2. It can be said that the ethical behavior of the accountants play a big part in the over plan of the budgets. There are instances that the accountants of some companies increased the expenses or the incomes in the budgets for specific reason. It is done in order to manipulate the financial position of the company as this act impacts the financial reports of any organization. On the other hand, there can be some hidden unethical benefits for the higher management of any organization by doing so; and this is the reason for which over plan of budgets is done as a result of an unethical agreement between the higher management and the accountants of the companies (Zatta 2016).
Libby, T. and Lindsay, R.M., 2010. Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research, 21(1), pp.56-75.
Zatta, D., 2016. Implementation of Revenue Management in the Process Industry in North America and Europe. In Revenue Management in Manufacturing (pp. 43-57). Springer International Publishing.