The Professional Ethics Exam and Acts Discreditable: An Introductory Assignment

Bordeman, Adam; Westermann, Kimberly D.

doi:10.2308/iace-52545

Cited by 3 publications

(4 citation statements)

References 26 publications

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“…Students pass through the various stages of ethical decision‐making and use their virtues to arrive at a correct decision as prescribed by ethical theories (Mintz, 2006). For example, Bordeman and Westermann (2019) ask students to research various states' professional ethics exam requirements in the United States and evaluate current disciplinary actions/proceedings. In a case about corporate tax planning and tax avoidance strategies of multinational corporations, students consider the ethical issues around international corporate tax planning (Hess & Meyer Alexander, 2015).…”

Section: Teaching Notesmentioning

confidence: 99%

Compromising your morals: The perils of new beginnings as an auditor

Rankin,

Driskill,

Hartmann

et al. 2023

Int J Auditing

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This real‐world inspired case describes an ethical dilemma for a recently hired auditor and new Certified Public Accountant (CPA)/Associate Chartered Accountant (ACA) who must choose between cheating on a mandatory firm audit training and exam and suffering the possibility of negatively affecting her advancement with the firm and future compensation. The purpose of this case is to provide students the opportunity to identify an ethical dilemma, apply accounting ethics codes to evaluate potential responses and recommend an ethical course of action. Students completing this case will (1) understand the common pressures and complexities associated with an ethical dilemma; (2) be exposed to the American Institute of Certified Public Accountants' (AICPA Code) Code of Professional Conduct and the International Ethics Standards Board (IESBA Code) International Code of Ethics for Professional Accountants; (3) apply knowledge of the AICPA Ethics Decision Tree to a real‐world inspired ethical dilemma; (4) evaluate and analyse the various courses of action to an ethical dilemma; and (5) demonstrate the impact tone at the top and organizational culture have on employees and the firm. The case was very effective in exposing and enhancing student's overall knowledge 4.28 (σ = 0.57) and application 4.28 (σ = 0.65) of the AICPA Code.

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Section: Teaching Notesmentioning

confidence: 99%

Compromising your morals: The perils of new beginnings as an auditor

Rankin,

Driskill,

Hartmann

et al. 2023

Int J Auditing

View full text Add to dashboard Cite

show abstract

“…Ethical behavior is often argued to be driven more by moral values than written codes (Flanagan and Clarke, 2007; Nguyen and Dellaportas, 2021). Nevertheless, any professional ethics training begins with the code since it provides an initial vocabulary of morality and lays down the fundamentals of expected ethical behavior (Bordeman and Westermann, 2019). In order to influence ethical behavior effectively, the code must be relied upon, learned and practiced by professionals until internalized.…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…While there are exams on ethics in professional accounting and university courses, these mostly have a narrow focus on rules and violations or disciplinary sanctions (Bordeman and Westermann, 2019). The latest research by Nguyen et al (2022) used five ethical scenarios linked with five fundamental principles, but like extant studies, they also relied on Likert-type ethical scale responses.…”

Section: Introductionmentioning

confidence: 99%

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Do professional management accountants in business understand their professional code of ethics? Evidence from the Indian context

Ghosh

Bhuyan²

2023

JAEE

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PurposeThis paper aims to provide an objective and comprehensive evaluation of the understanding of the professional code of ethics of Indian Professional Management Accountants in Business (PMAIBs). It further delves into their individual, job and organizational characteristics as determinants of their understanding of the code.Design/methodology/approachThis study relies on data from 247 responses to a survey-based questionnaire. Overall scores and sub-scores of the level of understanding of the code were calculated based on questions grounded in IESBA Code and ethical dilemmas. The drivers of these scores were then examined using one-way ANOVA, OLS, Probit and ordered probit regressions.FindingsThis study found considerable heterogeneity in Indian PMAIBs' understanding of their professional code of ethics and substantial scope for improvements. PMAIBs were stronger in Application, Resolution and Threats but weaker in Theory and Principles. Further, PMAIBs who had ranked themselves higher on code-familiarity, had higher moral maturity, hailed from western India and worked for foreign-listed, foreign-owned firms were found to have a higher level of understanding of the code. Highly educated elderly professionals and professionals with more responsibility areas exhibited a lower level of understanding of the code.Research limitations/implicationsInsights from the study can help professional bodies, employers and academics identify and segment PMAIBs based on their ethics-training needs and customize interventions, which can benefit businesses and society through reduced corporate ethical failures. Considering the risk implications of Indian PMAIBs' inadequacies in understanding their code of ethics, the Indian professional accounting organization (ICAI-CMA) should mandate ethics in continuing professional development and expedite its long pending convergence with the IESBA code, a global benchmark for professional accountants.Originality/valueThis paper assesses the understanding of the professional code of ethics of PMAIBs, which is crucial yet amiss in the accounting ethics literature. While ethical decision-making is extensively researched, how well the professionals understand their code is yet unexplored. Research on PMAIBs, despite their unique ethical vulnerabilities and increasingly vital role in organizations, is still dormant. This study aims to fill these gaps by examining PMAIBs from India, an emerging economy under-represented in accounting ethics literature. India offers an important and rich setting for the study due to its large size, fast growth, deep integration with the global economy, high perceived corruption levels and poor ethical behavior of its firms.

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Afraid to Lose the Client: Client Advocacy Juxtaposed with the AICPA Code of Professional Conduct

Marshall,

Winstead,

Cao

et al. 2023

Journal of Forensic Accounting Research

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Stretching the bounds of the client advocacy role beyond what is sound, credible, and/or reasonable may threaten compliance with the AICPA Code of Professional Conduct (Code) (ET 1.140.010.03). Students evaluate real-life requests of a CPA to determine whether the client advocacy role was stretched and violated compliance with the Code. More specifically, students apply the Code’s principles, select rules of conduct, and threats to analyze and evaluate a CPA’s responses to her client’s requests that she provide bankers with financial and other information and reclassify income as debt. Student perceptions and knowledge pretests and post-tests indicate completion of the case increased students’ knowledge about the Code and required them to apply analytical and critical thinking skills. In addition, students believe the completion of the case was enjoyable and provided a valuable learning experience. Data Availability: Anonymous data are available upon request. JEL Classifications: M410; M420.

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The Professional Ethics Exam and Acts Discreditable: An Introductory Assignment

Cited by 3 publications

References 26 publications

Compromising your morals: The perils of new beginnings as an auditor

Compromising your morals: The perils of new beginnings as an auditor

Do professional management accountants in business understand their professional code of ethics? Evidence from the Indian context

Afraid to Lose the Client: Client Advocacy Juxtaposed with the AICPA Code of Professional Conduct

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