Accounting Fraud in an Organization Research Paper

Accounting Fraud in an Organization - Research Paper Example Simply put, accounting is a field that involves financial operations which record information about the financial status of a company. Accounting, when it is moral and professional at the same time, provides a lucid financial picture of a company and enables the accountants to formulate well-versed decisions that aim at securing the profit of the company. The accounting system may be as simple as involving a simple register and may be as sophisticated as a computerized system that records all financial activities providing information about every monetary detail like a current business trend and future vision. Accounting deals with three types of information: operating information, financial accounting information and Managerial accounting information (MoneyInstructor, 2005). Operating information is the largest portion of accounting information. The company needs this information on a routine basis like employees’ salaries, a record of loans rendered, sales, inventory, and so on. Financial accounting information enables the managers, shareholders and the like to make well-informed decisions about their investment, shares, money taken or given as the loan, and etcetera. Managerial accounting information enables managers to make decisions about budget and formulate plans to supervise the financial activities. Businesses and organizations are sometimes very much under the pressure, due to market competition may be, to make them appear profitable to the investors and clientele in order to draw them. But they need to know that practicing counterfeit accounting activities to fulfill this purpose is not only unethical but also can bring disastrous consequences.