Question

Analyze any ethical issues related to financial reporting that may arise in your

organization. (600 to 800 words) " My organization is a hospital"

Answer 1

Proper financial reporting and analysis is key to the success and well being of a hospital or any organization. Ethics of an organization also comes to play for effective financial reporting. The following are major ethical issues related to financial reporting in hospital sector :

1. The main problem arise when there is no proper documentation which urges them to fake the financial statements by making estimates. Incorrect estimates can even rise to legal problems also. Faking thr financial statemnts is the greatest ethical concern of all time as it may affect the investors also.

2. Another major ethical concern in healthcare sector is utiliziation of hospital resources for their own benefit. For example, a nurse taking hospital resources to take care of a loved one. This may pose a damage to the financial reporting of hospital. This in other words, is stealing the resources of patient and thus, lead to improper care to the patients.  

3. Hiding apotential loss from thr authorities or investors can be a serious threat to the financial reporting sector. This may seem to be a very small or minor aspect but it not so. If a hospital stays honest about their loss, it can lead to loss of investors also.

4. Another concern is that if an executive of the hospital with much authority and power may use his power to manipulate the financial reporting. He may also stress the workers and pose a problem in financial reporting. Thus in case of healthcare sector, always the focus should be patient care amd not any executives.  

5. Another problem is lack of a proper reporting team and maintenance of communication which can allow timely financial reporting and avoidance of major ethical concerns. It also allows the workers to report any ethical or other concerns as and when required.