Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process

Abstract

The governing bodies of the Chartered Accountant (CA) profession and business schools go to great lengths to ensure accounting professionals are equipped with a skill set that meets technical, professional, ethical, and other general requirements. In spite of a strict code of ethics, violations of the professional conduct rules leading to disciplinary action are a reality. Using the total CA membership (N = 36,465) of Ontario, Canada, this study makes a 27-year retrospective assessment of the frequency of disciplinary cases, the characteristics of offenders, the disciplinary process, and the sanctions imposed. Results indicate that: (i) approximately 1.38 percent of the members have been charged with violations of the Rules of Professional Conduct by the Institute of Chartered Accountants over that period; (ii) most were sole proprietors engaged in public accounting; (iii) on average, men make up 76 percent of the CA membership, outnumbering women by three to one (3:1); yet, men were 16 times more likely than women to be charged; (iv) the majority of the offences occurred while members with public accounting licenses were conducting external audits; and (v) sanctions ranged from a "rap on the knuckles" admonishment to expulsion from the CA profession. This study is exploring the CA disciplinary process as observed through disciplinary notices and suggests improvements to the system.

Accountants’ satisfaction following unification of Canadian accounting bodies

“…Professional accountants gained significant prestige throughout the years, partly because the public has acknowledged that accountants are able to use professional judgment, particularly when the knowledge base is obscure and vague (Flanagan and Clarke, 2007). For example, the generally accepted accounting principles are at times unclear regarding the proper accounting practices for some complex situations (Leonard et al, 2016).…”

Making Disciplinary Information about Professional Accountants Available to the Public in Ontario*

“…(Priest 2011). The academic literature notes popular perceptions that accounting scandals are on the rise and that the accounting profession has a trust deficit (Leonard et al 2016;Wardley et al 2018). Therefore, the purpose of this study is to (i) examine how the accounting profession in the Canadian province of Ontario communicates its accountability regime to build public trust and protect the interests of lay clients and (ii) examine the extent to which, in creating public awareness of this accountability regime, the profession is oriented toward pragmatic legitimation, moral legitimation, or both.…”

“…In a society characterized by media saturation and expectations that information is just a proverbial mouse click away, public expectations of professionals such as doctors, lawyers, and accountants now include proactive awareness about competence, as illustrated by a letter published in the Globe and Mail that asked, “How do I do a background check on my doctor?” (Priest 2011). The academic literature notes popular perceptions that accounting scandals are on the rise and that the accounting profession has a trust deficit (Leonard et al 2016; Wardley et al 2018). Therefore, the purpose of this study is to (i) examine how the accounting profession in the Canadian province of Ontario communicates its accountability regime to build public trust and protect the interests of lay clients and (ii) examine the extent to which, in creating public awareness of this accountability regime, the profession is oriented toward pragmatic legitimation, moral legitimation, or both.…”

The Association between Locus of Control and Job Satisfaction to Auditor Ethical Sensitivity

“…The accountant profession is facing increasingly difficult challenges with many new standards that must be applied, demands for good corporate governance, foreign auditors, and the digital era 4.0 (Patama, 2018). Ethical/moral development and awareness play a vital role in all areas of the accounting profession (Leonard et al, 2016). Leonard et al (2016), performed at the auditor in Ontario-Canada, 1.38%, proves that members of the profession of Chartered Accountant (CA) were charged with a violation of the ethical behavior of the accounting profession.…”

“…Ethical/moral development and awareness play a vital role in all areas of the accounting profession (Leonard et al, 2016). Leonard et al (2016), performed at the auditor in Ontario-Canada, 1.38%, proves that members of the profession of Chartered Accountant (CA) were charged with a violation of the ethical behavior of the accounting profession. Ethical violations by the accounting profession also occur.…”