some situations in the
history of the firm that the accountants are faced with the pressure of
reporting wrong financial documents to the authorities and managers. Even
though this is unethical, the managers sometimes recommend that false information
about the financial statement of the organization be prepared to enable the
organization secure loans from the financial institutions and this
consideration s not beneficial because it leads to the conduction of unethical
problems. This consideration has adverse effects because it enhances
realization of the fact that the conduction of unethical practices inn the
organization may result in the decrease of organizational earnings. Based on
this analysis, the unethical environment is the bank loan acquisition and the
attribute of this reality leads to the consideration of engaging in unethical
behavior. Given the scope of this incentive, the auditor or the accountant may
be under the pressure to commit the act even though they have the realization
of this activity being unethical. In this regard, accounting culture and norms
are in complete controversy with regard to the consideration of pressure and
unethical behaviors.
Over
the period, various organizations have devised measure of alleviating the
expense of paying taxes at the end of the trading period. The provision of the
basis of the organizational establishment has the set of rules that states that
taxation rules must be observed and this is listed as the ethical code of
conduct for the member s of the organization. However, the aspect of
alleviating taxation has become the leading incentive for some of the
organizations because they instruct their auditors to provide false information
in the financial statements with the aim of reducing the amount of taxations.
The ethical standards of accounting and organizational management have special
instructions with regard to the consideration of disclosing correct information
during the representation of the financial records. Taxation has always been
viewed as an unnecessary expense by other business managers and to that effect,
they have initiated measures of ensuring that the organization does not provide
the payment of the full taxation. This incentive is done through the attribute
of instructing the auditors and the accountants to provide wrong information
during the preparation of the financial statements that represents the
organizations. This preparation is considered by the attribute of under
representing the organization through the attribute of failure to disclose some
of the leading asserts in the organization. Even though this practice can be
considered to be unethical in the accounting profession, the accountants
sometime engage in the conduction of this incentive because of the pressure
accorded to them by the management. In this regard, it is extremely crucial for
the managers various business organizations to enact the practice of ethical
practices in the organization. These ethical practices inclusive attributes of
full discloser in the financial statements.
