Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 18

Why is it important for the U.S. government to be able to bring charges of illegal payments to foreign government officials and intermediaries against non-U.S. companies that do business in the U.S.?

Step 1 of 3

Accounting:

In simple words, accounting is defined as a process to record, classifying, and analyzing the financial information of an organization. Accounting requires a specific knowledge because it is not a single process as it includes many sub-processes under it. 

According to the AICPA Code of Professional Conduct, an accountant should use his professional knowledge and should be responsible for moral judgment in all his activities done in the course of action.

Accounting standard:

This is a set of basic rules and principles set by the Financial Accounting and Standard Board (FASB). These rules help the manager in managing accounts properly. It increases the transparency of accounts. It helps in fair representation of accounts.