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The paper discusses how some of America's most trusted institutions have been guilty of corruption, greed and mismanagement in recent years, due to lax regulatory standards and oversight. The paper focuses on the current credit crisis that was caused by banks' shady practices in the subprime mortgage market and creative accounting techniques that concealed losses from investors. The paper contends that auditors must overcome the pressure to fudge the balance sheet to turn a short-term profit and raise stock prices.
From the Paper:"Regarding the issue of the transparency of the American financial system, it has been said that "sunlight is the best disinfectant" (White 2007). In other words, openness in and of itself regarding financial statements by accountants makes for a more ethical and 'cleaner' business environment. Just as people on an individual level are more likely to refrain from unethical behavior if they are being watched (like a store employee being observed on an overhead camera), on a larger scale, if a company knows that it must make full and open disclosure of all of its transactions, it is less likely to engage in shady misrepresentations of its dealings and profits. The fewer regulatory loopholes, the better, in the public's estimation, but and investors must also have confidence in the ethics of the independent auditors entrusted to enforce government regulations. Just as laws are only as strong as the legislators and enforcers of the law, accounting principles are only as effective as the ethics of those who wield them in the name of their profession."
Sample of Sources Used:
- "The Future of the Accounting Profession" American Assembly Report. December 16, 2008. http://www.docstoc.com/docs/2598884/The-Future-of-the-Accounting-Profession
- "Transparency" Dictionary of Financial Terms. Lightbulb Press, Inc. December 16, 2008. http://financial-dictionary.thefreedictionary.com/transparency
- "Understanding Accounting Ethics." Chapter 1: Ethics and Professionalism in Accounting.PowerPoint. December 16, 2008. accountingmalpractice.com/0003/uae-01.ppt
- White, John. "The Promise of Transparency. Speech to U.S. Securities and Exchange Commission. 29th Annual Conference on Securities Regulation & Business Law. Dallas, Texas February 23, 2007. December 16, 2008. http://edgar.sec.gov/news/speech/2007/spch022307jww.htm
Cite this Persuasive Essay:
Integrity in Accounting (2010, November 07) Retrieved February 07, 2023, from https://www.academon.com/persuasive-essay/integrity-in-accounting-145399/
"Integrity in Accounting" 07 November 2010. Web. 07 February. 2023. <https://www.academon.com/persuasive-essay/integrity-in-accounting-145399/>