Although it may seem that unethical practices in the business world are more prevalent in recent years, they have existed in one way or another throughout history. The business structures or sales methods may look different from generation to generation, but there will be people who still use corrupt methods and take advantage of others, and for that reason organizations and consumers must diligently avoid becoming a victim or perpetrator of unethical practices.
In this Assignment, you will explain how a business can avoid unethical and deceptive financial reporting practices, as well as explain the company’s financial and management goals.
Medi Supply is a small but growing company that sells medical devices to hospitals in the local area. The company wants to expand their distribution regionally and hopefully nationally with their innovative devices. They are looking for investors as well as seeking out potential banks to borrow funds for expansion. These investors require standardized financial statements and are very hesitant to get involved with any companies before ensuring their adherence to ethical business and financial practices, in order to avoid tarnishing their reputation.
XYZ Logo Tim Lewis The owner of Medi Supply has hired XYZ Corporation to provide consulting services to help them sort through their financial data, build their financial statements to display to potential investors, and help them ensure they are on track with their goals and are avoiding any potential risks. You have been assigned to this project by your manager, Tim Lewis. Tim asks you to compile the results of your review into a series of reports, with detailed financial statements included.
Note: This week, you will complete and submit your business report on Management Goals and Financial Ethics for Medi-Supply company. In Week 2, you will complete a set of detailed financial statements and a second business report for the company.
Explain what types of financial and management goals Medi-Supply might have as the company moves forward to look for investors. (75–150 words, or 1–2 paragraphs)
Explain how Medi-Supply can avoid unethical practices in its financial reporting methods.
Be sure to provide information on handling material non-public information correctly, developing an internal process for reporting unethical activities, reporting revenue appropriately, showing accurate debt with balance sheets that are balanced, and avoiding hidden reserves.
Additionally, describe at least two other unethical financial reporting methods that could impact customers or shareholders. (225–300 words, or 3–4 paragraphs)
Note: For each prompt, be sure to reference at least one scholarly source to support your answer.
