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Leah Harwell
Wendy Gunn
ACCT 2010-402
September 29, 2015
Personal Ethics and Financial Reporting: My Personal Ethics and
How Personal Ethics Relate to Financial Reporting
Harrison, Horngren, & ThomasFinancial Accounting 10th Edition p 24 defines ethics as:
Standards of right and wrong that transcend economic and legal boundaries.
Ethical standards deal with the way we treat others and restrain our own actions
because of the desires, expectations, or rights of others, or because of our
obligations to them.
Personal ethics are molded through our educational, familial, financial, and religious
backgrounds. My personal ethics are defined by my strict religious and Southern upbringing
where it was instilled in me to serve my large family and others as I would myself. I was raised
to respect my elders; to respect and fear authority, as well as understand the repercussions for not
upholding these standards. This rearing, along with innate empathy and a deep sense of right and
wrong enable me to see situations from different viewpoints which allows me to select the best
course of action for the common good. Since I began working in my teens, I have always
handled cash, credit cards, financial reports, and individuals personal information such as Social
Security Numbers and/or medical records. It has never been an option in my mind to do anything
with these monies or this information other than their intended use as my integrity and personal
freedom are worth more than any monetary gain.

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77% of people who commit occupational fraud are one time offenders who have worked
for their employers for many years. Over time they may experience a decrease in morale, or a
financial crisis such as a death in the family or medical expenses, that they use to rationalize their
theft as they feel entitled to this money or item.
The cost of defrauding a company or cooking the books cannot be calculated only by
the sum of the amount misappropriated or records falsified. The loss of interest on the monies,
and the ability to reinvest in the business most also be calculated, as well as the potential for
layoffs of employees or even closure of the business.
In pursuit of my degree in Business, I completed an assignment in which I interviewed an
individual in the field of Accounting. Over the course of our conversation it was revealed to me
that she was asked in various instances do things that were either unethical, or illegal. When I
asked what she did, she informed me that she informed her supervisor that she could not
complete these tasks because they were unethical or illegal. In some instances it was an honest
misunderstanding as to what was permissible, in others it was a request to commit fraud. I was so
impressed with her ability to stand up to an authority figure at the age of 18 and refuse to
perform these task. I have to admit that if the same had happened to me at that age, I dont know
if I would have been able to be as brave. With the experience I have now I can whole heartedly
reject any proposal to fraud any company, even at my employers behest.
In summary, personal ethics are integral when preparing financial documents as the
livelihoods of many and the companys success rely on accurate, and honest accounting.