Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Ethics in Accounting and Financial Decision Making
Financial Decision-making is one of the most important things in the business world. In
today diverse world, ethics in accounting and financial decision- making is a process that
many organizations have trouble dealing with. Many organizations put emphasis on ethics
and the financial decision making process within the organizations. It is expected that all
organizations will behave in an ethical manner in the current economy. In today business
world, it is difficult to define what ethics are because of the different ethical beliefs people
have (The Journal of Accountancy, 2007).
Implementing good ethical behavior in a business helps the business become very
successful. In many organizations, bad ethical behavior can lead to many negative things
within the company that affects every person tied into the company. Some business people
do anything to earn money, even if it includes practicing unethical behavior.
Ethics are important in accounting and financial decision-making because ethical beliefs
and values provide the foundation on which a civilized society exists. Without a
foundation, the civilization would fall. The Sarbanes-Oxley Act of 2002 is an excellent
example of ethics in accounting and finances. "Following the rash of reported financial
statement frauds in 2001 and 2002, Congress passed the Sarbanes-Oxley Act (known as
the corporate responsibility act) in 2002. Sarbanes-Oxley Act is a law passed byCongress
which gives the SEC significant oversight responsibility and control over companies
issuing financial statements and their external auditors; the act creates a Public Company
Accounting Oversight Board with broad powers and authority to regulate the public
