Review of Accounting Ethics
Running head: Assignment 1
"Review of Accounting Ethics"
Christopher Nevels
Dr. Peter McDanel Acc 557
10-28-12
Review of Accounting Ethics
Ethics is a very important aspect of accounting and should be taken very seriously as accountant. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. The opinions of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company. Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor 's reporting. “As part of the largest financial fraud in U.S. history involving mega thief Bernard Madoff, a New York auditor, David Friehling is facing jail time for deceiving investors by signing off on fraudulent financial statements. Mr. Friehling, 49 years old, worked for Mr. Madoff from 1991 to 2008, running his storefront operation out of an ordinary office in New City, a suburb of New York City, N.Y. Mr. Friehling is to convicted of charges including aiding and abetting investment adviser fraud, securities fraud and four counts filing false audit reports to the United States Securities and Exchange Commission. It was also found by the United States Securities and Exchange Commission that Friehling and his family had $14 million invested in the Mr. Madoff‘s firm which violates auditing rules and standards. It is believed that Friehling is facing up to 105 years in prison for the breaches of accounting professionalism, along with a definite loss of his accounting license. Friehling also claims he had no idea of the Ponzi scheme and had no intention of breaching accounting violations.
"Review of Accounting Ethics"
Christopher Nevels
Dr. Peter McDanel Acc 557
10-28-12
Review of Accounting Ethics
Ethics is a very important aspect of accounting and should be taken very seriously as accountant. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. The opinions of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company. Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public who relies on the accountant/auditor 's reporting. “As part of the largest financial fraud in U.S. history involving mega thief Bernard Madoff, a New York auditor, David Friehling is facing jail time for deceiving investors by signing off on fraudulent financial statements. Mr. Friehling, 49 years old, worked for Mr. Madoff from 1991 to 2008, running his storefront operation out of an ordinary office in New City, a suburb of New York City, N.Y. Mr. Friehling is to convicted of charges including aiding and abetting investment adviser fraud, securities fraud and four counts filing false audit reports to the United States Securities and Exchange Commission. It was also found by the United States Securities and Exchange Commission that Friehling and his family had $14 million invested in the Mr. Madoff‘s firm which violates auditing rules and standards. It is believed that Friehling is facing up to 105 years in prison for the breaches of accounting professionalism, along with a definite loss of his accounting license. Friehling also claims he had no idea of the Ponzi scheme and had no intention of breaching accounting violations.
Cited: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Financial accounting. (8th ed.). Hoboken, NJ: John Wiley & Sons. One news(2008). Accountants admit breach of ethics, retrieved October 19, 2012, from http://tvnz.co.nz/content/1871902/425823/article.html Bizcovering(2010). A Breach of Professional Accounting Ethics, retrieved October 24, 2012, from http://bizcovering.com/accounting/a-breach-of-professional-accounting-ethics/ Gini, A. (2005). Case studies in business ethics (5th ed.). Upper Saddle River, NJ: Prentice Hall.