Forensic Accounting Essay Example | Topics and Well Written Essays - 3000 words

Forensic Accounting - Essay Example (Lexicom, 2007) The standards that have been set are usually fixed making it hard for investors from other states to operate using the same starndards.Foreign investors usually have their standards and it becomes hard for them to cope with the new standards. (Lexicom, 2007) Principle based systems will provide a conceptual framework basis that will be followed by the accountants. In centrally, rule based systems has detailed rules which are to be followed. Under the principle based system, one will lay out the objectives of good reporting and then provides guidance that explains the objectives. In rule based systems the rules are unavoidable and its intent is not to provide guidance. Both systems are used by accountants depending on the nature of the objective. (Toppe, 2008) 1.2.1 IASC.This was formed as a not for profit organisation that is incorporated in the US. It is the parent entity of the IASB which is mandated with setting of standards. Its structure includes Trustees, Standard Advisory council, IASB and the International Financial Reporting Interpretation committees. (IFRS, 2012) 1.2.2 IASB assumes the accounting standard setting responsibilities from the IASC.This is because there was restricting on the move to shape IASC for the future. The structure includes IASC foundation. (IFRS, 2012) 1.2.3 SAC (Standard Advisory Council) is vital for it ensures that the objectives of the companies are met. This consists of the selected board of directors. They address on the matters that relates to the standards of the organisation. (Board, 2008) 1.2.4 IFRS Interpretation committee ensures that a consensus on the appropriate accounting treatment and providing an authoritative guidance on those issues. This normally consists of 14 voting members appointed by the trustees. (Board, 2008) 1.3.2 EC (European Commission) is mandated to regulate and

ETH501, Business Ethics, Mod 2 Session Long Project Essay

ETH501, Business Ethics, Mod 2 Session Long Project - Essay Example It is the company’s duty to inculcate such an environment in the company and practice such ethical behavior that employees have nothing bad to say about the company. Many companies, however, take the easier route, that is they coerce their employees to restrain from whistle blowing about the company. One such contract, where an employee was restrained from speaking anything bad about the company was offered Charles F. Frenette. The contract stated that the initial offer to him about a stock option will e forfeited if he is found disparaging or using bad words about the company. This was like stopping him from speaking what he wants or what he may want to speak in the future. And punishment levied on him for his freedom of expression would be forfeiting his monetary reward. As discussed before, you cannot force an employee to restrain from speaking and instead you should inculcate such policies with the company that it may never indulge in any wrongdoings and hence does not come under bad wording by its employees. Let’s now look at the issue under the two most important ethical frameworks of deontology and utilitarianism. Unitarianism is all about the good for the society. This principle states that every action should increase the goodness for the society in all cases. An action should only be taken if costs associated are less than the benefits attained from it. For example, if Coke’s decision to stop its employees from whistle blowing or from telling people about any wrong doing of the company, this action would bring upon people very negative effects and will save only the reputation of the company. In other words, the costs inflicted in the society might be very high as compared to the reputation of the Coca-Cola that will be protected from any controversy. Under this ethical framework, the clause added by the Coca-Cola Company is never justified. They are inflicting costs on the