Ethics in Accounting and Financial Decision Making

Essay by jasmyn76University, Bachelor'sA+, June 2007

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Many organizations today place significant emphasis on ethics and the financial decision making process within the organization. Organizations are expected to behave in an ethical manner in the current economy. There are many factors that influence organizations to ensure and enforce ethical policies. The purpose of this paper is to discuss ethics in accounting and financial decision making, how it relates to the United States Amy.

An article written by William Schreiber (2003) discusses the challenges faced by CPA's. The article explained how Clients ask CPAs to forgo his or her integrity when they ask the CPA to bend the rules, or when the client attempts to rationalize why the rules should be interpreted in a manner that differs from the intended meaning.

The concepts of the article relate closely to the budgeting and spending with the United States Army. The supply specialist assigned to manage the fiscal budget must be accurate in the financial records.

Records are kept through receipts, the financial records show how much money was spent throughout the fiscal year for different areas such as office supplies; special events; etc. The figures assist the Department of the Army in determining the future fiscal budget. When different areas have excess funds, the end result is that those areas will likely have less on the budget. Despite the fact that there may be an assumed need or desire to embellish the financial figures. The individual handling the financial reports must use integrity and objectivity to ensure that the proper figures are being reported to the senior command.

Integrity was addressed in the article. In the United States Army integrity is a characteristic that is expected from each soldier. In the handling of financial matters integrity is of the utmost importance. It is my recommendation that the budget...