Review Accounting EthicsUnethical or wrongful behavior in accounting has drawn the publics attention in the past few decades, in all forms of businesses. The evidence to this is seen in the increased number of accounting ethical breaches of different businesses across the world. Several transformations in the business setting have occurred such as the corruption tendency and immoral conducts. Wrongful accounting behavior is integrated as an outcome. In this case, the government has been compelled to implement and increase inspect actions, as well as, regulations of business, most particularly after the WorldCom, Tyco, Enron, and other scandals that are unethical (Taylor, 2009). Consequently, the Sarbanes-Oxley Act was passed by the government in 2002, and it gave regulatory obligations for appropriate precision in assurance, business action, and accountability of just accounting behavior by public and accounting companies. The number of ethical codes of conduct that have been set within organizations has increased tremendously.Regulatory environment and current business is conducive to ethical behavior because some firms and managers think and feel that they can get off with it. The unexpected fall of the Enron Company led to a lot of questions on the accounting standards of America. There was increased demand for strict regulation, increased accountability, and demand of justice to unethical behavior. Evidently, in such a case, the people responsible should have been reprimanded. For ethical accounting principles and standards to apply, it should be shown that the principles are intrinsically honest and ethically accountable organizations (Al-Moataz, 2008). A sufficient debate of what business and accounting ethics are should be given before investigating why the circumstance does not comply with the principles. Also, the role of the ethical standards should be described with business content. New preventive actions for unethical behavior must also been investigated (SOX). The role of the present societal philosophical mood and philosophical trends should be examined to look into the attitudes of people who are responsible for such acts that society seeks to slam as society sees the business as a whole (Al-Moataz, 2008).One of the most memorable scandals in the history of America on unethical accounting behavior is that of Enron Company. The scandal represents unethical behavior and extreme fraud for the business world. The scandal raised the concern of managing risk, compliance issues and ethics on a broader level (Taylor, 2009). Arthur Anderson, the companys editor then was charged with creating partnerships off the records or books to conceal the companys debt burden, and this increased the capital of executives and destroyed the important official documents and violating the employees trust. The entire loss suffered by investors was about 64.2 billion US dollars in the period between August 2000 and December 2001 (Taylor, 2009). This was when the shares of Enron Company were listed from the exchange.The company started its operations back in 1985 with the major functional areas on gas, electricity, paper productions, and communication. The company went bankrupt in 2001. In 1995, the companys revenue were 9 billion US dollars while, in 2000, the revenues had gone down to 1 billion US dollars. These periods represented the time when the company gained maximum profits from its operations (Taylor, 2009). In 2001 December, it was revealed that the companys financial statements had been prepared falsely, and, therefore, misrepresented to boost revenues and profits of the company. The image of the firm was destroyed before investors mostly for two apprehensions. First, top management showed their carelessness and unawareness concerning profits. Secondly, the management made up the operations, an action that involved manipulation of the official documents. The managers and executives at fault for manipulating the official accounts and documents to reflect wrong figures as profit were accused of this crime, although the top management had instructed them to do so.The fall of Enron was as a result of unethical accounting practices that were discovered in 2001. If the top management had established an appropriate ethical environment, the unethical practices and fall of the company could not have occurred. These range from proper management controls to a code of ethics to ensure that organizational members act as per the standards set by the company (Albrecht & Searcy, 2002). Management controls are the tools that are focused on eliciting behavior that attains the organizational strategic goals including performance measures, performance-based incentives and remuneration, budgets, and standard operating procedures. It does not mean that Enron did not have management controls. The main pillars of the companys management control systems were the code of ethics, risk assessment and control group, and the performance review of the company. How these were managed, however, was what led to the collapse of the company because of unethical behavior (Albrecht &Searcy, 2002). Its collapse left the hopes of 21, 000 workers wiped out or else were in doubt. The companys mutual funds and other stock holdings declined by a high proportion leading to the tarnishing of the companys standing in the industry. The Treasury market was roiled, and there were big losses for Enrons investors.As a CFO, there are a number of recommendations that could have prevented the ethical breach and which can be implemented in the future to ensure that organizations do not violate the ethical principles or standards of business and accounting. One is the provision of education to managers in order to raise awareness of the significance of maintain developmental honesty capability and process as a tactical management tool (Verschoor, 2002). The education should also cover accountability in order to develop integrity in judgment through balancing competencies of ethics and management. This is important as the management will understand the consequences of behaving ethically and unethically. The scope of managerial accountability should be broad enough to entail system reliability capacity development. If there were transparent social, environmental, and economic accounting systems in place, then Enron could not have collapsed. These systems could be implemented in the future in organizations through the involvement of all organizational members to ensure ethical practices and strict punishment for unethical behavior. In addition, the managerial fiduciary duties should have been broad enough to include the democratic involvement of stakeholders in corporate governance (Verschoor, 2002). When these are implemented in organizations, the organizational members will be ken as they will be watched by the organizations stakeholders.The neglect, value, and nature of integrity capacity by top managers, as well as, the unpleasant effects that the practices of the executives of Enron had on many stakeholders have been outlined and discussed. It is evident how the complexity of behavior and morals can be addressed by balancing ethics and management completing values to prevent such unethical practices. Recommendations have been suggested on how to improve the integrity of managers. These recommendations will reduce the possibility of occurrence of unethical behavior.ReferencesAlbrecht, W.S. & Searcy, D. (2002). Top 10 reasons why fraud is increasing in the U.S. 82(11):58-61.Verschoor, C. (2002). Were Enrons ethical missteps a major cause of its downfall? 83(8):22-28.