Relevance Of Forensic Accounting Detection - Myassignmenthelp.Com

Question: Discuss about the Relevance Of Forensic Accounting Detection. Answer: Introduction A magnificent corporate disgraces as well as bankrupt in the past two to three decades are acting as a very powerful reminder of risks; those are apparently associated with the ownership of different business organization. Values and ethics are the centralized functions and operations of any business organization those are helpful for maximizing the well being of the stakeholders associated to the enterprises (Brooke A. Masters , 2018). This report depicts the role of the moral agents in a business organization to gain success throughout. The agents of all business organizations are responsible for proper decision making. However, both positive and negative consequences might occur due to these ethical dimensions (worldcom-fraud., 2018). MCI Inc. a well-known American telecommunication corporation, currently named as WorldCom is nominated for developing this report. Different ethical theories considering its application in relation with the duties of the moral agents are also elabora ted in this report. These ethical consequences of WorldCom (MCI Inc.) revealed that the accounting department of the company was negatively affected. According to the audit report, the company has discovered that $3.3 Billion of profit amount was inaccurately recorded on the books started from 1999 up to quarter of 2002 (Corporatefraud., 2018). The financial statement of the company revised and get to know that indirectly the CEO of WorldCom was responsible for this issues occurred. In order to minimize these errors moral and ethical theories are required to be applied by the top management of the business organization. Discussion of ethical theories Discussion of ethical theories in relation to the characters of the moral agents The company executives are referred to as the moral agents for any business organization those are responsible to make effective decision making for the business organization. In order to run the business successfully for maximizing the well of WorldCom (MCI Inc.) the application of ethical theories are very much important (Lins, Servaes Tamayo, 2017). Four different types of ethical theories are there those are needed to be applied in the business organization for gaining measurable success. The Company head itself was charged in the year of 2004, for committing security fraud. Besides these some additional charges are also filed against the chief executive of the company. It has been defined that due to groupthink the executive had shown unethical behavior to others (Olukowade Balogun, 2015). Thus the executive failed to develop accurate decision making for their organization. The four different types of ethical theories associated to this particular case are as follows: Consequentialism: According to consequentialism different ethical components such as state of the affair, actions are associated to this ethical theory. This theory helps to judge, the actions going in the business organization. Through this theory the right and wrong actions could be analyzed accurately. Two different examples of consequentialism are hedonism and utilitarianism. Hedonism helps to detect the consequences those helps to avoid the financial and other risks at the same time the utilitarianism helps to judge the consequences of the greatest good and greatest numbers respectively (Wisner Brown, 2015). However, in the real field application of this particular ethical theory is quite difficult. In order to achieve accurate alignment for growing interest between the managers and the owners, consequentialism is very helpful. Again, in some of the situations, consequentialism could lead the decisions those are objectionable even if arguably goods consequences are there. Virtue ethics: Virtue ethics is referred to as a quest that helps to understand and live the life of a moral person. After analyzing the financial risks faced by WorldCom telecommunication it is found that, the CEO must have possessed moral characteristics. This is a character based approach which helps to assume and acquire the virtue, of the person through different level of practices (Avci, Schipani Seyhun, 2017). A moral as well as honorable character could be archived by the CEO of WorldCom, through practicing different best practices like honesty, brave, just, generous etc. It is found that with the help if these particular applications, people would be able to make right choices for the business organization whenever the company would face different ethical challenges. Natural law: Natural law is referred to as a legal as well as a moral theory which are logically independent. This theory is basically dependent upon the nature of the human. The actions of the CEO and other working employees are whether good or bad are also be analyzed with the help of Natural law. In order to actualizing the potential, this particular position suggests the working employees have the ability. Kantian Deontologism: Deontological ethics are referred to as a morality based ethical theory that helps different business organizations to take effective decision. It helps to build proper relationship between the duty and the morality of the employees who have been working in the business organization (Daigle, Morris Quarles, 2015). This particular theory is very much formalistic due to the conformity of the business actions based on certain rules and laws. Duties of the moral agents Business leaders are those who are not at all allowed to afford ethical challenges those might have been occurred by technical advances (Bhasin, 2015). In order to reduce the issues the moral agents are required to follow certain professional duties those are as follows: To develop the internal control and Information system management approaches Company must adopt accurate system for enabling both the lawful and ethical responsibilities To create a bridge for connecting the management and board To conjugate the companys employees with their job roles Ethical dimension of their duties In order to make effective decision for different business organizations it is necessary for the leaders to consider the ethical dimensions. For establishing balance between the demand and the ethical imperatives the dimensions those should be considered are as follows: Commitment Perspectives Relationship Integrity Application of the ethical theories Explanation of the two Bernards characters The convergent elements are apparently used by the Business heads and other employees as well for bringing stakeholders engagement to their hob role. Organizational culture of is referred to as another important thing that helps to offer proper values and ethical aspects to the consumers. Bernard John also named as Bernie Ebbers was born in the year of 1941, 27th August who is a famous businessman of Canada (Daigle, Morris Quarles, 2015). This person is the co founder of World Telecommunication Company. In the year of 2005, for false financial reporting the company has faced major fraud by its own Chief Executive Officer (CEO). He was convicted for both fraud and conspiracy as well in that year. The action taken by the CEO was considered as the worlds most highlighted corporate fraud till date. It was the biggest corporate bankrupt in the history of USA. Bernie Ebbers is still facing civil litigations along with the company that backed up of $400 million of personal loans (Robinson, 2015). This took place whenever Bank of America suggested for more collateral stock of price fall. Based this parson many other people are also there who, were found guilty for this organizational fraud. According to Australian computer society and Australian Society of Criminology it has been found that, different ethical rules are there those are needed to be followed by the management head of any business organizations. In order to avoid the cyber fraud each of the members associated to the companies are needed to follow the moral values and ethics (Eliezer Emmanuel, 2015). It is expected that if they do follow theses aspects then, all the issues would be completely minimized accordingly. From the preamble and general principle of ACS certain, different ethical rules are identified those should be adopted by the management head or CEO of the business organizations to reach the project success effectively. Cyber crime is a disciple that allows the CEO to recognize discovery, creation and accumulation as well (Umar, Samsudinb, Mohamedb, 2015). Day to day professional activities is needed to be maintained by the management head for improving the existing culture and environment of the business organization. Ethical considerations would help the company to build rules and responsibilities of the company head and CEO as well. Professional rules and responsibilities are the main features those are applicable for almost each employees including the CEO and other employees as well. However, varied roles are server based upon the requirement and objectives of the companies (Deo Cathy, 2016). For specifying the organizational situation accurately, everyday professional activities are required to be considered by the management head (corporatefraud, 2018). Moreover, it can be said that, the CEO of the WorldCom telecommunication Company should maintain both the ethical dimension and moral characteristics as well. From different analysis it has been defined that for organizational decision making ethics is an important thing to be considered. In most of the days individuals are found to make decisions for their business organization (Khdir, 2016). Different ethical mo dels and frameworks should be followed before developing proper decision for the business organizations. Different theories are identified in this report including the Consequentialism, virtue, natural law and Deontologism among which only the Deontologism theory should be used by the WorldCom Telecommunication Company. It is expected that, application of this particular theory would be helpful. Duties of the moral agents Seven different components are there those should be maintained by the management head before implementing any organizational decision. The duty of the moral agents differs based upon the business background of the business organization. The WorldCom telecommunication company has faced major fraud in terms of cyber attack and in order to resoles these kinds of issues certain code of ethical conducts should be considered include- responsibility, enthusiasm, equity, compassion, teamwork, self estimation and professional integrity. The following are the duties of the moral agents to be maintained: Responsibilities: In order to gain effective resultant from the business outcomes the CEO rather moral agent is needed to serve their allotted responsibilities. Enthusiasm: In the daily activities all the associates should exhibit drive and passion in the daily activities to achieve the business goal (Woolley, 2016). Thus, enthusiasm is a major character that each CEO of the businesses must follow. Professional integrity: Professional integrity and trustworthiness are the two different components that each of the organizational CEO and other business team members should follow accordingly. Self Estimation: Personality analysis is referred to as one of the most important things that each CEO should measure before final decision making. It is expected that with the help of self SWOT analysis, he would come to identify his strength and weaknesses too (Khdir, (2016). Considering the strength of the person he would get different opportunities in the coming future whereas; the weaknesses would lead towards threats. Therefore with the help of self estimation the CEO should discuss with others for accurate decision making. Compassion: Empathy and practicing care are the two other features those are helpful for providing genuine support to the consumers. It will also allow the organizational head to become more co coordinating in nature. Ethical dimension and consequences of the actions taken by the agents After analyzing the cyber fraud took place in WorldCom, it is found that different ethical dimensions and the consequences of the actions those have been taken by the moral agent rather CEO are there those are negatively affecting the business organization (Deo Cathy, 2016). Even, the financial background of the company would also be affected due to lack of moral and ethical considerations. The duty of the business leaders and the decision makers is to create accurate balance between the demand of the consumers and the other ethical necessity (Avci, Schipani Seyhun, 2017). As Bernie Ebbers found guilty for the cyber fraud in WorldCom the different consequences occurred are as follows: The CEO hides different details of operating expenses and also made unannounced changes in the business operation These lead towards self decision making rather than organizational decision making In order to resolve the issues of unethical approaches different ethical theories are applied in WorldCom Telecommunication Company. The former CEO of WorldCom telecommunication company should never be convicted of security frauds as the leading evidence against the CEO were masterminded around $11 Billion fraud. On the other hand Ebbers was charged with security frauds which was proven by the law and evidence and due to this reason file have been charged against him. Conclusion From the overall discussion it can be concluded that in order to resolve the financial risks that WorldCom (MCI Inc.) is constantly facing, moral values and ethical approaches are needed to be applied. It is expected that with the help of the moral and ethical values, Bernard Ebbers (Chief Executive Officer) could identify the ethical consequences. Different ethical theories are there and based upon the operation and functional details of the business organization proper ethical theory is required to be applied by the management head. Contrasting other customers involved with the enterprise, the owners are remaining claimant for the earnings. Besides the formal control many other controlling factors in terms of ethical theories and their applications are determined to be helpful for the operational success of any business organization. The managerial attitude of the CEO of the company comes only from the ethical and moral values. The set of moral obligations those are helpful for the success of the company, are identified in this report and elaborated accordingly. References Avci, S. B., Schipani, C. A., Seyhun, H. N. (2017). Do Independent Directors Curb Financial Fraud? 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