Causes of Accounting Scandals Essay

The write up entities and accountants of the world have defined several(prenominal) standards and honourable guidelines that need to be and must be followed by the accountants so that things argon not misrepresented and no wrong cultivation is provided to the investors. The accounting information generated by any company is gener everyy used by external entities and stakeholders as well and hence it is crucial to maintain and define nigh standards and practices that serve the purpose and be in the best of interest of all in all the stakeholders of any organization. However, despite of the development and establishment of such specific standards and regulations, thither be several fraudulent activities that take place and in that respect are several accounting scandals that come into the picture from time to time.There are several factors that go past to such accounting scandals despite of the presence of the h geniusst guidelines and standards. The scandals are shown to oc cur because of the unethical behavior o f the employees and one major factor that may lead to the unethical behavior of the employees is the corporal culture developed and used in an organization. Every company adopts and industrial plant on a specific type of culture and the culture should endlessly be such that is facilitates the overall learning and development of the employees. But at times, due to some gaps in the expectations and the culture actually defined, the employees start adopting damaging and fraudulent measures, thus leading to scandals.Miscommunication can also be a major reason for the observed scandal in several cases. It is come-at-able that certain guidelines or practices are mis-communicated to the people. At times, it happens to be that the person obligated for giving the information misses out or omits some information all together. And hence, the accounting scandals tend to occur not because of the deliberate effort of some employee or a bunch of emplo yees but mainly because they were not assailable of certain practices or standards.The neglect of appropriate management and guidance in an organization is also an important factor that contributes towards the development of differentaccounting scandals. Irrespective of the roles and responsibilities of the employees, the management al slipway needs to keep a interference on the things that is happening and maintain a way of guiding and managing the employees. In conditions where the management fails to do so, there are certain differences that occur in the set guidelines and actual practices, which lead to fraudulent activities.Thus, there are several factors that can be responsible for the accounting scandals that have occurred in the away and will keep occurring in the accounting world. In addition to these factors, there are also certain individual factors such as lack of professionalism, lack of knowledge, financial benefit or gain that can lead to scandals. And hence it is a mandate for every company to develop ways to monitor and avoid such unwanted and undesired situations.Referencehttp//classof1.com/homework-help/accounting-homework-help/