Ethical Behavior in Accounting Positions As you prepare for future employment pe

Question

Ethical Behavior in Accounting Positions

As you prepare for future employment perhaps as an accountant, after viewing the lecture, why do you feel there is a high public expectation for accountants to be ethical? This is just as important for a personal accountant as it is in the corporate world. Why is this? Companies in the last decade have disappointed many stockholders when it was uncovered that their accounting principles had been less than ethical. What are some of these companies, and what were their unethical accounting practices? no plagiarized answers please please type out answers

Explanation / Answer

ANSWER :- SATYAM COMPANY IN INDIA

Auditors of the company overstated assets and inflated profits to misled the investors to increase the share price of the company but when the fraud was revealed in the eyes of the public there was a sudden decline in the share price of the company and the investors of the company suffered a heavy loss in that situation.

KINGFISHER AIRLINES

since the incorporation of the compay in 2006 the company started incurring losses and with the strategy of acquiring loss making Air Decan in 2007 the situation become even more worse. The company was having large amount of bank debt and having inability to pay off the bank debt the officials of the company ran away without even making payments to their existing employees and banking companies.

NIRAV MODI SCAM:-

This scam was also committed in the banking sector of india when fraudulent issuance of letter of undertakings was detected in one of the famous bank of india - PUNJAB NATIONAL BANK . on investigation it was discovered that two of the bank officials had issued the fraudulent letter of undertakings without complying the necessary procedures as prescribed in the banking laws .The scam costs the banking sector at a high of $1.17 billion .

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