What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPA's, including those working as controllers or chief financial officers for organizations.
When you hear the word "ethics," what is the first thing that comes to mind? Having to make the decision of doing what is right versus doing what is wrong. Some idealists say that decisions of ethics should not be conditional. However, that is not as simple as it may sound. What constitutes "right" to one person may be "wrong" to anther; what clearly distinguishes the line between right and wrong? What some may look at as being unethical does not necessarily make it illegal.
In the predicament of David Duncan, the lead audit partner at Arthur Anderson the Accounting Firm for Enron, underscores the penalty that accountants may face under professional accountability. Duncan had pleaded guilty to obstruction of justice when he was involved in the connection with document shredding.
The scandals have made some big implications on the profession as a whole. One being the decision from the Public Company Accounting Oversight Board (PCAOB), created by the Sarbanes-Oxley Act (SOA) of 2002, in April 2003 they voted to assume the responsibility for establishing auditing standards. The Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) previously played this role.
The PCAOB has the authorization to provide rules governing the following areas; ethics, independence, and quality control for any registered accounting firm...
... middle of paper ...
...e CPA Journal (2006). Retrieved on 16 September 2006 .
Bernardi, Richard A., and LaCross, Catherine C. "Corporate Transparency: Code of Ethics Disclosure." The CPA Journal (2005). Retrieved on 16 September 2006 .
Romal, Jane B., and Hibschweiler, Arlene M. "Improving Professionals Ethics: Steps for Implementing Change." The CPA Journal (2004). Retrieved on 16 September 2006 .
Turner, Robert M. "Ethics and Professionalism: The CPA in Industry." The CPA Journal (1999). Retrieved on 18 September 2006 .
Verschoor, CMA, Curtis C. "Ethics: Do The Right Thing." Strategic Finance (2006). Retrieved on 18 September 2006 .
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Abstract. The article reviewed was A Fresh Look at Accounting Ethics. The abstract emphasizes that the laws and regulation will not restore the trust in the stock market. Only the ethical leadership of the accounting professionals can rebuild the trust of investors and the public (p. 47). Introduction. The author studied the professional ethics of the accounting profession. The researcher indicated that the accounting profession should be built on the integrity, trust, and commitment (p. 47). The Moral Judgement is fundamental in the professional recognition.... [tags: Ethics, Business ethics, Morality, Enron]
706 words (2 pages)
- Organizational Culture of the Accounting Profession Culture in an organization is created, embedded, evolved, and ultimately manipulated, and at the same time culture can constrain, stabilize, and provide structure and meaning to the members of the organization. An organization founder or leader creates the organization’s culture. Leadership is entangled with culture formation, evolution, transformation, and destruction (Schein, 2004). Organizational culture is an important topic for members of the accounting profession.... [tags: Accountant, Accountancy, Profession]
798 words (2.3 pages)
- Ethics is derived from the greek word ‘ethos’, which means character and the latin word ‘moras’, which means customs. Thus ethics is defined as the personal and professional behaviour with regards to the values, customs, behaviour, principles and morals of society (Senarante, 2011). Professional ethics can be defined as the personal and corporate standards of conduct that is carried out by members of a particular profession. For example, medicine, accounting and engineering. Professional ethics or business ethics cover larger areas than the law, and although an issue may not be illegal, it can be considered as an ethical issue (ATT Ethics, 2013).... [tags: Ethics, Business ethics, Accountant]
1556 words (4.4 pages)
- Ethics is derived from the Greek word ‘ethos’, which means character and the Latin word ‘moras’, which means customs. Thus ethics are defined as the personal and professional behaviour with regards to the values, customs, behaviour, principles and morals of society (Senarante, 2011). Professional ethics can be defined as the personal and corporate standards of conduct that is carried out by members of a particular profession. For example, medicine, accounting and engineering. Professional ethics or business ethics cover larger areas than the law, and although an issue may not be illegal, it can be considered as an ethical issue (ATT Ethics, 2013).... [tags: Ethics, Business ethics, Accountant]
1560 words (4.5 pages)
- Article #21 Abstract. The article reviewed was Determining Whether an Accounting Firm Is Ethical. The abstract emphasizes that the firm should maintain a high level of ethics. The ethical culture does not happen to occur on its own. It requires the firm to have a set of values, core policies, and principles to support the effective ethical behavior (p. 68). Introduction. The author studied the ethics code, effective communication, ethics program, and ethical leadership to determine the ethicalness of an accounting firm.... [tags: Ethics, Business ethics, Morality, Applied ethics]
1001 words (2.9 pages)
- Furthermore, ethical conflict often arises in the workplace and creates ethical dilemmas due to conflicts between personal interest and professional duties. Business professionals are required to balance the conflicting pressures of the corporate world with the need to act with integrity (ATT Ethics, 2013). This means they have to be truthful and honest in their professional duties and they have to benefit without exploiting others. They are challenged to remain professional by protecting the interests of the clients and the public, above considerations of self interest during ethical dilemmas (Duska, Duska & Ragatz, 2011).... [tags: Ethics, Morality, Business ethics, Philosophy]
716 words (2 pages)
- Introduction There has been an increasing call for the consideration of ethics as part of accounting education programme and management globally in recent years. Many professional bodies are requiring ethics coverage. We regularly see calls for more ethical behavior in business in the media. Businesses need to clean up its act, including the phases and concepts as concern for environment, concern for employees, stakeholder interest, and the need for people to take a position. The study of ethics does not provides a list of things which are right or which are wrong, rather it provide a framework for understanding and analysing the impact of a decision from an ethical perspective.... [tags: code of conduct]
1673 words (4.8 pages)
- New York State Accounting Code of Ethics Introduction The accounting system is constantly changing. During these changes, it is important for accountants to adhere to the high ethical standards that they have always lived by. Adhering to the high ethical standards is an accountant?s obligation to the public, the profession, and themselves. An accountant?s ethical conduct usually lies within four different areas. This includes competence, confidentiality, integrity, and objectivity. NYSSCPA.ORG states, ?Members also have a continuing responsibility to cooperate with each other to improve the art of accounting, maintain the public?s confidence, and carry out the professions special responsib... [tags: Business Ethics]
778 words (2.2 pages)
- Ethics and Accounting What's ethics got to do with accounting. Everything. Believe me, everything. When the word ethics is mentioned, what readily comes to mind is the question of deciding between doing what is right and doing what is wrong. But doing what is right versus doing what is wrong within what context. The idealist will say that decisions of ethics should not be conditional. But it is not as simple as it sounds, for what constitutes "right" to one person, may be "wrong" to another person.... [tags: Finance Business Accountant Accountancy]
1220 words (3.5 pages)
- Accounting Ethics When examining the effect of open marketing on the profession of accounting it is important to view it from three perspectives: the client's, the profession's, and society's. Additionally, two key areas that are affected by marketing must be addressed, these are concerning competition, and ethical implications. Marketing in public accounting is here to stay therefore making an argument against its existence would be fruitless; however, in order to achieve maximum benefit to the firm, the client, and s ociety, more stringent guidelines must be implemented at the firm level.... [tags: essays papers]
1863 words (5.3 pages)