Reporting Practices and Ethics Paper

780 Words Feb 3rd, 2014 4 Pages
The primary role of financial management is to plan for, acquire, and utilize funds (capital) to maximize the efficiency and value of the enterprise. Because of this role, financial management is known also as capital finance. The specific goals of financial management depend on the nature of the business, so we will postpone that discussion until later in the chapter. In larger organizations, financial management and accounting are separate functions, although the accounting function typically is carried out under the direction of the organization’s chief financial officer (CFO) and hence falls under the overall category of “finance.” Abstract (Moorely, 2013). The key elements of financial management include: Financial planning, Financial …show more content…
Professional organizations like the Association for Financial Professionals and the Association for Accountants and Financial Professionals in Business list competence as one of the key ethical standards finance professionals must uphold.
This need for an ethical foundation is perhaps more critical in the healthcare setting than in many other environments. Healthcare is an industry that affects the lives of every single person. Patients and family members desire high quality care, patient safety and the latest medical technology. But, ultimately, trust in the integrity of the caregiver is the foundation for their peace of mind.
An ethics of healthcare accounting practice would be incomplete without exhibition of integrity and objectivity in controller activity. For example, healthcare accounting of the human side of operations (i.e. patient accounts, payroll, shareholder dividends, etc.) involves expenses or earnings attributed to a party (Lewis, 2013). Integrity in accounting of finance having direct effect on other persons requires close attention to reliance and potential detriments that might be sustained. Equally of import to integrity and objectivity in healthcare accounting practice are ethical dilemmas posed by offer of gifts or deep pockets contributions in exchange for contracts by suppliers or other stakeholders.

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