Ethical Framework
Types of ethic system frameworks: there are 5 types of ethical system frame work;
Ethical frameworks provide guidance on how CFO can adopt in the decision making process when dealing with financial reporting decision based on the frameworks adopted. Various ethical frameworks may be used which include:
1. The non-cognitivism ethical approach argues that there are no objective ethics as moral statements are influenced by culture, beliefs and personal emotions.
The concept of right and wrong are culturally determined based on societal norms. The CFO‘s decisions are judged on their compliance with societal expectations. Relativism reduces confrontation about what is wrong and right. It considers cultural beliefs. The CFO decision mirrors people expectations. This approach accepts every behavior by the CFO and ignores some natural truths which are indisputable.
2. The Cognitism approach accepts the objectivity of ethics and their universal applicability regardless of culture. The decisions and judgement by the CFO are subjected to absolute expectations shared by all stakeholders. These ethics are based on religion, law, and natural moral rules which prescribe rights and obligations. It …show more content…
This used to generate high earnings per share in the short time. Arens and Loebbecke (1994) went on further to say fraud is misstatement made and there is both the knowledge of its falsity and intent to deceive. This demonstaret the absence of ethics at the post conventional level as provided by Kolhberg. The CFO demonstrated lack of any conviction in the value of the various reporting frameworks he had to adhere to. Elliot and Elliot (2011) has put this way, where senior executive has a forceful personality there is need for some- one who can constructively challenge and make such major decisions are seriously
Ethical frameworks provide guidance on how CFO can adopt in the decision making process when dealing with financial reporting decision based on the frameworks adopted. Various ethical frameworks may be used which include:
1. The non-cognitivism ethical approach argues that there are no objective ethics as moral statements are influenced by culture, beliefs and personal emotions.
The concept of right and wrong are culturally determined based on societal norms. The CFO‘s decisions are judged on their compliance with societal expectations. Relativism reduces confrontation about what is wrong and right. It considers cultural beliefs. The CFO decision mirrors people expectations. This approach accepts every behavior by the CFO and ignores some natural truths which are indisputable.
2. The Cognitism approach accepts the objectivity of ethics and their universal applicability regardless of culture. The decisions and judgement by the CFO are subjected to absolute expectations shared by all stakeholders. These ethics are based on religion, law, and natural moral rules which prescribe rights and obligations. It …show more content…
This used to generate high earnings per share in the short time. Arens and Loebbecke (1994) went on further to say fraud is misstatement made and there is both the knowledge of its falsity and intent to deceive. This demonstaret the absence of ethics at the post conventional level as provided by Kolhberg. The CFO demonstrated lack of any conviction in the value of the various reporting frameworks he had to adhere to. Elliot and Elliot (2011) has put this way, where senior executive has a forceful personality there is need for some- one who can constructively challenge and make such major decisions are seriously