Ethics Research
Assignment 1
Review of Accounting Ethics
Eric Christian
Strayer University
ACC-557 Winter 2013
Dr. Jacob Angima
Assignment 1
Review of Accounting Ethics
In the wake of recent, enormous corporate scandals and financial market upheavals, is the current business and regulatory environment more conducive to ethical behavior, or not? The answer is not that easy to arrive at, but there is evidence to say yes. Certainly, there has been an increase in awareness, vigilance, and disclosure. New laws, rules, and regulations have been established, such as, the Sarbanes-Oxley Act, which requires more disclosure among other things. However, “despite this expansive federal legislation, the executive suite has not rid itself of internal corruption. Although revised accounting practices will likely prevent [corruption]…. new corporate scandals have already begun to emerge, demonstrating the need for forward-looking ethical reforms rather than reactionary regulations” (Bishara, 2009, p. 766). Consequently, ethics education has been implemented into business, accounting, and finance course curriculums, as well as, those curriculums used for organizational training. Ghoshal wrote (as cited in Pendse, 2012, p. 266), “The corporate scandals in the United States have stimulated a frenzy of activities in business schools around the world. Deans are extolling how much their curricula focus on business ethics,” which “should not only focus on techniques” (Bishara, 2009, p. 31), but also “pay more attention to the improvement of professional ethics of accountants” (p. 31). Nonetheless, with increasing automation and complexity in accounting systems, along with the accelerated development of globalization, and yet the slower paced acceptance of unified standards, it can be difficult, to say the least, to monitor and keep abreast of all accounting practices and procedures that auditors and other professionals are assigned to examine. “Along with the accelerating process of
Review of Accounting Ethics
Eric Christian
Strayer University
ACC-557 Winter 2013
Dr. Jacob Angima
Assignment 1
Review of Accounting Ethics
In the wake of recent, enormous corporate scandals and financial market upheavals, is the current business and regulatory environment more conducive to ethical behavior, or not? The answer is not that easy to arrive at, but there is evidence to say yes. Certainly, there has been an increase in awareness, vigilance, and disclosure. New laws, rules, and regulations have been established, such as, the Sarbanes-Oxley Act, which requires more disclosure among other things. However, “despite this expansive federal legislation, the executive suite has not rid itself of internal corruption. Although revised accounting practices will likely prevent [corruption]…. new corporate scandals have already begun to emerge, demonstrating the need for forward-looking ethical reforms rather than reactionary regulations” (Bishara, 2009, p. 766). Consequently, ethics education has been implemented into business, accounting, and finance course curriculums, as well as, those curriculums used for organizational training. Ghoshal wrote (as cited in Pendse, 2012, p. 266), “The corporate scandals in the United States have stimulated a frenzy of activities in business schools around the world. Deans are extolling how much their curricula focus on business ethics,” which “should not only focus on techniques” (Bishara, 2009, p. 31), but also “pay more attention to the improvement of professional ethics of accountants” (p. 31). Nonetheless, with increasing automation and complexity in accounting systems, along with the accelerated development of globalization, and yet the slower paced acceptance of unified standards, it can be difficult, to say the least, to monitor and keep abreast of all accounting practices and procedures that auditors and other professionals are assigned to examine. “Along with the accelerating process of
References: Bishara, N., & Schipani, C. (2009). Strengthening the Ties that Bind: Preventing Corruption in the Executive Suite. Journal Of Business Ethics, 88765-780. doi:10.1007/s10551-009-0325-4 Bruns, S. ., Jackson, C., & Yue, Z. (2012). Designing an Effective Peer-Reporting System. Management Accounting Quarterly, 13(2), 8-13. Jessup, C. M., & Nance, H. E. (2011). A Fraud Case As Reported through SEC Documents: Revisiting Its Relevance in Today 's Regulatory Environment. Journal Of Accounting & Finance (2158-3625), 11(2), 155-169. Pendse, S. (2012). Ethical Hazards: A Motive, Means, and Opportunity Approach to Curbing Corporate Unethical Behavior. Journal Of Business Ethics, 107(3), 265-279. doi:10.1007/s10551-011-1037-0 Yong, C. (2012). Further Discussion on the Construction of Ethics of Professional Accountants. International Journal Of Business Administration, 3(3), 28-32. doi:10.5430/ijba.v3n3p28