Such accounting is accounting from a purely realistic and numerical perspective, having nothing to do with what those numbers would signify in the context of life within the larger society. All accountants must swear by a strict code of ethics, yet auditors have a unique experience which places them in an even more sensitive position, calling for even more attention to ethical accounting behavior. Auditors have to deal with laboriously

However, some of the most difficult ethical issues involve speculative homebuyers who did not misrepresent their financial qualifications but who understood enough about the housing market and the direct connection between wide-scale mortgage fraud and its effect on artificial real estate appreciation but chose to profit by "flipping" homes nevertheless. The actual harm caused by any single person in that fashion is likely impossible to measure; on the other hand, such

.." And "The probability that my peers would undertake the same action is...." It is the difference in the responses given to these two questions, as captured on a seven point Likert scale, that is the measure of the social desirability response bias. (Tyson: 1992; Cohen et al.: 1995, 1996, 2001). Many studies have been done on the role and correlation between moral development and ethical decision making as it applies

Education on ethics must be wider compared to "moral development" in that it must tackle the broader consideration of a wide-ranging vocation, and constricted in that it must tackle problems particularly to the accounting vocation. (Research on Accounting Ethics) Definite duties of the accounting profession are put forth in the different code of ethics circulated by important establishments like the AICPA. The AICPA's foremost rule of professional conduct declares: In

The expectations gap occurs because many investors and policy makers expect auditors to detect all fraud, and if they do not, the auditors are presumed to be at fault." (Apostolou and Crumbley, 2008) The specific requirements of auditors are included in SAS 99 AU 31 and IAS 240 and in summary includes the following requirements: (1) Considering a company's internal controls and procedures, and how these are actually implemented, when

Ethics and Regulatory Issues Related party transactions reported on by Arthur Andersen & Co. Flaw in the accounting firm's logic Checklist for special projects performed by external auditors Checklist Proposed rules or laws to prevent similar occurrences Enron was one of the Wall Street's favorite blue chip stocks before an accounting scandal of the firm surfaced in 2000. The revelation that company has been misreporting its profits and losses during 1990s crashed the company's stock. The