This paper is both a response and a discussion on an ethical case on accounting. The case in question involves Lynn Oaks, a donor and financier of Good Works for women, which is a charity organization. The newly employed director at Good Works is Jill Lassiter. She has discovered that the organization has been misusing the donor funds. In addition, the company has been presenting false statements to Lynn Oaks stating that it uses the donations for run childcare programs. In order to satisfy the organizations largest donor, Jill is supposed to impose false statements which contain faulty estimates. This is meant to enable the company receive donor funding. Jill is torn between presenting candid information regarding the problems faced by the company and concealing the evidence to that the company can continue to receive funding. This paper attempts to give an ethical response to the issue.
There are many problems that could result in the issuing of false statements by a company. To begin with, the organization could be faced with a lawsuit due to presentation of vindictive information in case of any controversy. This can lead to failure of the business owing to lack of donor funding. Many donors usually rely on audited information from private organizations. In case the organization is audited by an independent firm, it could easily lose its largest donor. In addition, the organization could also be faced with many repercussions arising from lawsuits for violation of ethical codes contained in the accounting standards and principles.
As an ethical accountant, Jill Lassiter should stand by her rights and present the rightful information about financial welfare of her organization to the donors. This does not mean that the donor will stop funding the company. On the one hand, the donor might reconsider the problems faced by the organization and even increase the donor funding. All the accounting statements presented to the donor should have the exact estimates for the welfare of the organization’s funding. This will also help to prevent any problems in case of a lawsuit. Moreover, it will be easy to conform to the audited information when the donor requires the auditing report.
Accounting is governed by ethical codes of conduct as the director at Good Works for women, Jill should conform to them. The codes of ethics in accounting help to guide business organizations and employees to focus on ethical accounting for good results. These codes have been accepted by international financial accounting standards. Jill has no option but to conforming to the laws. In addition, the director should also ensure that every stage of accounting has been ethically approved to improve morals in the accounting process. This will also improve presentation of statements which are not false.
To sum up, the director of Good Works should engage in presenting the rightful information for the future welfare of the company. This shows that she has followed ethical accounting principles. In the accounting practice, the correct figures and facts are considered. This is because they help to show ethical professional practice. Nevertheless, Jill also stands out to lose in the event when she has presented false estimates to the donors. Apart from withdrawing donor funds, the donors may file legal suits leading to final loss of the organizations assets. Therefore, the director of Good works should be candid about the organization’s problems.