Ethics The CPA firm is under pressure to adapt to an ever-changing marketplace. The global environment affects not only large corporations, but smaller entities as well. Additionally, the customer(s) are constantly being wooed by the competition, lower prices, and online convenience that was not available only a few short years ago. In order to maintain and grow the firm, action must be taken to keep clientele from leaving, while enticing new clients to move their business to the firm. It seems as if globalization has brought added pressure to small firms, yet opportunities still abound. This is not the 'normal' business environment that one might expect. As one recent study found however; "the management of abnormal situations becomes more important every day" (Aguilar, Prato, Bravo, Rivas, 2009, p. 406).

There are certain aspects of accounting that customers expect from their accountant and the firm that he/she works for. One of the first areas of concern is the ethical treatment of the customer's information, the right of privacy and the security with which the customer's private data is secured. Studies have shown that "with thoughtful planning, it is possible to balance the integrity of and access to the historical record of sensitive documents" (Wiener, Gilliland, 2011, p. 16). That being said, when an accounting firm is faced with lowering its costs (like the firm in the case study) and decides to do so by hiring non-CPA employees to handle sensitive customer information, the security of that information definitely comes into play. If the customer confirms (or even suspects) that the data and information is not being treated in a manner that displays care and consideration of the data then the client could easily pull the account and go elsewhere.

The CPA firm must at all times maintain its corporate image in order to attract, and keep, the business...

One study recently confirmed that corporate image is a key component considered by customers. The study showed that image is based on "the consumer's subjective overall assessment of the corporation" (Kreng, May-Yao, 2011, p. 529). Hiring individuals that are non-certified as accountants may make sense from a strictly financial point-of-view; however, such actions might lead to a higher rate of attrition based on corporate image and professionalism. Kreng's study determined that the role played by firms can have positive and negative impacts on customer's perceptions. He wrote "how a business deals with employees, investors, communities and others will influence consumer perceptions" (p. 529 -- 530). In other words, a CPA firm would look bad if it became known that it was hiring non-CPA certified employees to conduct what is normally accomplished by CPA's.
As to the ethics of such a situation; it would not necessarily be unethical to use such employees, especially if no promises are made up front as to the qualifications needed to complete some of the work. A 2010 study found that "ethics rules are important to understand because they are tools through which the dominant methods for establishing shared knowledge in any given historical moment become stabilized" (Stark, 2010, p. 338). Establishing the ethics rules in this case can come from a variety of different areas and entities. One entity dealing with the accounting industry is the Financial Accounting Standards Board (FASB); "FASB is the organization that promulgates accounting standards known as GAAP" (Ochoa, 2011, p. 494). Many of the GAAP standards deal with ethics and ethical situations.

Some of those situations can best be categorized in the following manner (as developed by the AICPA) 1 -- independence,…