Reporting Practices and Ethics Paper

846 Words Aug 1st, 2012 4 Pages
Reporting Practices and Ethics Paper
Reporting Practices and Ethics Paper
Crystal C. Chaney
Axia University of Phoenix
Instructor: Sandra DiPetro HCS 405 Health Care Financial Accounting

There are many reasons as to why reporting practices and ethical standards are of the upmost importance in healthcare and in any business. The types of generally accepted accounting principles; to the corporate compliance, ethics, fraud, and abuse are all important factors to be considered in order to maintain a successful business. The four elements of financial management are often used to prevent fraud and embezzlement. I believe every business should adopt good business ethics and standards to maintain a
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According to the Financial Dictionary website generally accepted accounting principles (GAAP’s) are used by accountants to assist them and guide them in recording and reporting financial information. GAAP’s are issued by the Financial Accounting Standards Board and the International Accounting Standards Board that are followed by accountants in the United States to ensure that their practices are accurate, legal and ethical. Regularity, consistency, sincerity, permanence of methods, non-compensation, prudence, continuity, periodicity, full disclosure& materiality are just to name a few of the generally accepted accounting principles that ensures fair and accurate free from inconsistencies that are used by accountants when recording and reporting financial information.
Ethical standards are used by accountants to ensure that they are doing their job fairly and accurately. As an accountant they must maintain their independence, objectivity and their integrity. In order to prevent risks of lawsuits and legal action, embarrassment, embezzlement, business loss, loss of their job, loss of clients or potential clients, and the possibility of disbarment or being banned from working in the accounting field again. They could also spend time in prison for fraud. In which no individual would want to do. Being independently minded means that the

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