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Pros And Cons Of Poor Accounting

1767 Words8 Pages

Responsibility for Poor Accounting: Are Accountants Always To Blame? Accounting is the process of “analyzing, recording and summarizing” financial information into useful and reliable financial statements that would serve as an overview of the business’ financial performance to both internal and external users. Accountants are the people who deal with this as a career, that is, to professionally maintain a business’ accounts up-to-date. It’s easier to put the process into words than to execute it. And that’s the reason why it takes a long time for an accountant to acquire the needed experience and to achieve a level of trust and professionalism in the eyes of the business’ management. However, instances of poor accounting may take place. And in most cases, such instances result in monetary losses for a business. Monetary losses and poor accounting are often blamed upon accountants (alongside managers or solely) but based on detailed observation several reasons prove the contrary and are mainly related to the internal management. …show more content…

Managers are usually in charge of taking all the needed and right decisions for a business. Some of the managers’ tasks include choosing the right financial accounting method, risk assessment, and monitoring activities. One of the cases that show how management controls are important and how bad it affects the business when it’s wrong is the Toshiba scandal that came up in 2015 where the management decisions were never questioned by the employees (accountants included) and this resulted in an overstatement in the company’s earnings for seven years. Another less known incident mentioned in a news article by the Washington Examiner was a theft case in the US Embassy in Tbilisi, Georgia where poor security controls led an employee (now a former employee) to steal $160K over a period of four years (2010 to 2014) and eventually get away with it (Joel Gehrke,

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A great example of fraud was when Peter and the two employees hacked the corporate system in order to transfer money to their personal accounts. Moreover, theft is executed when they stole the copier machine with the only intention to destruct it. These types of frauds have been considered misappropriation of assets since both, the money and the copier machine, were counted as a part of the company assets and they as employees of the IT company abuse of their job positions to benefit their personal needs through the omission of fraudulent

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What is accountability and why is it important to governmental accounting? Accountability is often considered the most vital motivation behind correctly preparing the necessary governmental financial reports. The Governmental Accounting Standards Board (GASB) states, “Governmental accountability is based on the belief that the citizenry has a ‘right to know,’ a right to receive openly declared facts that may lead to public debate by the citizens and their elected representatives. Financial reporting plays a major role in fulfilling government’s duty to be publicly accountable in a democratic society” (Halsey, Hopkins 2014). In this paper, I will be discussing why accountability is the most crucial point in governmental accounting and what accountability actually entails.

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The Unnatural Act of Management has been assigned to students at the Law Enforcement Command College at Columbus State University and during his life Suters was often asked to speak as a guest. Suters was also a guest lecturer at the Georgia Public Safety Training Center and the Georgia Bureau of Investigations. Suters’ experience in the business world made him uniquely qualified to write about management.

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1710 Words | 7 Pages

It is easy for those accountants that are unethical to alter the financial records of a company. This makes the company seem to be doing well in the short term, but in the long run, it leads to failure of the company. The other ethical issue is a falsification of documents. Falsification of documents involves changing the details of the documents which are original so that they can appear real ( Bampton and Cowton, 2013, p.552).this is done with the aim of deceiving another person. Some of the documents that are easily falsified are personal checks, tax returns, bank accounts records and birth certificates among others.

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