Acc 557 Essay
May 5, 2013
Assignment 1: Review of Accounting Ethics
The New Zealand Institute of Chartered Accounts (NZICA) represents over 33,000 members in New Zealand and overseas. The organization audits private companies and public companies that are members of the organization (Graham, 1960). In October 2012, the organization was found to be practicing breaches of accounting with its members when an employee of the organization was found investing in different companies using client’s money. The loans were supposed to be short-term loans but it turned out they were not, this was discovered after complaints from clients.
1. Given the …show more content…
3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. In this case, the organization’s employees took advantage and started practicing breaches of ethics to the organization’s most esteemed clients who had total trust for the organization. Most employees embezzled client’s money and invested in other companies without the client’s knowledge. Russell Ibbotson, an