Case Analysis of Business Ethics (Case Study Sample)
An analysis of the fraudulent actions of a senior accountant.
Business Ethics: Case Analysis
Intentional manipulation of a firm’s financial statements to generate false financial data is unethical and punishable by law. A firm or employee can commit this fraud by failing to record the firm’s actual expenses, misreporting liabilities and assets, or overstating revenues (Choi and Gipper 12). In this scenario, Harmony plans to intentionally overstate the firm’s sales revenues, which is wrong. This crime can damage the reputation of both the organization and Harmony in many ways.
Harmony can lose her job if auditors uncover her unethical practices. Besides losing her job, the bank might sue her, and she could be jailed if found guilty (Choi and Gipper 36). On the other hand, the bank can experience financial difficulties if it fails to meet the demands due to false financial information. The fraud can cause an increase in share prices, prompting investors to demand higher earnings per share. If this happens, the bank must comply with the demands, but this can be challenging. Investors may sue the bank, leading to costly legal tussles and loss of high-value investors. Besides the need for higher earnings per share price, tax authorities might impose higher taxes on the bank due to the perceived good financial health. Consequently, the bank could develop a bad image, leading to losses. Also, increased taxes and shareholder’s demands can cripple the business if the fraud is not noticed early and corrected.
Even though Harmony feels sorry
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