Question

What is the relationship between ethics and accounting information systems such as QuickBooks? Do you think that QuickBook can be misused to assist in committing unethical acts? What are some specific examples of unethical acts ?

Answer 1

Accounting information systems such as Quickbooks to ethics is quite strong. This is due to the fact that several instances of unethical as well as fraudulent behavior can take place by misusing the provisions of different accounting information systems in general and Quickbook in particular.

Some specific examples of unethical acts are recording revenue in Quickbook even when the control of the goods has not been passed to the customers. As per accounting rules and regulations revenue should be recognized only when goods are shipped to customers and this means that control of the goods has now been passed by the seller to the buyer. In many instances companies ship goods to customers who have not ordered. Shipped goods will be recorded as revenue in the month or quarter in which the goods are shipped. As the customer had not ordered the goods will be returned and this return will be recorded in the next month or next quarter. Thus the accounting information system will record this as a sale in the current accounting period and this is an unethical act as it artificially inflates sales.