Deceitful Profession, Certified Public Accountants Would Most Capstone Project

PAGES
4
WORDS
1423
Cite

¶ … deceitful profession, certified public accountants would most certainly not be the first to come to mind. That is because CPAs are known and respected for their honesty. The profession goes out of its way to project that image, and there is a certain amount of truth to it. However, not all CPAs are squeaky clean and respected for their honesty. Some are quite dishonest and are putting a black mark on the image of the entire profession. There is one area where the CPA profession has fallen short of protecting the public interest. There is a general duty that accountants owe to their clients and the other persons who are affected by their actions. Two elements compose the general duty of performance: skill and care. Another element and responsibility is owed to clients and other persons, which is that accountants should observe a standard of ethical or social responsibility. One set of difficulties concerns ethics education's ability to instill the chosen values and to make them stick after the educational process is completed. Instruction in accounting ethics is directed at people whose character-or lack there-of-has largely been formed by the time the instruction occurs. Even those who are positively influenced by ethics instruction, moreover, may still behave irresponsibly if their careers or their livelihoods require them to act in their client's financial interest (Fulmer, 1987).

Recent pressure to include more ethics instruction in the accounting classroom has placed an emphasis on individuals who have a sense of moral responsibility. In accounting ethics education literature the benefits of teaching ethics have been greatly influenced by the following set of goals presented by Loeb (1988): a) Relate accounting education to moral issues; b) Recognize issues in accounting that have ethical implications; c) Develop "a sense of moral obligation" or responsibility; d) Develop the abilities needed to deal with ethical conflicts or dilemmas; e) Learn to deal with uncertainties of the accounting profession; f) "Set the stage for" a change in ethical behavior and g) Appreciate and understand the history and composition of all aspects of accounting ethics and their relationship to the general field of ethics (Metzger, 1992).

An...

...

. .which are more than simply a matter of what acts are forbidden, which are required, and which are permissible" (Whiteck, 1992). Emphasis on rules may quickly become training in how to get around the rules while remaining technically legal. While students must be acquainted with professional codes of conduct as part of their preparation for a career, most researchers on ethics do not consider such material to be sufficient ethical training. The remaining of this essay will focus on ethics violations of accounting rules:
102 -- Integrity and Objectivity -- Case of Mr. Allgyer

Mr. Allgyer, formerly of the firm Arthur Andersen LLP, was suspended for a period of two years by the AICPA and the Illinois Society of CPAs as a result of his consent on June 19, 2001 to the issuance of an Order Instituting Public Administrative Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Rule 102(e) of the Securities and Exchange Commission's Rules of Practice in connection with his performance of professional services for Waste Management, Inc. Without admitting or denying the findings, Mr. Allgyer was denied the privilege of appearing or practicing before the SEC with the right to apply for reinstatement after five years and was ordered to pay a civil monetary penalty of $50,000.

201 -- Professional Competence -- Case of Mr. Beck

Information came to the attention of the Ethics Charging Authority (comprised of the AICPA Professional Ethics Executive Committee and the Kentucky Society of CPAs Professional Ethics) alleging a disciplinary matter with respect to Mr. Beck's performance of professional services in connection with the audit of a commercial entity. After an investigation, Mr. Beck was charged with violating Rule 201 of the Codes of Professional Conduct. In consideration of the ECA forgoing any further proceedings in this matter, Mr. Beck agreed: To comply immediately with professional standards applicable to the professional services he performs, and to submit evidence of such compliance; To be suspended by the AICPA and the Kentucky Society of CPAs for a period of two years; To complete 40 hours of…

Sources Used in Documents:

References

Fulmer, W.E. And B.R. Cargile: 1987 Ethical Perceptions of Accounting Students: Does Exposure to a Code of Professional Ethics Help? Issues in Accounting Education 2, 207-219.

Loeb, S.E.: 1988, "Teaching Students Accounting Ethics: Some Crucial Issues', Issues in Accounting Education 3, 316-329.

Metzger, J.D.: 1992. "Business Law and the Regulatory Environment: Consepts and Cases 8th Edition. 1061.

McGee, R.W. 2000. "CPAs vs. The Public Interest." Dumont Institute, Ethic Information Center.


Cite this Document:

"Deceitful Profession Certified Public Accountants Would Most" (2012, February 13) Retrieved June 13, 2024, from
https://www.paperdue.com/essay/deceitful-profession-certified-public-accountants-114482

"Deceitful Profession Certified Public Accountants Would Most" 13 February 2012. Web.13 June. 2024. <
https://www.paperdue.com/essay/deceitful-profession-certified-public-accountants-114482>

"Deceitful Profession Certified Public Accountants Would Most", 13 February 2012, Accessed.13 June. 2024,
https://www.paperdue.com/essay/deceitful-profession-certified-public-accountants-114482

Related Documents

Another challenge facing the industry today is the important legal issues that surround the Sarbanes-Oxley Act (Koehn & Del Vecchio, 2004). One of these is the fact that the process of due diligence practiced by many companies is now taking much longer (Koehn & Del Vecchio, 2004). There is a higher degree of caution than was previously utilized and because of this many companies are discovering information that would have

It also publishes interpretations about certain rules. WHEN AN ACCOUNTANT FAILS The AICPA's Code of Professional Conduct is considered to be a binding agreement for every CPA in America. As with other professions most accountants are ethical and honest in their dealings with their clients, however every so often a problem arises that must be disciplined. This can happen in a purposeful attempt to be deceitful, or it can happen by an

Control environment: (i) Insistent accounting policies or practices. (ii) Demands from senior management to augment revenues and earnings (iii) Absence of involvement by the accounting or finance department in transactions or in the supervision of arrangements with distributors. (Practice Alert 98-3 Revenue Recognition Issues) Matters needing special consideration: (i) an alteration in the revenue recognition policy of the company. (ii) Sales terms do not meet the terms with the usual

Sarbanes Oxley Act of 2001
PAGES 29 WORDS 7885

Sarbanes-Oxley. The political pressure of the past several years following the dot.com bubble and the collapse of several major companies created a need for new securities legislation, which culminated last year in the Sarbanes-Oxley Investor Protection Act, which establishes new guidelines for the securities industry. Initially a Democratic brainchild, the act became favored by Republicans in the House when it was realized that such adjustments would be of great benefit to

Enron Was the Seventh Largest
PAGES 98 WORDS 27112

Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron Board

That was the year that significant changes were made in the Securities Act and the rules for bringing class action lawsuits were adjusted and modified. Because of those changes, it became more important from a litigation standpoint to ensure that conservatism was used in accounting valuation. Because there are empirical differences between the contracting and litigation perspectives, there have been many discussions regarding them in the past and that