ethics

Ethics is defined as relating to or dealing with right or wrong conduct based on personal or professional standards. There are many ethical considerations within the public accounting industry based on personal and professional or accountant and client conflicting views.

The assigned scenario illustrates many ethical issues. At the risk of loosing the client the accountant may forgo their professional ethics and record the car as a business asset. This is assisting the client to break both company and taxation law. The company has mislead the bank by aiding the company to report false and thus misleading information about the financial strength of the business, and may be responsible for the bank granting a loan they otherwise would not have. The accountant’s unethical
actions could result in the business obtaining a loan they can’t afford to service. This could result in poor business profits or ultimately bankruptcy. This would have an impact on ...