The Principles Of A Firm Or Company Making Ethical Decisions

Principles of Auditing Is your firm or company making ethical decisions? Making ethical decisions is not always the easiest thing to do and can bring about an ethical dilemma. Ethic dilemma can involve different incident where the welfare of individuals can be impacted by the result of one’s decision (Whittington Pany, 2014). Discerning the intentions that lead individuals to make a business decision is significant, for it enables the â€Å"moral evaluation of the decisions†, in which is critical to developing an ethical business (Di Norcia Tigner, 2000). One most look at the entire situation and understand where risk may lay to ensure an honest business. This can be done by utilizing a general decision making framework and asking specific questions around the situation such as identify course of action, constraints relating to the decisions, likely effect, and selecting the best course of action (Whittington Pany, 2014). To understand if the independence of a firm is impaired by specific incidents or situations, one must review the entire situation and understand different aspects, in which may potentially be considered unethical and determine if firm’s independence would be impaired. Set Fourth Arguments – Case 1 In the case study, where a partner in the firm has a girlfriend whom has purchased shares in one of the audit clients of the public accounting firm, the argument can be seen in both impaired and not impaired. TheShow MoreRelatedThe Travel Expense Billing Controversy1411 Words   |  6 Pagesclients of the firm. These rebates were not being returned to the firm’s clients in the form of savings, but the firm was keeping these rebates for it. This was working, because the firm would bill the clients for the full price of airline tickets and other travel-related expense, but privately, the firm negotiated discounts and rebates that they then got at the end of the year based upon total amounts spent. The clients did not know anything of the back-end discounts and rebates the firm was getting;Read MoreCase Study : Insurance Groups Current Governance Protocols And Practices1550 Words   |  7 PagesIntroduction Competent, ethical and methodic corporate leadership contributes immensely to the success of corporate business organizations in the 21st Century. The formulation of rules, regulations, and policies are essential in the governance of a corporation to mitigate and control any identifiable risk to the firm. These policies form the basis of key principals, which govern the routine operations of an enterprise. 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For the risk taken by investing in the firm, Friedman says the goal of the firm is to maximize profits and return portions of those profits to shareholders. Because a firms’ only concern is to increase profits for themselves and shareholder, they have not social responsibility to the public or society. The shareholder