| Submitted by: | atif1126 |
| Date: | 01 / 25 / 2009 |
| Category: | Business and Marketing |
| Words | Pages: | 584 | 3 |
| Views: | 229 |
Week 1 Written Assignment
Above the Law: An Executive's Double Standard
By effectively overseeing management and addressing the risk of management override, audit committees increase the likelihood of preventing, deterring, and detecting fraudulent financial reporting. Even though internal control over financial reporting (hereinafter referred to as internal controls or simply as controls) may appear to be well-designed and effective, controls that are otherwise effective can be overridden by management in every entity. Many financial statement frauds have been perpetrated by intentional override by senior management of what might otherwise appear to be effective internal controls. Troy Sozuko was the SVP of Brazos Manufacturing Inc. and had asked Jack to change his W-2 form to show that he has used his car for personal use. Upon further investigation by Jack, it was discovered that Troy was using company’s finances for his personal use.
IMA Code of Ethics for Management Accountants are: Competence, Confidentiality, Integrity, and Objectivity. Tory never followed applicable laws, regulations and standards. Ethical values provide the foundation on which a civilized society exists. Without the foundation, civilization collapses. On a personal level, everyone must answer the following question: What is my highest aspiration? The answer might be wealth, fame, knowledge, popularity, or integrity. However, if integrity is secondary to any of the alternatives, it will be sacrificed in situations in which a choice must be made. Such situations will inevitably occur in every person's life. The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services. In the accounting field, the AICPA maintains and enforces a code of professional conduct for public accountants. The Institute of Management Accountants ( IMA) and the Institute of Internal...
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