This website uses cookies to ensure you have the best experience. Learn more

Ethical And Legal Obligations Essay

1694 words - 7 pages

Ethical and Legal Obligations

Ethical and legal obligations apply to all members of society. As one in society, the obligation to act in an ethical, law abiding manner on a daily basis is vital to the integrity of daily life. Many professions have their own code of ethics. Financial reporting is not exempt from such ethical and legal standards. One’s lively hood depends on decisions made in the business world. Business transactions are done daily and can impact one’s economic stability. Trust is placed in the hands of corporate America and an obligation of financial reporting to reveal a complete honest and legal picture of an entity’s accounting practices is important in attaining trust. This paper will discuss the obligations of legal and ethical standards of practice in the financial spectrum.
According to Marshall, McManus and Viele (2004), accounting is “the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment” (p.3). Decision makers look at balance sheets, income statements, changes in the owner’s equity and cash flow statement as documentation of the viability of an entity. Misrepresentation of the financial statements can place doubt of profitability in any company. The need for accountability and regulation of accounting practices is important in preserving trust in the business community.
Entities have ethical and legal obligations in financial reporting. To ensure these obligations are upheld, agencies have been developed to regulate standards of practice. These agencies or regulators are the “Financial Accounting Standards Board (FASB), the Securities and Exchange Commission (SEC), and the Public Company Accounting Oversight Board (PCAOB)” (Marshall et al., 2004).The FASB is the authoritative standard implementation body for the accounting profession according to Marshall et al. The mission of FASB is to “improve reporting, focus on traits that are important and reliable and on quality of comparison and consistency, to keep up to date with current trends to reflect modifications in methods used and economic changes, and to improve the common understanding of the purpose and content within financial report” (FASB, 2008). The FASB has an obligation to uphold ethical standards as well as to ensure rules and regulations are followed in the way of financial reporting. The FASB uses input from other agencies when developing or amending standards such as the SEC. Before the Great Crash of 1929, little was done to regulate the securities market (SEC, 2008). Two laws were created to help improve investor confidence: “Securities Act of 1933 and Securities Exchange Act of 1934” (SEC, 2008). According to SEC (2008) the purpose of these laws is to make sure companies display accurate...

Find Another Essay On Ethical And Legal Obligations

Ethical and Legal Obligations Essay

998 words - 4 pages The FASB (Financial Accounting Standards Board), the SEC (Security and Exchanges Commission), and PCAOB (Public Company Accounting Oversight Board) all work together to decide and determine which standards and concepts are necessary to resolve accounting problems and create a framework for companies to operate within. This allows investors, the government, and other organizations to have a standardized method of financial reporting that allows

Accounting and Ethical Obligations Essay

1553 words - 6 pages responsible for appointing seven full-time members to a FASB (Schneider et al). Found in 1973, the FASB has the primary responsibility for developing and issuing rules on accounting practice. This independent body issues Statements of Financial Accounting Standards (Marshall et al, 2004).Securities and Exchange Commission (SEC) is a US. Government agency that has the legal power to set and enforce accounting practices for entities whose securities are

Moral and Ethical Obligations to Animals

2304 words - 9 pages having issues comprehending what the NHRP is actually trying to achieve (Nonhumanrightsproject.org, 2014). At this point in time, the potential bodily rights of these nonhuman persons is hanging in the balance of the courts. To ensure we as a race are fulfilling our moral and ethical obligations we must minimise the suffering of any living being. Amending the guidelines and codes of practices to be a globally recognised set of strict regulations is

Ethical and Legal Preparations

583 words - 2 pages gain entry in order for it to be considered a burglary. Investigations must be ethical. An investigator must be professional and compliant when investigating these crimes. Ethical and Legal Preparations Ethics is a big part of investigating homicides and burglaries. Homicide is a horrible crime and should be treated as such. If an investigator is investigating a homicide that was committed by a homosexual lover

Legal and ethical essay

904 words - 4 pages HS540 The Legal and Ethical issues in Nursing Care In this essay the author will discuss both the legal and ethical issues concerned with gaining consent and the barriers that may affect gaining consent within a nursing environment. The author will also examine the physical, emotional and psychosocial issues around obtaining consent within this essay. What is consent? Originating for the Nuremberg trials 1947 consent is defined by the

Legal and Ethical Responsibilities

1426 words - 6 pages Legal and Ethical Responsibilities. Direct Discrimination :- something like putting in the job advertisement “women need not apply”. Indirect Discrimination :- saying there’s a height limit such as a 6’4”. This will limit who can apply for the job. Sex Discrimination Act 1975 The Sex Discrimination Act 1975 makes sex discrimination unlawful in employment, vocational training, education, the provision and sale of goods, facilities

The Moral and Legal Obligations of Battlefield Neutrality

1968 words - 8 pages The Moral and Legal Obligations of Battlefield Neutrality “If a body of enemy troops is repulsed, give to the wounded the same care as you would give your own men; treat them all the forbearance due to the one who is stricken…After the battle, restrain the fury of your troops; spare the vanquished…People should say of you: they fought courageously when they had to, but remained generous and humane throughout.” –General Guillaume Henri Dufour

What Moral and Ethical Obligations do Humans Have to Animals

1887 words - 8 pages conditions in which the animals live are cruel and abhorrent. This notion of cruelty invites debate surrounding the complex and multi-faceted issue of the moral and ethical obligations humans have in respect to other animals. The issue of battery hen farming is further confounded by economic, social, political, and food security issues. For these reasons the issue warrants further investigation. The main focus of the essay is to explore the moral

Ethical, Legal, And Regulatory Issues

1173 words - 5 pages B2B and B2C PAGE 1 B2C and B2B Ethical, Legal, and Regulatory IssuesEBUS 400 - E-BusinessUniversity of PhoenixB2C and B2B Ethical, Legal, and Regulatory IssuesWhen one deals with customers and clients it make sense to remember that honesty is the best policy. Not following this policy can be damaging in the long run. Businesses are not wise to put their integrity on the line by being swayed by oversight. Before considering that quick dollar

Legal, Ethical, and Regulatory Paper

1193 words - 5 pages IntroductionBusiness-to-consumer (B2C) and business-to-business (B2B) websites face legal, ethical, and regulatory concerns just as traditional brick-and-mortar establishments do. Although both B2C and B2B sites share similarities in web-based general ethical considerations and jurisdictional issues, each site has its own specific concerns due to the end-user relationship of the business versus consumer. Whether the end-user is a consumer or

International Legal and Ethical Issues

769 words - 3 pages Upon completion of the University of Phoenix simulation "Addressing International Legal and Ethical Issues," we as a team have outlined below several concerns that must be addressed prior to entering into any legally binding business contracts with international organizations.Addressing International Legal and Ethical Issues.Prior to entering into international contractual business agreements it is important to take into consideration the rules

Similar Essays

Ethical And Legal Obligations In Accounting

2104 words - 8 pages accounting principles as issued by the Federal Accounting Standards Board (FASB). The provider will also ensure that the company, if publicly traded, complies with requirements of the Securities and Exchange Commission (SEC) and the regulations of the Public Company Accounting Oversight Board (PCOAB). This paper briefly explains the principles of financial accounting and how the deviation from ethical and legal obligations led to greater government

Ethical And Legal Obligations Of Financial Reporting

1214 words - 5 pages decisions being made. Companies have an ethical and legal obligation to financial reporting. To ensure correct reporting is followed, several agencies are employed to regulate business. The Financial Accounting Standards Board, FASB, Securities and Exchange Commission, SEC and Public Company Accounting Oversight Board, PCAOB, are all agencies involved in promoting fair accounting principles for United States businesses. The most commonly known

Ethical And Legal Obligations In Accounting

982 words - 4 pages integrity of the securities markets (SEC, 2005). The SEC required public companies to disclose meaningful financial and other information to the public. This gives the public the knowledge to make informed financial decisions. The SEC takes legal action against companies and individuals who break securities laws. This includes insider trading, accounting fraud, and others.The Public Company Accounting Oversight Board (PCAOB) is a private sector, non

The Ethical And Legal Obligations Of Accounting Reporting

1089 words - 4 pages also adhere to the standers and legal obligations set forth by governmental and state agencies.The Financial Accounting Standards Board (FASB) is an independent, private, non-Governmental authority that will be utilized to support the establishment of accounting principles in the United States. The mission of the Financial Accounting Standards Board is to establish and improve standards of financial accounting and reporting for the guidance and