This study examines how the American Institute of Certified Professional Accountants (AICPA) uses character and concept words to communicate normative narratives to different internal audiences. Our analysis of 552 editorials published in the AICPA’s Journal of Accountancy during the 1916–1973 period illustrates how the AICPA communicated similar yet different normative narratives to firm partners and students. During this time period, the centrality of ethically infused words such as ethics, conduct, and independence not only varied across different time periods but also (...) across different target audiences. The findings draw attention to the importance of considering the audiences for ethical narratives as well as the ways that the intra-textual positioning of concepts and characters allow organizations to speak to slightly different audiences within the same communication medium. (shrink)

The effectiveness of professional sanctions against violations rests upon the severity of sanctions and detection of violations. Here we examine perceptions of professional violation detection in auditing where the professional standards may conflict with the interests of the auditor’s firm. Using a sample of future and experienced auditors, we test the relationship between professional violations and auditors’ perceptions of the likelihood that severely-sanctioned violations will be discovered (a) by the audit profession, and (b) by the auditor’s firm. In our study, (...) an auditor’s belief that professional bodies are likely to detect professionalviolations relates positively to auditor professionalism. However, we find beliefs that the audit firm will detect severely-sanctioned professional violations negatively affect auditor professionalism. In our study, the lowest level of professionalism occurs when auditors believe that their own audit firm, but not the audit profession, will detect a professional violation. We also find that auditors’ internalization of professional standards relates positively to auditor professionalism. Implications for future research and practice are discussed. (shrink)

What does it look like when an organization tentatively steps away from an exclusively rules-based regime and begins to attend to both rules and principles? What insights and guidance can ethicists and ethical theory offer? This paper is a case study of an organization that has initiated such a transition. The American Institute of Certified Public Accountants has begun a turn toward the promotion of ethical principles and best practices by adding a “conceptual framework” to its existing Code of Professional (...) Conduct. This conceptual framework calls upon its members to intentionally increase their awareness of significant threats to their compliance with its rules of conduct and to establish safeguards to offset or eliminate those threats. To this end, each member is required to regard every questionable situation, circumstance, transaction or relationship by attempting to view it through the eyes of an imagined reasonable third party. This paper examines this protocol theoretically and practically. First, we frame this analysis within the principles and ethical concepts that inform the professional ethics of accountants. Second, we critique the AICPA’s long-standing rules-based approach to its Code. Third, we examine the new conceptual framework with a view toward its potential for the promotion of a more principles-based approach to the professional ethics of the accounting profession. Fourth, we give attention to the notion of the “reasonable and informed third party,” which has been embedded in the new conceptual framework, and consider how two schools of thought—Adam Smith’s modernist “impartial spectator” concept and Emmanuel Lévinas’ postmodern phenomenology in regard to “the Other”—may offer theoretical support and clarity for this epistemic exercise. Finally, we point out several ways in which the AICPA’s commitment to its new conceptual framework could be strengthened and enhanced. (shrink)

This paper explores the practices of auditors in a non-Western cultural environment. Drawing on Alasdair MacIntyre’s virtue ethics framework and narrative interviews with twenty Tunisian auditors, we investigate how auditors reconcile their duty to independence with the expectations of a kinship economy. Additionally, we explore how institutions—such as professional oversight bodies—play into this reconciliation. We find that, although auditors may pursue a telos at odds with international auditing standards, the purpose that these auditors serve is congruent with their moral tradition. (...) That is, rather than positioning themselves as objective arbiters of financial reporting, these auditors position themselves as guardians of their auditees. While this revised position engenders conduct that may appear to violate their independence, our auditors’ practices are congruent with the virtues of justice, courage, and honesty, as they conceive of them in the context of a Tunisian moral tradition. This study makes two main contributions to the literature. First, we provide empirical evidence into the ways in which auditors redefine independence in the context of a kinship economy. Second, we demonstrate that, when auditing local firms, auditors apply a version of professionalism that emphasizes community-oriented care over objectivity. (shrink)

Values research generally confirms that personally held values influence an individual's decision processes and behavior. Yet this academic research often is limited to the individual or organizational level of analysis. This study utilizes social identity and personal values theories to search for the presence of superordinate identities emerging at the meso level from six different industries. The six selected industries—accounting, banking, construction, education, energy, and manufacturing—represent a mix of highly respected and disrespected industries, as well as industries that have an (...) ethical professional association and those that do not. Results provide evidence of meso‐level superordinate identities, distinguishing managers' personal value orientations from a generalized population, and across the six selected industries. Implications emanating from this research for the human resource practitioners and academic scholars are discussed. (shrink)

In this conceptual paper, we explore professional accountants’ identity formation and the roles played by various audiences in society, accounting associations, and accounting firms in shaping the identity of professional accountants. We integrate constructs from social identity theory and the sociology of professions literature with previous research on professional identity, image, and widely held stereotypes of accounting and accountants, to propose an integrated framework of professional accountants’ identity formation. Based on the framework developed, we propose directions for future research.

Our study contributes by providing new insights into the relationship between the individual levels of the antecedents and how the intention of whistleblowing is moderated by perceived organizational support, team norms, and perceived moral intensity. In this paper, we argue that the intention of both internal and external whistleblowing depends on the individual-level antecedents [attitudes toward whistleblowing, perceived behavioral control, independence commitment, personal responsibility for reporting, and personal cost of reporting ] and is moderated by POS, TNs, and PMI. The (...) findings confirm our predictions. Data were collected using an online survey on 256 Indonesian public accountants who worked in the audit firm affiliated with the Big 4 and non-Big 4. The results support the argument that all the antecedents of individual levels can improve the auditors’ intention to blow the whistle. The nature of the relationship is more complex than analysis by adding moderating variables using the Partial Least Squares-Structural Equation Modeling approach. We found that POS, TNs, and PMI can partially improve the relationship between the individual-level antecedents and whistleblowing intentions. These findings indicate that the POS, TNs, and PMI are a mechanism or that attribute is important in controlling behavior. (shrink)

The literature has long noted the ethical challenges related to auditors’ dual affiliations with both a profession and an organization that practices the profession. The notion of organizational/professional conflict, in particular, was introduced to capture the potential problems involved in this situation, such as when an auditor engages in behaviors aimed at pleasing the client rather than safeguarding the public interest. However, inconsistent findings leave open the debate about how auditors manage their dual affiliation and question the underlying mechanisms by (...) which auditors structure their identity and experience their work life. To advance understanding of this issue, this research investigates the relationships between auditors’ organizational identification, professional identification, and emotions at work, using a questionnaire survey of 126 French Big 4 auditors and a two-step split-sampling design. The results show that the two forms of identification have a different relationship with emotions: positive for organizational identification but ambivalent for professional identification. These findings contribute to our understanding of professionals’ work experiences in large organizations. (shrink)

This article uses bibliometric analysis to empirically examine research on business ethics published in a broad set of journals, focused over the period 1988-2007. We consider those journals with an emphasis on accounting. First, we determine the citation frequencies of documents to identify the core articles in accounting research with an ethics focus as well as the contributions of influential fields included in the research sphere of these journals. We also employ document co-citation analysis to analyze the scholarly communication patterns (...) that exist within the realm of the specified articles. Second, we utilize social network analysis tools to profile the centrality features of the co-citation network of these documents. (shrink)

Drawing on calls by researchers to examine corporate scandals involving potential conflicts of interest or compromise to professional independence involving the actuarial profession, this article outlines one such case. The consulting actuaries – to a large Australian listed company, James Hardie Industries Limited – found themselves advising two parties in a corporate restructuring where the interests of each were sometimes competing and the interests of the public appeared to be ignored. The James Hardie case is instructive in a number of (...) ways: first, it demonstrates the subtlety with which conflicts of interest or pressures on professional independence can arise; second, it demonstrates how important professional issues can be obfuscated by more obvious and pressing financial and strategic issues; and finally it demonstrates that adherence to professional codes of conduct and the ease with which professional ethics can be compromised when those codes are vague and transgressions are rarely actionable. The James Hardie case highlights structural issues in the employment of consulting actuaries which presents risks to the profession. It demonstrates that the combination of an aggressive corporate management with a strategic agenda reliant on consulting actuaries that have a vested interest in promoting and maintaining valuable relationships, both financially and professionally, results in ethical challenges. (shrink)

This paper reports the results of a survey with public accountants in Barbados on their intention to report a superior’s unethical behaviour. Specifically, it investigates to what extent perceived organisational support in audit organisations would moderate Barbadian public accountants’ intentions to blow the whistle internally and externally. Results indicate that internal whistle-blowing intentions are significantly influenced by all five individual antecedents, and the influence of the antecedents is intensified when the level of POS is high. However, further results indicate that (...) external whistle-blowing intentions are significantly influenced by only three individual-level antecedents viz. attitudes, perceived behavioural control and personal cost of reporting, and their influence is intensified when the level of POS is low. The results suggest that POS is an important mechanism for controlling behaviour. (shrink)