U02d2 Stark 2 Legislation Review Essay Example | Topics and Well Written Essays - 500 words

U02d2 Stark 2 Legislation Review - Essay Example ns are not allowed to refer patients to any designated health service where the physician or the immediate family will be benefited with a financial relationship, unless statutory exception exists. The fundamental reason to develop Stark II was to ensure that over utilization of the health care items are not made, and to provide the patients with a choice of health care that they can use, rather than limiting them to a single provider, or health care organization (Janney, 2005). Also, this was developed to help ensure there is fair competition among the health care industry and there is no form of monopoly that is set in the market. The enactment of this law has led to a positive aspect for the industry as it allows the patients to only take the tests that are needed rather than needing to take tests which are not needed but only given as a financial interest of the doctors. Also the patient can receive accurate information when a third party is involved. The SOX law was introduced to help ensure there is a protection of the public and the stakeholders to ensure that there are no accounting errors or any form of fraudulent practices. There is a direct relation between the SOX and the Stark II, as both of these acts are basically to ensure that there is no form of inaccuracy or frauds in the accounting and is mainly intended to assist the general public to ensure that businesses and organizations do not work in a method where the general public is harmed in any manner (Sarbanes-Oxley Act, 2006). The two acts work in a manner where the doctors are required to maintain the internal accounting controls and also to ensure that the all accounting information is recorded accurately to control the ability of the parties to work in collusion with others (Pozgar, 2006). In conclusion, it is clear that compliance with the rules and regulations will lead to higher costs for the doctors and the hospitals, however these are developed to ensure that the end customers, i.e. the

Ethics Challenge and Communicating in Practice Essay

Ethics Challenge and Communicating in Practice - Essay Example A budgetary slack is a premeditated allowance for excess spending as overstated expenses or understated income (Stevens 1). Atkins and Granger make liberal use of this budget-making technique when making sales and expense projections. Budgetary slacks alleviate the effects of deviations if they occur. A more shifty use of the technique is to make it easier for managers to achieve targets, especially where sales performance results in bonuses and appraisals (Stevens 1).   In the case of Atkins and Granger, altered projections can result in less motivation to achieve more in their areas of responsibility as they can alter the figures to give the impression that they are performing beyond the projections. On another note, if the two staff can alter the financial figures at will, then there is a serious risk of the pair falsifying account figures to serve selfish interests (Stevens 1). The Institute of Management Accountants (IMA) requires its members behave ethically, and in ways that are responsible, honest, fair, and objective (IMA 1). IMA categorically opposes the use of confidential information for unethical and illegal motives. Overall, management accountants should cultivate restraint in situations that pose conflicting interests. IMA also requires that management accountants evade activities such as the budgetary slack that may jeopardize efficient execution of some activities. A budgetary slack presents ample opportunities for information asymmetry (Stevens 1).