Effect of Unethical Behavior Article Analysis (ACCOUNTING COURSEWORK) Assignment

Effect of Unethical Behavior Article Analysis (ACCOUNTING COURSEWORK) - Assignment Example Hence, enabling wise investments; this will not only benefit the individual firms but also augment the state’s economic stability. Accounting malpractices presently assume numerous forms that are evident both in the regime’s institutions and in individual corporations. For illustration, inaccurate financial records that result from an intentional manipulation by the responsible individuals (Bisoux, 2005). Since, they do have hidden intentions meant to benefit themselves via presenting false figures that would derail the key organizations’ auditing process. Primarily, these staffs encompass the accountants who are responsible in the daily handling of accounting books. The individuals usually manipulate figures to equal a false amount after colluding with fellow workers and have chopped some amount, hence trying to make a cover up. In some incidents, these malpractices may entail the top officials, but mostly evident amid the middle staffs (Bisoux, 2005). Additionally, the malpractices may entail misusing funds via channeling them in diverse directions to cater for expenses not intended for or inappropriate. For illustration, overspending especially in a venture where the undertakers or those pioneering team would benefit in some way. This deprives the firm the necessary financial resources meant for boosting its sustainability or expansion and instead starts encountering difficulties in its management (Bisoux, 2005). Consequently, this financial misappropriation will indirectly will feature in its accounting standings. This would be via meticulous study by potential investors who will notice the evident misappropriation and decline in investing in it. Since the inception of Sarbanes-Oxley Act of 2002, numerous organizations and even regimes have recorded an growth of their economic stability (Bisoux, 2005). This emanates from the accountability, which the act has instilled