Aicpa Code Of Ethics Essay

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Many studies demonstrated how traditional ethical settings led to the unethical behavior and financial scandals of Enron, WorldCom, and Arthur Andersen. Satava, Caldwell, and Richards (2006) studied profiles of firms that included the accounting fraud. The researchers demonstrated the gap between constituted rules and its implementation in practice using the Enron and Arthur Andersen example (p. 271). The accounting profession has to possess the truthfulness and completeness of financial statements. The investors make their decisions relying upon the auditor’s conclusion. Therefore, auditors are considered with the highest integrity and public trust. Unfortunately, the example of Enron and Arthur Andersen demonstrates the fundamental problem …show more content…

Moreover, women have a high level of understanding and acceptance of ethics than men. Women also demonstrate the high percentage of ethical development. However, researchers Stanga and Turpen (1991) did not find any correlations or differences of male and female relation on ethics code provisions (p. 920). The results of Barnett and Karson (1989) study did not show any dissimilarities in gender’s opinions on AICPA Code of Ethics. The study of the influence of accountant role on possibly immoral behavior did not find any preliminary indications. However, David et al. (1994) stated that there are relationships between the ethical beliefs and behavior (p. 920). Theoretically, the level of organization can be a ground for ethical …show more content…

Carmichael examined the ethical auditing to help companies-clients become more effective. Ionescu used the Carmichael’s research to analyze ethical processes of external auditing. The ethical auditing refers to companies that possess high organizational values and demonstrate their support of stakeholder interests and fair bookkeeping system (p. 122). The author agreed with McAuliff (2002) on ethical functions of external auditing. Ionescu indicated that an external audit should assess the ethical environment of the company-client and develop comprehensive methodologies that improve the ethics

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