Business Essay
- Submitted by: Bolan01
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- Category: Politics: Economics
- Date Submitted: 10/14/2010 10:58 AM
- Pages: 8
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Running head: BUSINESS ESSAY
Legal, Ethical, and Technical Concerns
In the Financial Reporting of Businesses
There cannot be a complete discussion regarding the legal, ethical, and technical concerns of the accounting and financial reporting of business without examining the responsibilities of the professionals involved in such reporting. As the text states, such critical and sensitive information should be handled with a supreme sense of discretion, acumen, and sound judgment. When looking at the managerial as well as the financial accounting of such companies as the Big 8 energy firms, the major banks, and the Silicon Valley firms, the professionals retained by such firms are privy to information that can negatively impact international markets if handled imprudently or released to unscrupulous parties. To quote directly from the text, “…professionals must act carefully and diligently…A professional must have the skill of the ordinarily prudent person in her profession.” (Mallor, Pg. 1159)
It is the experience of most adults based on this reasoning that any individual one may hire will perform to the best of his or her ability. Furthermore, one who hires such a professional usually engages their services based on a written contract that not only spells out the basic requirements of such services but also implies excellence in performance based on the knowledge and tools available to them as well as the training they have received to obtain certification. In other words, it is assumed that one would not knowingly hire an auto mechanic who is either completely incompetent, or worse, intentionally does shoddy work using inferior tools or parts. Such an individual who purposely engages in paid work without care or diligence can and should be held liable. This is precisely the scenario describing the events surrounding the Goldman Sachs fraud.
The SEC filed a complaint against the huge investment bank on April 16, 2010, accusing them of fraud for failure...
Legal, Ethical, and Technical Concerns
In the Financial Reporting of Businesses
There cannot be a complete discussion regarding the legal, ethical, and technical concerns of the accounting and financial reporting of business without examining the responsibilities of the professionals involved in such reporting. As the text states, such critical and sensitive information should be handled with a supreme sense of discretion, acumen, and sound judgment. When looking at the managerial as well as the financial accounting of such companies as the Big 8 energy firms, the major banks, and the Silicon Valley firms, the professionals retained by such firms are privy to information that can negatively impact international markets if handled imprudently or released to unscrupulous parties. To quote directly from the text, “…professionals must act carefully and diligently…A professional must have the skill of the ordinarily prudent person in her profession.” (Mallor, Pg. 1159)
It is the experience of most adults based on this reasoning that any individual one may hire will perform to the best of his or her ability. Furthermore, one who hires such a professional usually engages their services based on a written contract that not only spells out the basic requirements of such services but also implies excellence in performance based on the knowledge and tools available to them as well as the training they have received to obtain certification. In other words, it is assumed that one would not knowingly hire an auto mechanic who is either completely incompetent, or worse, intentionally does shoddy work using inferior tools or parts. Such an individual who purposely engages in paid work without care or diligence can and should be held liable. This is precisely the scenario describing the events surrounding the Goldman Sachs fraud.
The SEC filed a complaint against the huge investment bank on April 16, 2010, accusing them of fraud for failure...