Wells Fargo: Integrity, Objectivity, And Due Care
Wells Fargo
In regards to this case, the Wells Fargo bank failed to meet accounting standards such as Integrity, Objectivity, and Due Care. The Wells Fargo’s employees did so in order to meet the unreasonable standards set forth by the banks CEO.
For the accountants and auditors, integrity considers one of the primary characteristics required to establish a successful relationship with their clients. Moreover, integrity allows users, such as investors, to trust the financial information they receive about the companies that they have the desire to invest in. To ensure every accountant follows the same concepts, the accounting statements and financial reports must be accurate, relevant, and understandable. Which did not happen in Wells Fargo case because most of the financial reports were inaccurate. Even though the Motivator, which is the monthly reports, were arranged to achieve the bank …show more content…
The breached accounts that were created by the employees are obviously considered fraudulent.
Wells Fargo bank also violated the confidential ethical principle. Which is another important element to establish a positive and trustworthy relationship with clients. The bank violated this principle by using their customer’s information to create new account without their permission.
Due Care was another one of the ethical practices that was not met by Wells Fargo bank. “Due Care” refers to the level of responsibility that a professional accountant would take against any suspicious financial information. In regards to this case, the level of due care was very low. Adam Pasick said, between 2011 and 2016, more than eight hundred employees called the ethics hotline complaining about the counterfeit accounts. However, the bank ignored all the
In regards to this case, the Wells Fargo bank failed to meet accounting standards such as Integrity, Objectivity, and Due Care. The Wells Fargo’s employees did so in order to meet the unreasonable standards set forth by the banks CEO.
For the accountants and auditors, integrity considers one of the primary characteristics required to establish a successful relationship with their clients. Moreover, integrity allows users, such as investors, to trust the financial information they receive about the companies that they have the desire to invest in. To ensure every accountant follows the same concepts, the accounting statements and financial reports must be accurate, relevant, and understandable. Which did not happen in Wells Fargo case because most of the financial reports were inaccurate. Even though the Motivator, which is the monthly reports, were arranged to achieve the bank …show more content…
The breached accounts that were created by the employees are obviously considered fraudulent.
Wells Fargo bank also violated the confidential ethical principle. Which is another important element to establish a positive and trustworthy relationship with clients. The bank violated this principle by using their customer’s information to create new account without their permission.
Due Care was another one of the ethical practices that was not met by Wells Fargo bank. “Due Care” refers to the level of responsibility that a professional accountant would take against any suspicious financial information. In regards to this case, the level of due care was very low. Adam Pasick said, between 2011 and 2016, more than eight hundred employees called the ethics hotline complaining about the counterfeit accounts. However, the bank ignored all the