Read Proverbs 11:1 (Links to an external site.)
This week’s study is about accurate reporting practices in business. In the Old Testament era, weights and measures could be manipulated in the marketplace for financial gain. The ability for a seller of commodities to cheat by 10-15% would mean a substantial increase in income over a year’s time. The temptation to get creative with accounting procedures for financial gain in the modern world is very real.
The process for financial reporting requires that accurate numbers be recorded so that calculations of income, expense, and profit can be determined. Misrepresenting these numbers can affect everything from taxation to bonuses and profit sharing for employees. In the cases of a publicly held company, investors can be fooled into buying stock in a firm that is showing profits that do not really exist.
How do you feel integrity is important for accounting?
What examples can you think of in the news about fraudulent accounting?
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