Jack in the Box Unethical Accounting Business The article I have chosen to summarize highlights the accounting practices of a San Diego--based company, Jack in the Box, Inc. (NYSE: JBX). In addition to summarizing the article, I will discuss how the concepts of the article relate to my organization The Platinum Company Inc., including, making recommendations for improvement for my organization based on the article. Lastly, explain the importance of ethics in accounting and financial decision making.
Although Jack in the Box remained strong with widely varied menu items and unique marketing strategies through the E. coli disaster of 1993, the current economic slump in the fast food industry highlights serious controversy over the
…show more content…
is responsible for the preparation, integrity, and fair presentation of its published financial statements. For my organization, The Platinum Company, the corporation maintains a system of internal control over financial reporting which is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation of reliable published financial statements. The financial statements must follow the GAAP guidelines in preparing reports and recording transactions. To insure proper accounting Platinum utilizes their own internal audits and employs a well-known public accounting firm Deloitte & Touche, LLP. Like Jack in the Box, Platinum's Annual Report 2002, under other (loss) income, reports losses due to financial bankruptcy in one of their investment companies and reports financial gains because of investments in unconsolidated affiliates. To make recommendations in improving the companies financial reporting would be difficult at best. Platinum extremely strict and assertive in their internal audits to ensure proper procedures are followed. The companies’ internal accountants work together with Deloitte & Touche's accountants to preserve proper ethical conduct and moral principals are monitored.
Business ethics are proper ethical conduct that implies that you not only consider what is in your best interest, but also what is in the best interest of others. Moral principles are what guide the conduct of individuals. For example,