Accuracy in Financial Reporting

profit is a profit, right? Not always. While an organization’s financial statements should fully and transparently reflect the organization’s actual financial situation, sometimes they do not. Sometimes
there is intentional deception or fraud. Yet, even when an organization uses legal and accepted accounting practices, financial statements may fail to present risks or explain unusual costs, profits, or assumptions.
To prepare for this Discussion, think about a time in your professional experience when a decision was made based on inaccurate financial information or unethical behavior resulting in fraudulent financial information.
Describe the situation from either your professional experience or your research.
Explain the steps you would take to address unethical behavior and remedy the situation of utilizing the
inaccurate or fraudulent financial information you described and why you would take these steps.
Explain the steps that you, as a manager, might take to ensure that all financial information you review
accurately reflects the organization’s true financial situation and why this is important to prevent unethical
behavior and the use of inaccurate or fraudulent financial information.

Sample Solution