Any suggestions in writing an argumentative paper on Accounting Fraud and the Kind of Ethics Problems it
Perhaps, any suggestions on adding a thesis and introduction.
Gregory Mallette should steer clear of making an investment off his financial assets into the Bay Port Trust Bank of Danville because he would be making his decision based on inside information obtained from his client, an inside source to the highly classified merger (Beauchamp, 2004).
Gregory Mallette should abstain from as well as separate himself from fabricating the investment of his IRA into the Bay Port Trust Bank of Danville. It is illegal to trade stock on non-public, financially useful information that has been obtained by a breach of fiduciary duty (Beauchamp, 2004). He is faced with the dilemma of deciding if he has a fiduciary duty to Mr. Sales based on the nonpublic information obtained and the Professional Code of Ethics (Beauchamp, 2004).
In the case of CEO Gregory Mallette, I believe he should deny oneself from making the investment of his IRA into the Bay Port Trust Bank of Danville because he would be violating the Code of Ethics set out for his profession by the American Institute of Certified Public Accountants. By acting upon the nonpublic information of the merger, Mallette would be dishonoring his Professional Code of Ethics which clearly state that the service and the public trust should not be subordinated to personal gain and/or advantage. He must make a choice among alternative actions in which the right choice is not clear. His ethical situation is one in which his choice of alternative actions could affect the well-being of other persons. Mr. Mallette's conflict is what he should do and what he wants to do. I believe that Mr. Mallette's decision will be the best decision that remains obligated to act in a way that will serve the public interest, honor, public trust, and demonstrate a commitment to professionalism (aicpa.org).
Gregory Mallette is required to make an ethical decision that requires commitment and desire to do the right thing regardless of the cost. His awareness to act consistently and apply moral convictions to daily behaviors along with his capability to collect and evaluate information, develop alternatives, and foresee potential consequences and risks. He should utilize good decisions both ethical and effective. Gregory Mallette's ethical decisions not only generates and sustains trust, but will demonstrate honor, trust, responsibility, fairness, and caring (Ethics).
Gregory Mallette's decision to not take advantage of the information leaked holds true to the moral argument of a choice which depends on whether or not it yields good consequences (aicpa.org). By acting upon the non-public information of the merger of the Bay Port Trust Bank, Mr. Mallette would be dishonoring his professional code of ethics which clearly state that the service and the public trust should not be demoralized for personal gain and or advantage. The information of the merger is not to be released to the public market for at six months which implies that the public is oblivious to the stock value of the Bay Port Trust Bank which will gravely surge as a result of its recent merger (Beauchamp, 2004).
If Mr. Mallette intend to pursue a part in intimate information and act as Mr. Sales has, he would be engaging in insider trading acts which is regarded as criminal by the Securities and Exchange Commission (Beauchamp, 2004). If Gregory Mallette, make a choice to get caught up in an insider-trading case the damage may result in life-altering changes. The loss of his job, financial standing, incarceration, fines, restitution as well as public humility. What makes any given set of consequences good is that they cause the least possible amount of harm (Bernhardt, 2017). Which directly supports my argument on Gregory Mallette's decision not to use the merger information to his favored position of circumstance. Ethics in the imperative sense is a function of moral rules and principles and does not involve a situation-specific calculation of the consequences. Gregory Mallette's consequences will be good; therefore, his decision not to dupe the stakeholders is morally a good choice (Bernhardt, 2017).
As an accountant Gregory Mallette duty is to minimize harm not inflict it (aicpa.org). Gregory Mallette should think about balancing the public's need for information opposed to potential harm or discomfort for his desire to be greedy. Insider trading is the illegal trading of stock or securities based on confidential, financially useful information that has been embezzled or secured by a breach of fiduciary duty (Beauchamp, 2004). As a CPA, Mr. Mallette has a fiduciary duty to Mr. Sales just as Mr. Mallette has a fiduciary duty to his bank (Beauchamp, 2004). Certified Public Accountants are required to maintain the public's confidence, act in a way that will serve the public interest, honor public trust, and uphold the public's respect for the accounting profession (aicpa.org). Mr. Mallette would be operating against the interests of the public and would be violating their trust if he took advantage of this insider trading information and acted upon it for self-gain when the public has yet to be notified of the same opportunity to invest (Beauchamp, 2004).
Gregory Mallette would also be violating his professional code of ethics if he was to invest in the stock of the Bay Port Trust Bank of Danville after receiving confidential information that the bank's stock will drastically rise in six months when the news of the merger is made public (Beauchamp, 2004). He would be violating his professional obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate a commitment to the profession if he were to engage in insider trading (aicpa.org). The "public" of a Certified Public Account is identified as clients, credit grantors, governments, employers, investors, business and financial communities, and others who rely on the objectivity and integrity of members of the profession (aicpa.org).
Gregory Mallette's decision not to commit securities exchange fraud ultimately will allow him to deal with examining and deciding among all his possible choices theoretically true with ethical principles. His ethical decision would be imperative in order to distinguish as well as eradicate unethical options and select the best ethical alternative in which is the best possible choice (Ethics).
The collective well-being of the community of people and organizations that the accounting profession serves is identified as the public interest which professional accounting members are obligated to defend. All members are to remain committed and unwavering to honorable behavior, even at the sacrifice of personal advantage. If Gregory Mallette committed the crime of insider trading, he would not only be acting dishonorably by committing a crime, he would also be acting selfishly by seeking to increase his personal, financial gains at the risk of dishonoring the profession and harming the public's interests (aicpa.org).
Gregory Mallette should not only live the AIPCA Code of Ethics. He must also apply them to the situation and handle it accordingly. The AIPCA is a statement of abiding principles supported by additional explanations that address (aipca.org) changing accounting practices. It is not a set of rules, rather than a guide that sets standards that encourage all who represent many areas of practice, including business and industry, public practice, government, education and consulting. information management and technology assurance (aipca.org). Gregory Mallettes decision to not use the inside confidential information for his personal gain, provoked by his personal feelings with respect to threats to the organization in recourse to Mr. Sales bad choices.