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Ethical decision making case study - Research Paper Example

In the process, I noticed that the some customers have been overpaying the company and in return, the customers collect the refunds in cash. The dealing is being is being facilitated by the sales director who refuted to shed some light into the activity. My suspicions are about the customers’ motives where they overpay and then collect the money in cash. There is question of integrity. Will I be acting with the integrity if I do not question those motives? There is also the dilemma of objectivity since I am new to the company; I might face intimidation from directors who are members of the family (King 56). The other ethical dilemma is about confidentiality in terms of whether I should involve and discuss with a third party concerning the company’s practices. There is the issue of the exercising the right professional behavior where one must conform to the relevant regulations and laws, and refute to take part in or aid others in acting unethically or illegally. Additionally, must be careful with the actions I choose to take as they may or may not discredit my accountancy profession. Facts and researched information As an accountant, I am alert that a number of the business’s clienteles are over disbursing their accounts through the firm and receiving refunds in cash. In case the credit money is dispensed to the clients with respect to the reflective discounts, the customers, who could then play down their returns, could cover up these. Even though there are rather legitimate advantages

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to the company such as retaining of available customers, the sales director and I have sound reservations that the clients involved are false accounting. False accounting swindling happens when firm assets are inflated or charges are devalued to render a corporate seem financially sturdier than it actually is (Rayman 56). False accounting swindling encompasses a worker, client or an organization changing, destroying or disfiguring any account; otherwise exhibiting financial records from a person or an organization therefore, they do not mirror their true rate or the fiscal undertakings of that company (Rayman 57). Stakeholders The stakeholders include the accountant, sales director, a number of the company’s clienteles, tax authority as well as, to a slighter extent, other shareholders within the company. I f the account does not report the case, he or she could discredit his or her accountancy profession. His or her integrity could be questioned. The action is a violation of the accountancy code of ethics. Reporting the case to authority will denote that the accountant is an upright person. The sales director is aiding customers in committing fraud through false accounting. It is evident that he or she has never reported the case, and this means that he or she is deceitful, and is committing crime. The sales director lacks professionalism. The concerned clients are committing fraud through false accounting. The action is unethical and illegal. Tax authority has role to play of ensuring that individuals do not escape their tax duties. The rest of the stakeholders had an obligation to ensure that appropriate measures had been put in place to detect fraud activities and illegal activities. Now that the case has been brought to light, it would be unethical for directors not to take action against the sales
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(Name) (Instructors’ name) (Course) (Date) Ethical case study: Suspicion of false accounting Introduction A certified accountant in a commercial organization has a crucial role to perform in creating, encouraging and upholding an ethical ethnicity. A certified accountant in corporate has a duty to promote the legitimate objectives of her or his employing organization…
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