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Ethical practices in accounting
Ethical challenges facing accountants
Ethical practices in accounting
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Whistle blowing is a controversial topic in the professional industry. Whistle blowing is the act of speaking out against a fellow colleague or even a friend that has done something non-ethical or illegal in the workplace. A whistleblower raises concerns about the wrongdoing inside of the workplace. Employees hesitate to become a whistleblower because of the idea of becoming a snitch on fellow employees and having a bad rep around the office. This concern was lowered in 1989 with a law called the Whistleblower Protection Act that protects federal government employees in the United States from retaliatory action for voluntarily disclosing information about dishonest or illegal activities occurring at a government organization (whistleblowers.gov). …show more content…
CPA’s have a confidentiality obligation to not distribute client information, which extends to the actions of the firms that deal with client matters, such as failed audits (workplaceethicsadvice.com). A whistleblower can come out and show these audits that are kept a secret and be protected under the Dodd-Frank Act. The Dodd-Frank Act allows accountants to come forward without punishment and possibly be rewarded with a financial bonus. Even though there will not be any punishment for being a whistle blower, accountants still hesitate because of the image it sends to the companies they may be working for. Corporate accountants might be seen as dishonest or disloyal if they blow the whistle on the wrongdoing of their …show more content…
This occurs when someone tells a coworker about an illegal or immoral practice, in hopes that this person will do something to change the company. This usually occurs when they are trying not to cause any bad publicity for the company. If a company discourages the internal reporting, they are likely to become worse off and the individual that initially started the internal report will have to go out of the company and notify a governmental agency or even the press. From an ethical standpoint, internal reporting is a big part of keeping companies clear from whistle blowing. Even when whistleblowers keep the problem inside the company, they are still often seen as traitors or not company
First I will be telling you about the pressure of being a “whistleblower”. In Fahrenheit 451 the pressure of being a “whistleblower” is so real, everyone is told to rat out everyone who has a book in their household, if they find out they have a book in the home it is burned to the ground. This is related to our society because we are pressured to do what is right, and part of my belief system is to do what is right and to point out what is wrong. For example if someone were to gossip behind their back I would try to stand up and tell them it is wrong and tell the person what the others said
The popular sitcom that is now one of today’s pop culture`s favorites, is based on the original British sitcom The Office and later began to air on NBC. With characters that are relatable to any office environment, The Office does cause many to question the violation of ethics in this sitcom. The show features Michael Scott the manager at Dunder Mifflin, who is the center of many questionable actions. Because every show needs a good love story; Pam and Jim are introduced as the office lovers who win the award for “relationship goals”. Besides the main characters, the cast consists of unmotivated employees.
The Sarbanes-Oxley Act was drafted to encourage and protect whistleblowers from retaliation after the fraud scandal that cause the collapse of Enron in 2001. In a 2010 Senate Report found that “external auditors detected only 4.1 percent of uncovered fraud schemes, “whistleblower tips detected 54.1% of uncovered fraud schemes in public companies” and were thirteen times more effective than external audits” (Turpan, 2016). Whistleblowers serve an important service to the public and are more effective than external audits. The CFAA has been used to by employers to retaliate against employees who act as informants for agencies like Internal Revenue Service or Security Exchange Commission to expose fraud. There employees, not to their financial gain, gather information as evidence of fraud by the company. With a broad interpretation of CFAA, the employee would "exceed their authority" and was "unauthorized" to access the information, therefore allowing the company to hide their illegal
Which allows employees that have observed any illegal acts or acts that raise concern to be able to report to a company hotline that allows that individual to report with the secrecy of the act without fear of retaliation from the company. Generally, whistleblowers are employees that are dedicated to the company and is a model employee. They do not have any intentions of hurting the company, but rather to improve the company. By having an anonymous reporting method of any situations allows employees to feel that the company values their opinions and actually care what is happening within the company. Another reason that this is a plus is because this keeps everybody honest, since there is an open door policy of reporting any illegal acts. The best way to implement this protocol is to educate employees on what the purpose of the program is. Then train the employees on the simple reporting procedures and certify that everything is clearly written and efficiently understood. When the complaint has reported an Ombudsperson or manager will report the matter to upper management to conduct an internal investigation. When all is done and the complaint is true, then actions will be done to correct the problems. In this case of the secretary being fired for refusal to prepare false expense reports for her boss, there is no need for her to be terminated instead this allows the creation of the whistle-blowing hotline for the company to investigate any illegal acts within the
Bouville (2008) describes whistleblowing as an act for an employee of revealing what he believes to be unethical or described as an illegal behaviour to a higher management (internal whistleblowing) or to an external authority or the public (external whistleblowing). Whistle-blowers are often seen as traitors to an organisation as they are considered to have violated the loyalty terms of that organisation while some are described as heroes that defend the values and ethics of humanity rather than loyalty to their company. In the medical community, it is the duty of a practitioner aware of patient care being threatened to make it known to those in charge and for those in charge to address the issues and act on it. The General Medical Council (GMC) stipulated this act of raising concern as a doctor’s duty in its Good medical practice guide. This paper will be based on the analysis of the experience of whistle blowers, reasons why they chose or chose not to take such actions and personal opinions on whistleblowing in the medical community.
Whistle-blowing can be defined many different ways. For example, from page 384 in the book, whistle-blowing is the voluntary release of nonpublic information, as a moral protest, by a member or former member of an organization outside the normal channels of communication to an appropriate audience about illegal and/or immoral conduct in the organization or conduct in the organization that is opposed in some significant way to the public interest. For a simpler explanation of the term whistle-blowing, Merriam-Webster defines the term as, an employee who brings wrongdoing by an employer or other employees to the attention of a government or law enforcement agency and who is commonly vested by statute with rights and remedies for retaliation.
The term Whistleblower means “An employee who discloses information that s/he reasonably believes is evidence of illegality, gross waste or fraud, mismanagement, abuse of power, general wrongdoing, or a substantial and specific danger to public health and safety. When information is classified or otherwise restricted by Congress or Executive Order, disclosures only are protected as whistleblowing if made through designated, secure channels. (What is a Whistleblower?)” The idea behind whistleblowers is that they believe trying to inform the public of illegal acts within their businesses has the potential to protect the public from wrongdoing. The following studies analyze scholar’s findings on different factors related to whistle blowing as
“Faced with what is right, to leave it undone shows a lack of courage” (Confucius Quotes, 2012). The person who does her duty, at great risk to her own interest, when most others would defy from fear is considered a hero (Schafer, 2004). Dr. Nancy Olivieri is a hero who blew the whistle on Apotex, University of Toronto (U of T) and the Hospital for Sick Children (HSC); and fought for her academic rights till the end. Whistle-blowing refers to actions of an employee that breach her loyalty to the organization but serves the public interest. When other constraints proved to be ineffective, whistle-blowing acts as a check on authority of the organization. Whistle-blowers expose severe forms of corruption, waste, and abuse of power within their organization and put the organization in a position where it is answerable to the public, thus enhancing its accountability (Cooper, 2006, pg. 198-205).
Corruption is a persistent problem that plagues the world and it knows no boundaries. Transparency International defines it as the “abuse of entrusted power for private gain” (2013). For the purposes of this thread, ‘corruption’ is defined as any individual, collective, or structural act or process that permits the use of public authority or position for private gain. This definition captures the broad and many ways individuals and institutions abuse power and the public trust. In regard to whistleblowing, much conflict stems from the context in which the whistleblower is viewed.
Whistleblowers often make their way into the public eye, but what is a whistle blower exactly? What are the criteria? Whistle blowing is "raising the alarm in public about a wrong being committed in private" (Vickers, 2002, p.42). By definition, a whistle blower can only "blow the whistle" on an organization of which he is a member (Vickers, 2002). That point is rather obvious. After all, the concept of being a whistleblower is providing inside information. Also, it brings up a significant problem. People are reluctant to "blow the whistle" because they can lose everything they worked for. It seems almost unfair. The person in this predicament will have to decide whether or not to keep his job as is, or to do the right thing and tel...
On November 29th, Mary Inman gave us a talk on the topic whistleblowing, which let me know more about the whistleblower activities and the whistleblower protection. According to the definition given by the website whistleblowers international, whistleblowing is someone who reveal the unethical or illegal activities within the company. The person can be current or past employee, or an outside individual who is familiar with the unethical activity. This whistleblower does not need to be U.S. citizen.
Question #1 In general, I look at whistle blowers as heroes. Whistle blowers are the people who stand up for what is “right” when no one else will. They try to protect anyone who could possibly be injured in the process. They risk their personal safety and face constant backlash for shedding light on the truth. While being a whistleblower is not necessarily a glorious job, it is necessary for the public’s best interest.
Unless the information is summoned or subpoenaed, the auditor cannot disclose confidential information. Furthermore, the standards created by the AICPA and ACFE illustrate the importance of confidentiality in the accounting profession. Information given by a client should always remain confidential unless permission is given. Tax examiners, on the other hand, are required to follow Internal Revenue Code (IRC) 26 U.S.C § 6103, which includes handling varying levels of disclosure.
This is the idea that an internal individual exposes wrongdoing to those within or outside of the individual’s organization. This can mean that he discovers his supervisor is acting unethically and goes above his head to report him, or in some extreme cases, he goes outside of the organization to expose major wrongdoings to the public or to the appropriate authority figures. The term whistleblowing is generally only used when an insider exposes things about his own organization. The first use and origin are unknown to us, although some relate this to a whistle indicating danger or police officer blowing his whistle to stop wrongdoing. These instants are still questionable because they depict outsiders warning of another entity whereas whistleblowing is from an internal source. Regarding Dr. Baslow and his case he was the internal source that came out to tell the public what is wrong. His manner in this instance earned him an award, the AAAS for Scientific Freedom and Responsibility. He was a co-recipient for the very first award given out. Immediately following his release of documents to the EPA he was fired and unemployed for many years. This award helped him to find a position on a research project at Cornell University. After this he decided to follow a new career as a high school science
Whistle blowing is an attempt of an employee or former employee of a company to reveal what he or she believes to be a wrongdoing in or by a company or organization. Whistle blowing tries to make others aware of practices that are considered illegal or immoral. If the wrongdoing is reported to someone in the company it is said to be internal. Internal whistle blowing tends to do less damage to the company. There is also external whistle blowing. This is where the wrongdoing is reported to the media and brought to the attention of the public. This type of whistle blowing tends to affect the company in a negative way because of bad publicity. It is said that whistle blowing is personal if the wrongdoing affects the whistle blower alone (like sexual harassment), and said to be impersonal if the wrongdoing affects other people. Many people whistle blow for two main reasons: morality and revenge.