123 School Work

Fiduciary Relationships between Accountants and their Corporate Officers

• This is a preview of the essay.
  To view the full text you must login!
  
  For a business to be successful, everyone in the company must work together as a team. And as a team, everyone must be able to trust and rely on one another to accomplish goals.
       When it comes to accountants and their corporate officers, the fiduciary relationship is probably one area that needs to be very trustworthy. A fiduciary relationship is the legal relation that exists when one person justifiably places reliance on another whose aid or protection is sought in some matter. One basis for every relationship in business is the fact that all officers must be able to trust the accountants and the accountants must be able to trust the officers.
       It may not be possible to see what is happening while everyone is working, but one thing that holds true for a business is that all decisions must be ethical, especially between accountants and their corporate officers.
       One big problem that occurs in businesses is fraud, and two of the jobs that people look at when they hear fraud are accountants and corporate officers. In the past decade, many multi-million dollar companies have gone under because of the fact that someone was changing numbers in the books that have lead to bankruptcy in most of these companies. The risk of fraud can be reduced through a combination of prevention, deterrence, and detection measurement that is often difficult to detect, however, because it frequently involves concealment through falsification of documents or collusion. Three keys to preventing fraud from happening in a business are creating and maintaining a culture of honesty and high ethics, evaluate the risks of fraud, and implement steps to mitigate them, and develop an appropriate oversight process...