“Ethics in Accounting”
Company’s today depend on their accounting department. It is very important that the company have Ethics in place from the President down to the janitor. It is a known fact that when you have a company that does not implement Ethics within the company and in every department, you will have issues that can lead to legal battles. I find that companies rely too much on their accounting department heads without really being a part of what they are doing. You hear on the news everyday about companies that have gone under because of embezzlement by the accounting person and also how the companies own CEO’s and President’s manipulate the numbers to benefit themselves, which of course hurt’s their stockholders, employees, …show more content…
I was employed by a small business we shall call Reynolds Resources. This was a company that had many investors. This company was a Collection Agency which handled the collections for many freight companies. The accounting person I shall call Liz who was the assistant to the CEO. She did not like being questioned by anyone or about anything when it came to the accounting department. She always provided the owners Tom and Mike with a financial statement every month. But one day one of our freight company accounts called and questioned the amount they received, which did not match with their financial records they had received from our sales person or their own records. This was a financial disaster. They uncovered that she was overpaying herself and the CEO, and also paying a makeshift company. I personally think that an audit person within the accounting department should have reconciled the company statements to their customers. Furthermore, the sales department should reconcile the accounts receivable to their customers as well. This at least would be another source of reconciliation of the customer’s accounts and also increase the collections for the company. This approach would also prevent serious damage to the companies Ethical Mission Statement. I realize that the audit function would create more overhead expensive; however financial differences from the customer to the company can cause serious Ethical Issues that can result of the company being
Company’s today depend on their accounting department. It is very important that the company have Ethics in place from the President down to the janitor. It is a known fact that when you have a company that does not implement Ethics within the company and in every department, you will have issues that can lead to legal battles. I find that companies rely too much on their accounting department heads without really being a part of what they are doing. You hear on the news everyday about companies that have gone under because of embezzlement by the accounting person and also how the companies own CEO’s and President’s manipulate the numbers to benefit themselves, which of course hurt’s their stockholders, employees, …show more content…
I was employed by a small business we shall call Reynolds Resources. This was a company that had many investors. This company was a Collection Agency which handled the collections for many freight companies. The accounting person I shall call Liz who was the assistant to the CEO. She did not like being questioned by anyone or about anything when it came to the accounting department. She always provided the owners Tom and Mike with a financial statement every month. But one day one of our freight company accounts called and questioned the amount they received, which did not match with their financial records they had received from our sales person or their own records. This was a financial disaster. They uncovered that she was overpaying herself and the CEO, and also paying a makeshift company. I personally think that an audit person within the accounting department should have reconciled the company statements to their customers. Furthermore, the sales department should reconcile the accounts receivable to their customers as well. This at least would be another source of reconciliation of the customer’s accounts and also increase the collections for the company. This approach would also prevent serious damage to the companies Ethical Mission Statement. I realize that the audit function would create more overhead expensive; however financial differences from the customer to the company can cause serious Ethical Issues that can result of the company being