This paper examines the role of ethics and moral values in the accounting profession, drawing on peer-reviewed research and industry observations. It surveys accounting students' moral decision-making processes, the influence of moral intensity on ethical judgments, and the effect of hands-on experience on cognitive moral development. The paper also investigates the root causes of ethical lapses, explores Islamic ethical frameworks as a model for accountants, and reviews curriculum recommendations for teaching ethics in higher education. Gender differences in perceptions of the Enron and Arthur Andersen scandals are also discussed. Together, these perspectives argue for more integrated, experiential ethics education in accounting programs.
The paper demonstrates effective use of secondary source integration: each cited study is not merely quoted but contextualized within the paper's broader argument. For example, Jones's theory of moral intensity is introduced through Leitsch's research and then applied to interpret the student survey results, showing how theoretical frameworks connect to empirical findings.
The paper opens with a framing quotation and an overview of the problem, then moves through five thematic sections: student moral reasoning, professional guidelines, causes of misconduct, Islamic ethical values, and curriculum recommendations. A brief empirical study on gender perceptions closes the body before a short conclusion. This progression moves from individual behavior outward to institutional and educational solutions, giving the argument a logical arc.
The important questions to be addressed are taken from the "business ethics/corporate social responsibility literature, oriented towards business enterprises but also of relevance to professional bodies: whether being ethical 'pays' in financial terms; and whether formal codes are useful in promoting ethical behavior" (Cowton, 2009, p. 177).
Accountants are charged with carrying out ethical and moral decisions in their everyday work, but judging from some of the scandals in recent years — Enron, WorldCom, Arthur Andersen, and others — not all accountants have kept pace with those ethical and moral obligations. This paper reviews the judgments that accountants should be making based on morality and ethical values, whether the accountant is working for a multinational corporation or for a small business with only a handful of employees.
Deborah Leitsch writes in the Journal of Business Ethics that auditors are being "turned into (financial) enablers," simply because there is "enormous pressure" placed on those doing auditing work to "produce earnings growth" (Leitsch, 2004, p. 313). That situation is not acceptable from a moral or ethical standpoint, Leitsch explains. Notwithstanding numerous studies of ethics in relation to accountants that examined "moral sensitivity," "moral judgment," and "behavioral intentions," there is an ethical aspect that has not received adequate attention: the "moral issue itself" and the "moral decision process" (Leitsch, p. 314).
Leitsch draws heavily on the research of T. M. Jones. Among Jones's findings is that moral intensity influences moral judgment, and that moral issues with "high intensity" will be recognized more often than "low intensity" issues (p. 314). In other words, it can be said with a degree of certainty that the moral decision process will be greatly influenced by the moral intensity of the issue before the accountant. According to Leitsch's application of Jones's theories, moral "intentions" will also be present more frequently when issues of high moral intensity are presented to the accountant.
To verify her findings, Leitsch surveyed 110 accounting students at a college in the northeastern United States. The students ranged in age from 21 to 30. The four scenarios given to the students "depicted a different ethical accounting issue found in the workplace" (Leitsch, p. 315). The issues were: (a) approving a "questionable expense report"; (b) "manipulating company books"; (c) "bypassing company policy"; and (d) "extending questionable credit" (Leitsch, p. 315).
Through her survey, Leitsch measured three values: moral sensitivity, moral judgment, and moral intentions. The results supported Jones's hypotheses. Students viewed Scenario 1 — approving a questionable expense report — as the most unethical action of the four. Scenarios 2 and 3 (manipulating company books and violating company policy) were seen as "more intense than Scenario 1" and more intense than Scenario 4 (extending questionable credit).
Leitsch was pleased that the results supported Jones's theory that individuals tend to perceive some situations as more morally intense than others. She noted that because of the publicity surrounding the Enron and WorldCom scandals, students were expected to find Scenarios 2 and 3 "more unethical" than Scenario 4, which involved extending credit to a customer whose eligibility was in question.
Hands-on experience helps university students learn about ethical accounting practices in concrete ways. Helen Brown-Liburd and Barbara Porco explain in Issues in Accounting Education that their study showed undergraduate accounting students who had interned with a public accounting firm, or who had participated as volunteers or members of Beta Alpha Psi, demonstrated "higher levels of cognitive moral development" (Brown-Liburd, 2011). These findings make clear that students develop a stronger sense of ethical behavior when they engage directly with real accounting situations in the community, rather than simply attending classroom lectures.
Kendra James writes in the Houston Chronicle that the main reason for presenting ethical guidelines — whether in a company or a university classroom — is "not to provide an exact solution to every problem," but rather to "aid in the decision-making process" (James, 2010, p. 1). A solid, established set of guidelines gives the accounting professional "a compass to direct him toward ethical behavior." Major companies and professional organizations, such as the American Institute of CPAs (AICPA), create codes of ethics that lay out in specific terms the responsibilities of an accountant. Even so, a person in the accounting industry should develop an ethical approach to every task, maintaining an awareness of the profession's potential pitfalls.
Many companies also try to reduce the likelihood of misconduct by requiring their accountants to complete "continuing education courses on ethics" (James, p. 1). Many companies now establish "whistleblower hotlines to encourage employees to demonstrate honesty and integrity in the workplace," James adds. Some accountants resist taking extra ethics courses, believing that "ethical behavior is not taught, but is inherent in an individual's personality" (James, p. 1). This resistance often reflects an old-school confidence that experience alone has equipped them with everything they need to know about the profession and its ethics.
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