Reporting Practices and Ethics

Reporting Practices and Ethics
Denise Sredensek
June 12, 2011
University of Phoenix
HCS 405
Sandra DiPietro

When the headlines read that SEC was to investigate Goldman Sachs for defrauding investors by misstating and omitting key facts, no one really knew what that problem was, until later.   For those who watched the trial, discovered the Securities and Exchange Commission had alleges that Goldman Sachs structured and marketed a synthetic (fake) collateralized debt obligation (CDO) that hinged on the performance of subprime (no so favorable) residential mortgage-backed securities (RMBS).   This appears to be bad enough, however, this was not the crime.   The crime was committed when Goldman Sachs failed too disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a position against the CDO (   If anyone knows what that means, please tell us all.   Fraudulent behavior, misconduct, waste, and abuse are characteristics of humanity.   Unfortunately, these traits are often found dwelling in areas where there is money.
The following is a report on financial management in health care.   The following topics will be included: generally accepted accounting principles, corporate compliance, ethics, and fraud.   We will also include a summary of the four elements of financial management as well as examples of ethical standard of conduct and financial reporting, with an explanation of each.
Generally Accepted Accounting Principles (GAAP), provide guidelines for a variety of business practices to be objective and realistic regarding their overall financial performance report.   GAAP places a limit on CEO’s and creative accounting.   It is important to understand the definitions of business, even to the smallest degree.   The challenge is what is accurate, objective, and fair financial reporting in one individual’s eyes may not...