Verified Document

Ethics Issue Affecting Accountants In The United States Research Paper

Ethical Issues Affecting Accountants The need for ethical standards within the corporate accounting field is urgent, and this paper delves into ethical issues. Given the fact that rules can be bent and manipulated, this paper also points to potential ways in which ethics can become as important as rules.

While there has apparently been a "shift in the ethical behavior of management" -- which is related to the corruption and convictions of accountant-related individuals with Enron and Author Anderson -- the literature indicates that there are still ethical issues to be addressed within the industry (Bolt-Lee, et al., 2010, p. 38). Research presented in the peer-reviewed Journal of Accountancy shows that subsequent to the Enron and other scandals, there is a movement toward a "…more heightened state of ethical awareness" that is apparently due to "…the greater likelihood of punitive consequences" (Bolt-Lee, 38).

In the Bolt-Lee article, the authors allude to a pair of studies (by author Shane Premeaux) given to marketing managers -- that supervise accountants -- in order to gauge ethical attitudes. The first questionnaire was sent to 1,000 managers (with a 40% response rate) in 2003 after the Enron bankruptcy became news but prior to the prosecution of its accountants and other executives. The results showed that those 400 accountants and other business practitioners "…relied on a combination of 'act and rule utilitarian ethical philosophy'" (Bolt-Lee,...

The results revealed a "…change in philosophies," Bolt-Lee explains (39). The second questionnaire (using some of the exact same questions as the first survey) reflected a "greater respect for the law ad a belief that actions are moral when they are fair, just, and respect the rights of everyone" (Bolt-Lee, 39). It is critical to note however that the accountants and managers did not reverse field based on newly discovered ethical principles; indeed there was no shift in "moral thinking" but rather there was a sense that in order to avoid sanctions and show greater respect for the law, legal behavior must be followed.
Meanwhile in a peer-reviewed article in the Journal of Business Ethics the authors advocate for a move away from "rules-based" standards and instead a move toward "principles-based" standards. This is necessary because corporate managers and accountants have "…honed their skills at finding and using loopholes and technical exceptions to…

Sources used in this document:
Works Cited

Adams, Barbara L. (2010). Using Game-Based Learning to Raise the Ethical Awareness of Accounting Students. Business Education Innovation Journal, 2(2), 86-93.

Bolt-Lee, Cynthia E., and Moody, Janette. (2010). Highlights of Finance and Accounting Ethics

Research. Journal of Accountancy, 210(4), 38-41.

Spalding, Albert D., and Oddo, Alfonso. (2012). It's Time for Principles-Based Accounting
Cite this Document:
Copy Bibliography Citation

Related Documents

Hospital Ethics to Do or
Words: 5897 Length: 20 Document Type: Term Paper

The clinical trial team includes doctors, nurses, social workers, data entry technicians and other health care professionals (NWHRC 2005). They review a participant's health history and current medical intakes before the trial begins. They impart adequate information and instructions about the clinical trial, monitor each participant in the conduct of the trial and may contact the participant after the conduct of the trial. Clinical trials or researches may also be open-label,

External Auditing UK Modern Corporations
Words: 2960 Length: 8 Document Type: Essay

" This project is considered to be the first major update to the Smith Guidance. It was felt that the update was required to shore up some of the deficiencies in the Smith Guidance that have emerged since it was published. There were characteristics of the market that it was felt needed to be addressed, in particular the oligopolistic nature, which exposed the market to considerable uncertainty in the event

Establishing an NP-Led Day Treatment Facility in Bessemer Alabama
Words: 12948 Length: 47 Document Type: Multiple Chapters

Establishing an NP Led Wellness and Recovery Center for Deinstitutionalized Individuals Historically, nursing, and medicine professions have been loath to utilize tools commonly linked with mercenary aspects of business, such as market research and decision analysis. In the contemporary health care setting, however, consumers hold numerous options for care providers. The division of the market or market segmentation into different subgroups allows the determination of target markets and the buildup of

JC Penney: J.C. Penney Company, Inc. Is
Words: 1467 Length: 5 Document Type: Essay

JC Penney: J.C. Penney Company, Inc. is a holding firm with the main operating subsidiary known as J.C Corporation, Inc. The company sells accessories, family apparel and footwear, beauty products, home furnishings, and fine and fashion jewelry in its department stores in America and Puerto Rico. Since its inception, this company has grown to become a major retailer that operates approximately 1,106 department stores by the beginning of 2011. The business

What Information System Holds in Accounting Industry's Future
Words: 7679 Length: 20 Document Type: Term Paper

Information System holds in Accounting Industry's future? Looking through the glass and estimating what the future holds for any individual or profession is always a difficult exercise as the trends in any business or profession may change and so the path of development. It is better to look at the experience of some companies whose systems have changed over the past few years and thus try to estimate what is

Sarbanes Oxley Act of 2001
Words: 7885 Length: 29 Document Type: Term Paper

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

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now