Lesson 57 - Advanced Accounting Course

Lesson 57: Whistleblower Protection and Ethical Accounting Standards

🧠 What Is a Whistleblower?

A whistleblower is someone who reports illegal, unethical, or fraudulent activity within an organization.

📢 Example: An accountant who exposes a company for cooking the books or hiding liabilities.

Whistleblowers help protect the public, investors, and the integrity of financial systems.

⚖️ What Is Whistleblower Protection?

Whistleblower protection refers to laws and policies that protect people who report wrongdoing from:

• 🚫 Retaliation (e.g., being fired or demoted)
  
  

• 🔇 Harassment or threats
  
  

• 🧾 Legal consequences for speaking out
  
  

✅ The goal: Make people feel safe to report fraud, corruption, or violations of accounting laws.

🛡️ Key Whistleblower Protection Laws (U.S. and Global)

🧾 Real-Life Example

Case: A whistleblower at Enron exposed massive accounting fraud.
Result: Enron collapsed, top executives went to jail, and SOX was passed to prevent similar events.

📚 Lesson: Whistleblowers may risk a lot—but they can prevent large-scale fraud and protect the public.

🧱 Ethical Standards in Accounting

Ethical accounting means following rules, integrity, and transparency in all financial practices.
It’s not just about being “legal”—it’s about doing what’s right.

🧭 5 Core Ethical Principles in Accounting (from IFAC)

🔍 Why Ethics Matter in Accounting 

📣 How Companies Can Support Whistleblowing 

✅ Summary