Business Ethics In Accounting Essay

942 words - 4 pages

In the past there [ ] have been several cases in the business environment related to the practices of accountants and auditors who have violated the trust and confidence of public. A number of researches have been conducted to find the potential factors resulting in unethical, biased or inappropriate decision making and judgments by the professionals. The aim of this paper is to review two academic articles and conclude on the reliability of the claims and assertions made by the authors.
The research paper of Pflugrath, Martinov-Bennie & Chen (2007) aims to analyze the impact of organizational codes of ethics on the accountants’ and auditors’ judgments and professional decisions making skills. The research is conducted on a sample of 112 professional accountants and auditing students and resulted in indicating that the codes of ethics positively influence the judgments of professional accountants but does not affect the students’ judgments. On the other hand, the paper by Shafer, Morrid & Ketchand (2001) is based on the research of the professional auditors and the impact of their personal values on their ethical judgments and behavioral intentions. The study concluded that personal values do not affect the ethical considerations and judgments of professional auditors. However, the knowledge and the understanding of moral intensity have an impact on the judgments abilities of the professional accountants.
Pfflugrath, Martinov-Bennie & Chen (2007) conducted the study basing their discussion on the new International Standard on Quality Controls 1’s (ISQC1) requirements for all organizations and accounting firms to implement policies and regulations which support the ethical and technical independence of the professional accountants. “The presence of a code of ethics appears to have a significant influence on the quality audit judgments of professional accountants’’ (Pfflugrath, Martinov-Bennie & Chen, 2007). In terms of aggressive client preferences, the code of ethics may help in better judgment by the professional auditors and accountants. In contrast Shafer, Morrid & Ketchand (2001) suggest that in case of client’s pressure on aggressive financial reporting, “auditors’ ethical behavior influenced by economic or utilitarian considerations”. Shafer et.al., (2001) suggest that strong organizational norms should result in the standardization of behaviors. In this regard, the results of Pflugrath et. al. (2007) may be judged as fairly consistent that organizational codes of ethics may help in ethical decision making of employees and professionals in auditing and accounting fields. Unitary codes of ethics may help in standardization for the accounting and auditing professionals and may result in similar findings for the similar scenarios or situations that prevail in different companies or businesses.
Pflugrath et. al. (2007) gives arguments which are more persuasive and compatible with the existing literature. The research methodology of both...

Find Another Essay On Business Ethics in Accounting

Why Are Ethics Important In The Accounting Profession

1374 words - 5 pages for auditors of SEC registrants. Ethical and professional responsibility issues represent actual and increasing challenges for CPA's and the accounting profession due to the inclusion of ethics in the mandate and the consequences from ethics violations that may arise now and in the future. To define the relationship between Business Ethics and Accounting Ethics are as follows: Business Ethics has largely to do with the constraints placed on the

Code of Ethics in Management Accounting and Financial Management

516 words - 2 pages Code of Ethics in Management Accounting and Financial Management When faced with major problems and dilemmas in management accounting and financial management, practitioners look to the 'standards of ethical conduct' for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas

Business in Ethics

624 words - 2 pages by the IRS and their clients are being sought after for back taxes, penalties, and interest.Ernst & Young is not alone in this scandal. According to the article, finding ways to avoid paying taxes is a new wave of scandal hitting the accounting business. There are many other major accounting firms, such as KPMG LLP and BDO Seidman LLP that are under attack by the IRS for their questionable tax practices. There are several ethics

Business Ethics in workplace

2140 words - 9 pages Ethics in the workplace is also known as business ethics. According to Wikipedia, business ethic is defined as the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons who are engaged in commerce. Based on this idea of business ethics, I personally think that ethics in

Ethics In Business

666 words - 3 pages Is Good Ethics Good Business? While it might seem difficult for a business to practice good ethical conduct and still be successful, consumer advocates for good ethical business practice have established that the successful business is a "good business" founded on good ethics. In considering the pros and cons of good ethics within the business place, it is imperative to understand; 1) what good ethical practice is, 2) how good ethical practice

Ethics in Business

538 words - 2 pages After a two-year string of corporate scandals, the term "business ethics" has become reliable fodder for late-night talk-show hosts in search of easy laughs. Some people wonder if being ethical these days simply means not getting caught doing something illegal. The only question seems to become "Is it legal?" A society gets itself in trouble when it perceives legality and ethics to be the same. Although following the law is an important first

Ethics in business

1126 words - 5 pages With the development of society becoming swifter and swifter, ethics is more and more significant in judging what is wrong and right. Also, we do not ignore the influence of ethics but consider it as a standard of equity especially in business world. As we know, "business is an organization that manufactures or sells goods or services to satisfy some customer's needs in an attempt to generate a profit." It is the link and bridge of social and

Ethics in Business

1102 words - 4 pages country. According to Linda Trevino of Business Roundtable, if one is ethical in school, it is likely that they will be ethical in their lives. Ethics are rules one lives by and are part of the fabric that binds us to our society. One must lead by example and in the business world if one lives by these rules, chances are that their employees will do the same. One will find that if the leaders are ethical the employees will be too and they will

Ethics in Business

3162 words - 13 pages Introduction Ethics in business is important of everyday moral and ethical norms to business. Perhaps, the Ten Commandments from Bible come to mind as an example of morality that still used by many today. These commandments carry concept of being truthful and honest, and try to stay away from theft and greed. An idea of stewardship can be found in the Bible as well as many other religious literatures that can be and have been applied to

Ethics in Business - 2137 words

2137 words - 9 pages - Great!Ethics in Business>From a business perspective, working under government contracts can be avery lucrative proposition. In general, a stream of orders keep coming in,revenue increases and the company grows in the aggregate. The obviousdownfalls to working in this manner is both higher quality expected aswell as the extensive research and documentation required for governmentcontracts. If a part fails to perform correctly it can cause

Ethics in Business.

2126 words - 9 pages Ethics in BusinessFrom a business perspective, working under governmentcontracts can be a very lucrative proposition. In general, a stream oforders keep coming in, revenue increases and the company grows in theaggregate. The obvious downfalls to working in this manner is bothhigher quality expected as well as the extensive research anddocumentation required for government contracts. If a part fails toperform correctly it can cause minor glitches

Similar Essays

Ethics In Accounting Essay

2015 words - 8 pages Introduction There has been an increasing call for the consideration of ethics as part of accounting education programme and management globally in recent years. Many professional bodies are requiring ethics coverage. We regularly see calls for more ethical behavior in business in the media. Businesses need to clean up its act, including the phases and concepts as concern for environment, concern for employees, stakeholder interest, and the need

Ethics In Accounting Essay

553 words - 2 pages Ethics commonly refer to the rules or principles that govern what is considered 'right' and 'wrong' in regard to ones conduct. However, in the corporate businesses world ethics in accounting seems to be an after thought. With the highly publicized accounting scandals of WorldCom, Enron, and Tyco many business have adopted new policies, procedures along with internal controls to reduce the risk of litigation.In 2002 the government stepped in and

Ethics In Accounting And Financial Decision Making

586 words - 2 pages Many organizations today place significant emphasis on ethics and the financial decision making process within the organization. Organizations are expected to behave in an ethical manner in the current economy. There are many factors that influence organizations to ensure and enforce ethical policies. The purpose of this paper is to discuss ethics in accounting and financial decision making, how it relates to the United States Amy.An article

Managerial Accounting And Financial Accounting: Evaluate How Ethics Plays A Vital Role In Accounting.

811 words - 3 pages In today's fast paced world, Ethics have emerged as an integral part of every system. With the growing number of organizations worldwide and fierce competition, every firm wants a larger share of the pie. It is just a matter of time before businesses collapse and financial markets stumble on a worldwide scale. In order to avoid such a catastrophe, today's accountants have been given more challenges to face and higher roles to play within their