In order to move towards an Ethic of Accounting, one must start by defining the function and role of the accountant. This in turn depends to a great extent on the identity of the client or whatever party the Accountant owes his loyal agency to. The issue is one of cardinal importance, and it is perceived as such by the accountants themselves. Loeb for instance says that the client-identity issue is overriding importance now, and will become even more crucial in (...) the immediate years ahead. The question of what constitutes ethical behaviour on the part of the accountant will depend then upon the relation within which such ethical behaviour will have to be deployed.The main question raised in this paper will therefore be, is the accountant primarily engaged by one client (whether an individual or a corporation) to act as their agent, deal with their problems by loyally advancing their interests to the best of his professional competence, although within the limits imposed by law and morality? Or is the public sector to be considered the principal target of the accountant's resolute professionalism and unswerving loyalty? (shrink)

This study discusses how perceptions of ethics are formed by certified public accountants (CPAs). Theologians are used as a point of comparison. When considering CPA ethical dilemmas, both subject groups in this research project viewed confidentiality and independence as more important than recipient of responsibility and seriousness of breach. Neither group, however, was insensitive to any of the factors presented for its consideration. CPA reactions to ethical dilemmas were governed primarily by provisions of the CPA ethics code; conformity to that (...) code may well be evidence of higher stage moral reasoning. (shrink)

The authors empirically examine the nature and extent of ethical problems confronting senior level AICPA members (CPAs) and examine the effectiveness of partner actions and codes of ethics in reducing ethical problems. The results indicate that the most difficult ethical problems (frequency reported) were: client requests to alter tax returns and commit tax fraud, conflict of interest and independence, client requests to alter financial statements, personal-professional problems, and fee problems. Analysis of attitudes toward ethics in the accounting profession indicated that (...) (1) CPAs perceive that opportunities exist in the accounting profession to engage in unethical behavior, (2) CPAs, in general, do not believe that unethical behavior leads to success, and (3) when top management (partners) reprimand unethical behavior, the ethical problems perceived by CPAs seem to be reduced. (shrink)

The central question in Westra's search for an ethic of accounting concerns to whom the accountant owes loyal agency: to the client or to the public interest. The authors argue that the accountant's master has already been defined as the public interest. An ethic of accounting is identified through analysis of the accountant's master and through examination of the accountant's ethical obligations under the Code of Professional Conduct. Potential conflicts between professional and organizational loyalties are analyzed with respect to the (...) real-life problem used by Westra to support her argument. Finally, the implications of government employment of auditors are discussed. (shrink)

Ethics research in Accounting has not proceeded beyond the descriptive level while, at the same time, ethics is a vital part of accounting decisions to the point where professional codes of etherics are necessary. A theoretical model is offered using cognitive and contingency (field) theories to gain insight into how ethical considerations enter into accounting decisions. Propositions are generated so that the use of ethics in accounting decisions can be predicted.