Why Are Ethics Important in the Accounting Profession?

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Why Are Ethics Important In The Accounting Profession?

Sheree Fletcher

CE CAPSTONE COURSE FOR THE ASSOCIATES DEGREE
IDS399

September 10, 2006

What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPA's, including those working as controllers or chief financial officers for organizations. When you hear the word "ethics," what is the first thing that comes to mind? Having to make the decision of doing what is right versus doing what is wrong. Some idealists say that decisions of ethics should not be conditional. However, that is not as simple as it …show more content…

Violations of ethics provisions can have significant consequence for an accountant's finances, livelihood, or even licensure. Disciplinary action can be generated but more significantly may also serve as evidence of either negligence or malfeasance in a malpractice action. Any behaviors that violate any professional responsibility standards may disqualify the practitioner from appearing before the IRS or performing any SEC work. The National Association of State Boards of Accountancy (NASBA) issued in July 2006 an exposure draft on proposed revisions to the Uniform Accountancy Act, Rule 5-1 and 5-2. Views from students pursuing accounting degrees are seldom received and should be considered the requirements to sit for the CPA exam is established. A private college in New York took an advanced accounting course and required the 30 students to take a position on the NASBA proposal for additional ethics course. In a two-to-one ration, the students surveyed were in agreement of the proposal for the additional ethics courses. Some of the students argued that the ethics courses should be taught as separate and distinct courses. They felt that they should not be interwoven into the business curriculum. Many of the students had also expressed that they have been discouraged from studying accounting due to the 150-hour

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