Hcs 405 Ethics
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Reporting Practices and Ethics
Beth Lowery
HCS 405
October 22, 2012
Marjorie Romano
“The financial pressures experienced by most healthcare organizations are intense. Not surprisingly, financial statements receive frequent and persistent scrutiny. Declining financial performance makes the organization and its management team look bad. If financial covenants aren't met, a hospital's bond rating may be down-graded, resulting in reduced access to low-cost capital and other serious financial ramifications. For whatever reason, the board, management team, and external constituencies may want to "make the numbers look better." The heat is on the CFO to "do the books differently." Some organizations still hold the CFO account able for the organization's financial performance even though he or she may have no control over the actions that lead to negative financial consequences. The CFO may worry about job security” (Tyler). It seems that all or most health care organizations are in trouble financially and that all organizations are in a desperate search for a financial management system that will work for them. This paper will discuss generally accepted accounting principles, corporate compliance, ethics, fraud and abuse.
Generally Accepted Accounting Principles
“The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices. If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's...
Beth Lowery
HCS 405
October 22, 2012
Marjorie Romano
“The financial pressures experienced by most healthcare organizations are intense. Not surprisingly, financial statements receive frequent and persistent scrutiny. Declining financial performance makes the organization and its management team look bad. If financial covenants aren't met, a hospital's bond rating may be down-graded, resulting in reduced access to low-cost capital and other serious financial ramifications. For whatever reason, the board, management team, and external constituencies may want to "make the numbers look better." The heat is on the CFO to "do the books differently." Some organizations still hold the CFO account able for the organization's financial performance even though he or she may have no control over the actions that lead to negative financial consequences. The CFO may worry about job security” (Tyler). It seems that all or most health care organizations are in trouble financially and that all organizations are in a desperate search for a financial management system that will work for them. This paper will discuss generally accepted accounting principles, corporate compliance, ethics, fraud and abuse.
Generally Accepted Accounting Principles
“The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices. If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's...