Principles or Profits: The Ethical Crossroads of Accounting

Presenter

Clifton Pierre-Antoine

Campus

Massasoit Community College

Sponsor

Lynda J. Thompson, Department of Business, Massasoit Community College

Schedule

Session 3, 1:30 PM - 2:15 PM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board C1, Poster Showcase Room (163), Row 1 (C1-C10) [Poster Location Map]

Abstract

Reaching a high level of financial success is an arduous journey. Maintaining that level of financial success is even more arduous, especially in times of uncertainty. Companies can find themselves operating at a net loss, often putting accountants in a critical predicament when preparing financial statements. Do they go by the book and risk the company filing for bankruptcy, or do they cook the books and live to fight another day? While it is ideal to choose the former, many companies are often tempted to choose the latter and falsify their financial statements to make their companies look more profitable and financially stable than they are. Through extensive research using credible databases and real-life cases, this paper aims to explain this reality that so many companies manifest by finding loopholes in this flawed system through the different accounting methods: financial and managerial. This paper also seeks to understand these flaws (unethical, yet legal) and the steps taken to correct them.

Keywords

accountability, loopholes, greed, criminal cases, solutions

Research Area

Business & Economics

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