City University of Seattle
June 20, 2014
This paper discusses in detail the issue of fiduciary responsibility. A fiduciary relationship describes an association in which an individual is vested with the obligation of caring for another person’s rights or property. The fiduciary relationship is supposed to be a very special and confidential association where the fiduciary must be honor-bound to legally accomplish their duties and remain loyal to the grantor’s trust in them (BoardSource & Independent Sector, 2003, p. 4)). A great majority of the most important business discussions in the twenty first century business arena regard business ethics (Atherton, Blodgett & Atherton, 2011, p. 1). In recent days, however, there has occurred increased concern and criticism regarding the failure of accounting officials to act in an ethical and responsible manner. Lack of fiduciary responsibility in the field of accounting is commonly blamed on the failure of the accountancy field to consider public interest as well as the tendency by accounting professionals to act unethically.
This paper will describe in detail the phenomenon of fiduciary responsibility in accounting. An explanation will be offered on how the issue has developed over time, and specific examples involving this ethical issue. After a brief explanation on what should be done regarding the issue, this paper will back up the recommended solutions with ethical concepts learned in the course. An explanation of at least one additional perspective on the issue will be offered. At the end of the paper will be a conclusive summary followed by a list of the references cited herein.
Development of Fiduciary Responsibility Over time the concept of fiduciary responsibility has developed. The concept of fiduciary responsibility in accounting has developed over the years to include the relationships that exist between
References: Ashton-Lewis, D. (2011). Fiduciary Nature of the Role of Accountant/Financial Advisor and the Client Atherton, S. C., Blodgett, M. S. & Atherton, C. A. (2011). Fiduciary Principles: Corporate Responsibilities to Stakeholders Barrett, W. P. (2011). Wal-Mart, Merrill Lynch Agree to Pay $13.5 Million to Settle 401(k) Fiduciary Lawsuit BoardSource & Independent Sector (2003). The Sarbanes–Oxley Act and Implications for Nonprofit Organizations Friedman, M. (1969). Memoirs of an Unregulated Economist. Aldine Publishing Company. Mariani, J. F., Kammerer, C. W. & Guffey-Landers, N. (2010). Understanding Fiduciary Duty. The Florida Bar Journal, 84(3). Paskell-Mede, M. (2004). Fiduciary Duty. Chartered Professional Accountants Canada. Ferrell, O. C., Fraedrich, J., & Ferrell. (2014). Business Ethics: Ethical Decision Making & Cases. (10th ed.). Boston, MA: Cengage Learning, 2014