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Outline
Motivating Forces for Unethical Behavior. Effective Ethical Controls. Effective internal controls. Conclusion. References.
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Is one discipline of study that all people regardless of job position should have some knowledge of How to read your bank statement? Know your financial gains and losses Your income! What are your tax dues? Its useful in peoples everyday lives. Companies must have reliable financial statements for both internal and external users.
In the U.S., according to the Association of Certified Fraud Examiners (ACFE), losses from fraud and abuse => $600 billion In Egypt, ..??????? Classic Case of Deception and Double Interests: Enron
Arthur Andersen = Auditor + Internal Auditor + Management consultant!!!!!!!!!!!!!!
Company uses several different banks, none sees full financial picture.
One or two individuals dominate the company.
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Solution???
Situational Pressures
Low
High
Opportunities
Low
Low
High
Unethical
(Hall, 2004)
Ethical
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A code of conduct that applies to the practice of a profession. AICPA adopted codes of professional conduct that must be followed by CPAs.
Integrity IntegrityIntegrity Independence Independence Independence Objectivity Objectivity Due Care Objectivity Due Due Care Care
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Control Activities:
Transaction Authorization Segregation of Duties Supervision Accounting Records Access Control Independent Verification
Safeguard Assets of the Firm Ensure Accuracy & Reliability of ACCT Records & Info Promote Efficiency in the Firms Operations
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Conclusion
Effective Ethical Control Effective Internal Controls
Situational Pressure
Personal Integrity
Opportunities
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References
Gamal, Wael (2002). Book-Fixing, Here and There. Al Ahram Weekly. 22-28 August. Hall, James A (2004). Accounting Information Systems. Thomson. South Western. Needles, Belverd E., Jr.; Powers, Marian; Crosson, Susan V. (2002). Principles of Accounting. Houghton Mifflin Company. Boston. New York.
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Thank You
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