My “Personal” philosophy on ethics as a fundamental business concept
In the current environment of business, ethics is important as it guides human behavior and decision making in choosing bad or good. Ethics defines human values and moral principles and can help prevent bad things from happening. Business ethics comprises the use of certain moral standards to organizations and systems to offer better services to customers and firms. My personal philosophy is on ethics as a fundamental business concept is to maintain values of fairness, integrity, and honesty. Honesty in terms of establishing reasonable costs for quality services and products, conducting ethical advertising, and keeping promises to customers. Meanwhile, integrity is in terms of maintaining corporate social responsibility, which includes being environmentally and socially responsible. On the other hand, fairness is in terms of treating customers or buyers and employees fairly during commercial dealings.
How I plan on identifying and analyzing the principle elements of business ethics within the prospective accounting firms (be specific)
It is crucial to identify and analyze elements of business ethics, especially in accounting, to prevent the possibility of accounting fraud. My framework of identifying and analyzing the principle elements of business ethics would be based on the guidelines provided by the American Institute of Certified Public Accountants. The guidelines are based on six principles or codes of behavior, including the nature and scope of services, due care, independence and objectivity, integrity, serving the interest of the public and responsibilities. The guidelines will help indicate whether the accountants show professionalism by fulfilling their duties to those they serve, the public, their colleagues, and clients. Using the guidelines, I will be able to establish whether or not the accountants have been committed to maintaining professional and ethical conduct even when they were to lose personal benefits. By assessing with the accountants or the firm maintained moral and professional judgment in their activities and recognized their responsibility to colleagues, clients, and the public, I will find out if they have the element of responsibility.
Additionally, I will examine how the accountants acted in a manner that keeps the public’s confidence, as recommended by Crawford and Loyd (2008). A firm that can exhibit a commitment to public trust through their accountants who act in a manner that serves the interest of the public admirably demonstrates the principle element of serving public interest. I will also look for integrity, mainly whether accountants do their work by focusing on the right thing to maintain public confidence. I will examine whether or not the prospective firm maintains integrity by assessing clients’ confidentiality in the organization. Furthermore, I will find out if the firm’s accountants always remain objective and do not get close to clients, as well as remain independent during conflicting interests. I will determine if the accountants often remain intellectually honest and impartial during conflicting interests, thus boosting their ability to offer attestation services. I will also assess the principle element of due care by examining if the firm supervises and plans adequately in their professional activities, which they have responsibility. Lastly, for the nature and scope of services, I will evaluate whether members of the firm observe the codes of professional behavior in determining the nature and scope of the services which are provided.
How I plan to ensure the non-ethical conduct of the previous firm will not happen again (internal control measures) specifically under three headings:
Cost Analysis
I plan to ensure that the non-ethical conduct of the previous firm will not happen again by establishing internal control measures such as by conducting cost analysis, assessment of new contracts, and ensuring that there is participation in efforts of efficient control of expenses. Cost analysis is crucial as it estimates the output-cost relationship and can show a firm’s financial position. Through cost analysis, it becomes possible to keep track of a firm’s liabilities and assets, can be used to calculate loss and profit, as well as be used for taxation reasons.
Analysis of new contracts
I will also ensure that non-ethical conduct does not happen again by analyzing new contracts. I will evaluate new arrangements for substantive tests, audit review, and risk assessment. Through risk assessment, I will be able to determine expiring patterns and litigation risks. Furthermore, substantive tests will help assess revenue and sales made through new contracts. Lastly, through the audit review, I will be able to uncover fraud or error loss.
Participation in efforts to control expenses efficiently
The accounting organization will help the department managers to review the overall departmental operating caps and budgets to mitigate or isolate deviations from the amounts which are budgeted, and find certain cost overrun areas, as well as start new methods of expenditures and controlling cost. They will also take on budget updates and scheduling to the CEO and managers in charge of conducting direct oversight of the entire process.
Anticipated Challenges
In the entire process of choosing a different accounting firm, some challenges will likely be experienced during the selection of an accounting firm that is viable. The process will thus be time-consuming and in-depth. But, through a thorough research and implementation of controls of the firm, the challenges likely to be experienced include:
- a) Standards and Ethics
All the applicants may show or follow the same codes of standards and ethics discussed above. Nonetheless, we will collaborate with the applicants to make sure the standards of operation are based on our requirements. Those who will conform and adhere to the set standards will be chosen while eliminating those who will not.
- b) Confidentiality agreement
The firms are trusted with the ownership of the company’s confidential financial data and assets, which can harm our organization if accessed by competitors and the public. As a result, the outgoing and incoming firms will enter a compulsory nondisclosure agreement to make sure that all classified data remain trade secrets with any form of disclosure leading to prosecution.
- c) The period need for the transition
The process of transition is likely to require a lot of resources and time to complete. Missteps and mistakes cannot be afforded in the process of turnover as these can lead to the loss of access to proprietary financial and management data by unwanted parties. A completion timeline is thus necessary to ensure that everything remains on track and to meet expected deadlines.