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Essay on Business Ethics - 1239 Words

Business Ethics Corporate fraud has grabbed national headlines repeatedly in the last year. Although, Enron and World Com are two of the highest profile cases of corporate scam, ethics in the business world are generally deplorable. One of the most morally reprehensible cases to hit the newspapers in the past several years is that of Robert R. Courtney. His sense of business and personal ethics reflects moral depravity at its darkest moment. What he did was evil on both a business and certainly on a personal level. As a pharmacist, he was entrusted by patients, oncologists, and major drug companies, to fill prescriptions for cancer patients. He defied and denied this trust. Apparently he owed the IRS $600,000, and ironically†¦show more content†¦Courtney violated this theory. What he did in essence was to cruelly twist the theory of utilitarianism by delivering the greatest harm to the most people he could. He had it turned around and was apparently not concerned with how his gre edy, short-sighted , and immoral behavior was affecting others. Although this theory gives latitude to individual definitions of â€Å"good†, Courtney ‘s manipulation of good and evil, right and wrong could not be justified on any level. Immanuel Kant posed a different framework from which ethics evolve. He supposed that actions spring from a person’s sense of duty. Is it possible Robert Courtney felt his duty to the IRS and to his local church was more important than his professional duty to dying cancer patients? Courtney’s duty as pharmacist should have prevailed and kept him from doing what he did. Both teleological and deontological theories emphasize dignity and respect. Robert Courtney violated each of these theories. In the beginning, regardless of his actions being accidental or deliberate, the pharmacist must have contemplated his own sensibilities and moral convictions. Supposing that Robert R. Courtney had never developed any moral character, rules governing pharmacists’ behavior prohibit what he did. It was his duty to take these rules into account and abide by them, when in fact Courtney did the exact opposite. He defied personal and professionalShow MoreRelatedBusiness Ethi cs : Ethics And Business943 Words   |  4 Pagesdiscussions in Business is Ethics. Some people believe that the decisions businesses make in interest of the business has no place in ethics and that they are essentially amoral. These businesses believe that their main objective is to simply make a profit and that it does not affect the success of the business. Whereas some businesses believe that they have to take ethics into consideration, in order for their business to be a success. Richard T. De George (1999) states that ethics and business do notRead MoreThe Ethics Of Business Ethics1471 Words   |  6 PagesReview Nowadays, the concern for business ethics is growing rapidly in the business community around the world. Business ethics are focused on the judgment of decisions taken by managers and their behaviors. The issue regarding these judgments is the norms and cultures that shape these judgments. Business ethics are concerned about the issue, how will the issue be solved and how will it move ahead along the transition analysis as well (Carroll, 2014). Business ethics can be addressed at differentRead MoreEthics And Ethics Of Business Ethics1304 Words   |  6 PagesBusiness Ethics Varun Shah University of Texas at Dallas Business Ethics Morals are a crucial part of life. Without having principles one would never be able to distinguish the right from wrong and good from evil. Just as it applies to life in general, ethics is an integral part of doing business as well. When we here the term Business Ethics in our work place, we usually do not take it seriously and brush it off saying ‘it’s just a simple set of basic rules like not cheating and so on’. ThisRead MoreThe Ethics Of Business Ethics Essay1097 Words   |  5 PagesResource A discusses how ethics is crucial in business. There are three key ideas used to understand this. Firstly, making ethically wrong decisions tend to cause more upset than other general mistakes as purposeful unethical actions are not as easily forgiven or forgotten. Secondly, ethics provides businesses with a broader understanding of everything to do with their business. Business ethics is effectively just business it its larger human context. Thirdly, being unethical ca n tarnish the publicRead MoreThe Ethics Of Business Ethics1064 Words   |  5 Pages　　　　Business Ethics Ethics can be viewed as the rules and values that determine goals and actions people should follow when dealing with other human beings. However, business ethics can be defined as moral principles of a business. It examines moral or ethical problems that arise in a business environment. Generally, it has both normative and descriptive dimensions. Organization practice and career specialization are regarded as normative whereas academics attempting to understand business behaviourRead MoreThe Ethics Of Business Ethics757 Words   |  4 Pagesdeciding what to do in certain situations, ethics is what guides an individual to act in a way that is good, or right. Those involved in business settings apply ethics to business situations, known as business ethics. It is expected of businesses, small and large, to follow business ethics. There is a particular framework businesses are to follow. However, the reoccurring news headlines of poor business ethics prove differently. Poor busine ss ethics include bribery, corporate accounting scandalsRead MoreEthics And Ethics Of Business Ethics1200 Words   |  5 PagesEthics meaning in simple way for average person is what is right from wrong. According to Chris MacDonald (2010)† Ethics† can be defined as the critical, structured examinations of how we should behave - in particular, how we should constrain the pursuit of self-interest when our actions affect others. â€Å"Business ethics is the applied ethics discipline that address the moral features of commercial activity (Business ethics, 2008).Working in ethical way in business has a lot of benefits which can attractRead MoreBusiness Ethics Essay944 Words   |  4 PagesUnderstanding Business Ethics Unit 37: National Diploma Assignment brief TASK 1: Scenario: Business ethics - a study of a selected company With growing interest among consumers regarding the business ethics of the businesses brands that consumers buy, Westminster council wants to conduct an independent review of some of the organisations that sell their goods and services in the borough. You have been asked to select one of the following brands and conduct research into their business ethics. Read MoreThe Ethics Of The Business Ethics1431 Words   |  6 Pages BUSINESS ETHICS INTRODUCTION:- Presentation Ethics are exceptionally regular and essential good esteem that helps us to take the right choice where we think that it hard to pick between our own advantages and the correct thing to do. We are going to talk about three sections of morals Behavioral morals, Bounded ethicality and last one is irreconcilable situation. As from the names of these parts of morals, its verging on clarifying the significance of it. It clarifies why great individualsRead MoreThe Ethics Of Business Ethics Essay2711 Words   |  11 PagesBusiness Ethics Business ethics is a type of professional ethics or applied ethics which examines moral problems and ethical principles that come up in a corporate environment. It is applied to every aspect of conducting business. According to Milton Friedman, a company has the responsibility to generate as much revenue as it can while still conforming to the basic rules that society has set. These rules include the ones embodied in customs as well as in law. Similarly, Peter Drucker stated that

The Modern Era Of American History - 1555 Words

Out with the Old and in with the New The 1920s stand as a monumental decade in American history with radical shifts in the values and practices of many Americans due to the revelations in science and the birth of the Modernist movement that spurred societal reformation. However, these progressive ideals and values were met with fierce opposition in many regards that created a polarity in America between proponents of this new religion and advocates for the traditional old religion of Christianity and conservative principles. The 1920s served to utterly alter the values of American society with the genesis of unprecedented scientific knowledge and an end to World War I, both of which served to create a sharp divide between the new religion of Americans who sought to modernize culture and education and the old religion of Americans who advocated for a return to the archaic forms of living. With an end to the First World War, Americans at long last were able to concern themselves with personal matters, needs, and desires, as opposed to those of the country’s in wartime t. This development of a high value placed on self-treatment resulted in the rise of a consumer culture that entailed the rise of industry and the manufacture of goods. Consumerism and industry go hand-in-hand at the time, with consumer products becoming â€Å"symbols and proofs of excellence† (Doc. 1). The desire for new products and purchasing goods initiates the rise of a new religion in America, replacingShow MoreRelatedThe Japanese American National Museum1354 Words   |  6 Pages The Japanese American National Museum is located in the heart of Little Tokyo, surrounded by many ramen diners, mini malls, and japanese boutiques. The museum opens up chronologically, starting off by displaying the migration of the Japanese with their aspirations to start a new life in America. 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Throughout American history, comics have served as both an influence and a reflection of the time period. As America grew, changed, and experienced major historical events, society a nd the ideas within changed along with it. Many comic historians

Auditing and Assurance Services Audit Inherent Risk Model

Question: Describe about the Auditing and Assurance Services for Audit Inherent Risk Model. Answer: Meaning of Inherent risk: Inherent Risk is the risk of a material misstatement in the financial statements arising due to error or omission as a result of factors other than the failure of controls (factors that may cause a misstatement due to absence or lapse of controls are considered separately in the assessment of control risk). Factors that would have contributed to increased inherent risk assessment at the financial reporting level: Competence and Integrity of management: At financial reporting level, many disclosures in financial statements, policies, trade practices etc. Are based on management judgement and their approach towards future economic growth. Say few estimates are to made to disclose true picture of financials i.e provision for employee benefits, provision for expenses etc Assessing management integrity is no easy task but at financial reporting level, inherent risk of audit increases if competence and integrity of management is found to be low by the auditor. As mentioned in the question, due to rapid industry growth in the industry, significant managerial experience in the industry was limited. Thus, due to limited experience management may not get proper solutions for complex situations arising in the business or it may not be able to estimate future trends and technologies of which management of competitor entity are aware of. Discrepancies in accounting records: It may happen that the accounting records are maintained properly in an entity. Say for example, there are many errors and omissions in the accounting records. Due to this factor, financial position as at reporting date may be mislead to an large extent Discrepancy in accounting records affects can effect any component of financial statement i.e. revenue, expenditure of any other balance sheet or profit and loss item. Thus, if any discrepancies are found in accounting records inherent risk of audit will be assessed as high. In case of inexperienced accounting personnel, it may happen that accountants are not clear at entry level only. They may get confused in debit and credit entries. Thus, it may cost discrepancies in accounting records. The trail balance of the company may not tally, account balances may not represent actual account balances, etc. which increases inherent risk involved in audit at financial reporting level. Unusual relationship between auditor and management: An audit involves reporting on financial statements of an entity whether they are true and fair independently. If there is any indication of unusual relationship between auditor and management i.e. high volume of transactions between both, old friendship or relationship between auditor and management. Etc may affect the independence of auditor and the auditor may not report the actual picture of financial statements and he may end up reporting in favour of the entity. Thus, this factor increases inherent risk of audit. The indicators of unusual relationships may be recurring cash transactions between auditor and the company, auditor and company are related parties, etc. Unusual transactions with outside or significant related party transactions: Related parties are parties which are mainly controlled by common controlling authority. It may happen that, for personal benefits directors may transfer profits of one entity to other. Or it may happen that they sell products of one company to other related party at cheaper rates to make other entity profitable. Thus, in case if at the beginning of audit, the auditor finds large volume of transactions with related party or any unusual transaction with related party, he may classify inherent risk of audit as high. There may be some transactions with external parties identified at the start of audit or during the course of audit which are unusual in nature. For example, a transaction not related to business, high cash value transaction or other transaction which the auditor may find unusual increase the inherent risk of audit. These transactions may also impact financial position of an entity. Thus, occurrence of such unusual transactions increases the inherent risk of audit. Further, if transactions with related parties are high in volume also affect the inherent risk involved in audit. As the entity has interest in its related party, the transactions may not be arms length price or it may happen that funds are transferred from one entity to other and share holders funds are used for related party of the entity. Such kind of transactions increase the inherent risk involved in a audit at financial statement level. Financial results that seem too good to be true: In some cases, financial results of a company seem too good i.e financial position of the company seems too good as compared to industry trends and companys internal financial structure and capability of the management. For example, average profit in industry is 10% but the financial of the entity are showing profit of 40 %. This kind of situations leads to more complex judgements by the auditor. Thus, if financial results seem too good to be true, the inherent risk in audit will increase. The company may display wrong picture in financials to attract shareholders, investors and customers towards services. It may happen that, to attract large investments, profit of the company is disclosed doubled or the liquid ratio is disclosed favourable to the company. Though, the auditor through his professional scepticism may identify that such financials are not in line with current financial position of the company of industry. Thus, he may have to perform additional audit procedures to ensure the financial results disclosed by the company are true and fair. Factors which would have identified at strategic planning level: Competency and Integrity of management: Management can plan and divide work in such a manner that expert in particular work in allotted to the work matching with his expertise. Discrepancies in accounting records: Management can set up controls for accounting at strategic planning level. Solution: Inherent risk factors that would have contributed to increased inherent risk assessment at the account balance level: Account represents an asset that can be easily stolen: There may be a case where assets of the entity are kept or maintained in such a way that they can be easily stolen. For example, company keeps few of its machines outside the factory due to storage issues in factory and no security is there to keep watch on that machines which are kept outside the factory. Now there may be a case where this assets are stolen and the auditor even the company is not aware of the case. In such situations, it may happen that auditor reports gross block of assets as 1,00,000$ and only assets worth 97,000$ are available physically. This increases the inherent audit risk at account balance level. Fixed assets cover a major portion of entitys financials. If fixed assets are not disclosed properly in the financials, there is high risk of misrepresentation of the companys financial position. Thus account balances represent assets that can be easily stolen, it is high risk item for an auditor and thus it increases inherent audit risk at financial statement level. Account balance made up of complex transactions: If any account has complex entries and account balance is not clear or the nature of transactions in that account is not clear to auditor the auditor has to perform additional procedures to comment on true and fair view of that account. For example, an account used for accounting of taxes and proper narration is not given to entries in that account, it may happen that auditor finds that account very complex and perform additional procedures to get comfort on the figures of that account. Further, it is also possible that technical knowledge of accountant is less and entries of expenses are routed through the ledger of tax. Such cases increase the inherent audit risk at account balance level. Account balance requires a high level of estimation to value: There are some transactions in which proper estimation by management is required to complete the accounts so that false picture financial position of the entity is not reported. Examples of such kind of estimations are provisions for expenses accrued but not due, provision for gratuity, contingent liability, etc. If the company is incurring high volume of expenditure at the year end of which exact payment to be made for that expenditure in not know by the management, management estimates become more crucial in depicting the financial picture and thus it increases the inherent risk of audit. Other Factors: Account balance subject to adjustments that are not in the ordinary processing routine: Financials are finalised after making some adjustments in accounts for presentation of financial statements to comply with reporting standards. If the accounts are too complex and many adjustments are required in that for proper disclosure, probability of error increases and inherent risk of audit also increases. Account balances are composed of high value of non routine transactions: In such cases it becomes difficult for auditor to easily rely on account balances as it consists of unusual transactions which are not in course of business. Auditor has to perform additional audit procedures to insure that balance in such kind of accounts is true and fair. Solution Comment on going concern of business enterprise: Going concern if affected by the following: Stability of business: If there is any indication of any future or current event which may impact operations of business substantially going concern concept is affected.. For example, if any new product is launched in market which is better than the companys product and company is not able to upgrade its product due to limitation of resources, it may happen that customers start buying new product in market and demand of companys product decreases drastically. In case of Nokia, the company was not able to upgrade with technology and it continued with old technology and ended up being sold to Microsoft. There are many other factors which affect the going concern assumption of business entity such as continuous losses to the company, internal work environment of the company shows possibility of lock out, strike of worker etc. In case of One Tel(Given company in the question) going concern is assessed as low due to following factors: Australias telecommunication sector is already well grown and many telecom companies are operating in the market with big investments and well skilled man force. Further, Telstra is holding major customer share in market. Along with Telstra there are many players in the market in this sector. In such kind of markets and such kind of business scales it becomes very difficult for new enterprises like Telstra to operate in market and sustain growth continuously. Considering the mobile operators in Australia, 42% of the population is already using mobile phones. In such case it becomes difficult to attract new customers as many of the customers are already using the service and One Tel has to launch a very attractive productservice to attract the buyers. Due to the rapid growth of the industry described in the previous section significant managerial experience in the industry was limited. This is most important factor for an enterprise to continue in a competitive market. It may happen that, management fails to attract customers with its products as management of competitor is more efficient than one tel. Decision making may fail due to lack of experience. In complex situations, management decisions play crucial role, and if management is not competent enough to cope with situation, the company may suffer heavy losses. One Tel is operating in a competitive business environment where already many businesses are already established one tel will start establishing its business from this point. Considering the market share of competition and experience of the competitors it is tough job for one tel to establish a customer base and sustain in such a competitive market and achieve growth along with earning profits. References: Accounting-Simplified.com, S 2014, Audit Risk Model: Inherent Risk, Control Risk Detection Risk, viewed 19 September 2016, https://accounting-simplified.com/audit/risk-assessment/audit-risk.html Investopidea, S 2015, Examples of inherent risk, viewed 19 September 2016, https://www.investopedia.com/ask/answers/041615/what-are-some-examples-inherent-risk.asp The InformationOverload.com, S 2015, Inherent Risk in Audit, viewed 19 September 2016, https://theinformationoverload.com/what-is-inherent-risk/ Wikipedia, S 2016, Audit Risk, viewed 19 September 2016, https://en.wikipedia.org/wiki/Audit_risk