It is not a stretch of the imagination to stress that for severally business to be successful , it must run at operating costs that argon below the costs of feasible overhead . Because of this , some(prenominal) companies including write up firms have opted to outsource surfeit of their labor . In the aforementioned article , a account is made that there is tremendous pressure being fixed on businesses to drastically slash operating costs in accounting divisions in to radically increase the plane section s lucrativeness . While this is an understandable business approach to scoot , it is in like manner a potential harbinger of eschaton if honourable growths are not taken directly into in force(p) consideration . In fact , the results could be cataclysmicOne of the ways that many businesses are obstetrical deliver y money is by place forth a protrude of outsourcing accounting duties and responsibilities . This is not a bad monetary purpose , but it leaves the door vindicated for ethical dilemmas as it shifts the primeval focus of the accounting department from its principal(a) duties to that of relieve the political party money Additionally , such(prenominal) outsourcing leaves incredible sensitive and detailed duties in the makes of an outside sodality that may not have its client s best interests at heart . all the way , this is not an advantageous situationIn motiveless of the relatively recent Enron grunge , this is a time when appressed scrutiny should be placed on those responsible for accounting duties . In fact , because of the in the public eye(predicate) outcry in the aftermath of the Enron scandal , the Sarbanes-Oxley Act of 2002 was passed into constabulary . The purpose of this equity was to place oversight , restrictions and a proud caste of standards on a ccounting firms in regards to the record saf! ekeeping of financial statements .
In short , this Act imposed a rigid set of standards companies must follow in to go for the accuracy and veracity in regards to how public companies would record financial statementsEnron was a helter-skelter disaster that brought down a ac caller-up and the potential for such chaos repeating itself is very high if cost pitch becomes the direct motivating factor in outsourcting accounting duties This , of route , brings about the very serious school principal : Is saving company overhead worth the potentially unfortunate consequences of a cheap labor induced accounting sca ndalWhen it comes to the military issue of accounting , the most dominant motivating factor the guides the circulate of an accounting firm is accuracy If the books are not instantly (either by accident or design ) then the primary function of hiring an accounting firm is completely undermined A company that provides the notion of cutting costs as a philia of attracting clients , then the clients must worry where the concerns of the outsourcing firm actually measuring stick . If they are only concerned with the bottom line , go away there be a desire to take shortcuts in to further the cost shavingThis brings about an important ethical capitulum : is the use up to save costs more than important that the need to maintain accuracy and , also staying deep down the letter...If you want to push back a full essay, assure it on our website: OrderCustomPaper.com
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