Michaela Madsen

Wendy Gunn

Ethics E-portfolio Assignment

23 February 2020

Ethics are tools every individual is capable of being equipped with. Personal

ethics, however, are developed differently in each person as various factors can impact

ethical progress and understanding. From having a religious background to how and

where one grows up, ethical practices are often viewed at different levels of importance;

thus causing a difference in the maturity of one's personal ethics in comparison to

another. Fraudulent activity, however, does occur and needs to be addressed because

of its strong connection to personal ethics, or the lack thereof.

Ethics are clearly stated and enforced in the world we live in, no matter what

division of work you do. Personal ethics can, however, vary in relation to where you are,

what you do, and how you have personally developed as an individual. I believe that

having a religious background, especially, aids in the understanding and application of

ethics in one's daily life. Growing up religious positions individuals in an environment of

focus, not only on worldly progression but on spiritual progression as well. Because of

this outlook and focus, these people tend to possess a greater awareness of personal

behavior and how their actions affect the world around them. From an early age,

children are taught the difference between right and wrong, and what the accompanying

consequences are. They can understand and practice the difference between not

stealing an item because it's wrong, and simply stealing that item because they want it.
Both situations leave the child with the relating consequence, but one teaches a child to

keep strong moral beliefs, leading to stronger personal ethics. This will help in situations

where the right and wrong choice isn't clear or can be negatively rationalized.

This leads to the discussion of issues found in financial reporting. Personal ethics

will always influence our actions. In financial reporting, an individual is trusted with the

reporting of money and accounts in a company. If that individual has grown up with,

utilized, and currently strives for high personal standards and ethics, the temptation to

shift and disfigure the accounts and balances of a company would be presumably lower.

If that individual is, however, accustomed to the idea that ethics are simply suggestions

and not boundaries on acceptable behavior, the discovery of internal manipulation in a

company could be very high. As stated in this module, there is a fraud triangle made up

of motive, rationalization, and opportunity. Having strong personal ethics should help an

individual catch themselves at one of these points of the triangle before completing it. If

one can, however, reach all three points and proceed further without the endorsement

of personal ethics, they may find themselves caught in a spiral of events leading to an

unhappy life. While fraudulent activity can be planned in advance with full awareness of

what is at stake, many people may find themselves approached by their superior with a

task to rearrange a few parts of the financial reporting. They may do it once but then

find themselves, months later, caught up in extreme fraudulent activity that could have

been avoided if they would have said no to the request, despite the position of the one

behind the scheme. It is always better to stand up for personal ethics than adhere to the

ethics of others.
 Fraud can be characterized as being the result of a lack of good personal

standards and ethics. As humans, there is a requirement for sturdy foundational ethics

to build upon because of the existing ease of falling into temptation when a greater

opportunity is falsely advertised. Because of personal background and personality,

understanding and practices of ethics can and will vary, but at the end of the day, there

is always a choice and it is the responsibility of the individual to make it.