Analysis of Ethical Issues in Accounting Essay

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Ethics shape the state of many businesses and display the owners’ intentions towards bettering the consumers’ lives. Ethical considerations are rules that the company should adhere to while making significant decisions concerning their customers and creditors (Schmitz & Leoni, 2019). The integrity of Key West Stores is an ethical consideration since it affects the business’s operations. Accountant does not display integrity in their job and place themselves at risk since the creditors are offended. It is also unfair when the business transfers the blame to the mailroom and the post office, knowing they are liable for the delay in delivery of the checks. It is unethical for Key West Stores to hold the bills and lie to their creditors to avoid penalties.

The stakeholders affected negatively by the conspiracy are the creditors, the mailroom, and the post office. Whereas the creditors lose money by paying more interest, the mailroom and the post office blame the delays in the checks. The creditors cannot complain since they are dependent on the business and thus pay for the excessively demanded money by Key West Stores. Conversely, the firm earns from the perfected delays hence the only party that benefits. Tiffany Lyons is another party that may be a victim of the activities. It will derail her emotions if she is not okay with conducting the lies.

Tiffany should not continue with the immoral practices started by Jay because they place her at risk of losing her trustworthiness in the organization. The business should give her a position to conduct her duty without oppression. It is Tiffany’s right to protect her reputation in the industry by opposing behaviors that put her at risk of losing her job. If she continues perpetrating the delays, her integrity becomes questionable, and she does not fit to stand for the position of assistant accountant. Jay has a chance to refuse to continue the delays if she is willing to protect her future career as an accountant. It is against the Financial Accounting Standards to delay accounting information since it affects decision-making by the users of accounting information. If the employer denies her a chance in the office due to her integrity levels, Tiffany may opt to leave the job and protect her image as a professional accountant.

The American Institute of Certified Public Accountants (AICPA) compiles specific standards for accountants and provides them with codes of conduct that guide accountants on various behaviors. The business defies the integrity and objectivity rule that requires professional accountants to remain steadfast in matters that require integrity and professionalism (AICPA, 2016). The integrity and objectivity of an accountant is a professional code of conduct that is vital for image building and professionalism. Accountants should be truthful and reliable when passing information. They should also be timely in the operations to give the statements timelessness. When information is timeless, it is useful for informed and timely decisions. Key West Stores should correct their behavior for ethical continuity.

As the assistant accountant, I would write to the management to inform them about my unwillingness to participate in fraud. Later, based on the management’s response to my decision, I would determine the next course of action. If the management is aware of the unfair dealings and keeps supporting them, I would quit the office to protect my image and professionalism. However, if the management supports my plea to convert the wrong dealings, I would accept the offer and work as an accountable, transparent, and reliable assistant accountant by delivering the checks within the appropriately scheduled time. Besides, I can act as a whistleblower to alarm the outside world about the fraudulent actions of the Key West Store.

References

AICPA. (2016). American Institute of Certified Public Accountants, Inc, 1-187. Web.

Schmitz, J., & Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: A research agenda. Australian Accounting Review, 29(2), 331-342. Web.

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IvyPanda. (2022) 'Analysis of Ethical Issues in Accounting'. 28 December.

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IvyPanda. 2022. "Analysis of Ethical Issues in Accounting." December 28, 2022. https://ivypanda.com/essays/analysis-of-ethical-issues-in-accounting/.

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IvyPanda. "Analysis of Ethical Issues in Accounting." December 28, 2022. https://ivypanda.com/essays/analysis-of-ethical-issues-in-accounting/.

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