CASE STUDY 2
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 &ump; 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 &ump; 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 &ump; 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...