The Routledge Handbook of Accounting Ethics

I. Historical perspectives on business and accounting ethicsHISTORY OF PROFESSIONAL ACCOUNTING ETHICSOverviewEthics in businessAccounting ethicsProfessionalismPublic accountingIndependenceAdvertisingFees, contingent fees, bidding, and commissionsTax practiceManagerial accountingInstitute of Management Accountants - code of ethicsConclusionNotesReferencesHISTORICAL DEVELOPMENT OF THE CODE OF ETHICS OF THE US PUBLIC ACCOUNTING PROFESSIONIntroductionThe historical development of the American code of ethicsDevelopments prior to the 1980sDevelopments in the 1990s and 2000sChanges in the market for accounting servicesThe Uniform Accountancy ActSubstantial equivalencyExperience requirementCPAs practicing in non-CPA firmsNon CPA-ownership of CPA firmsCommissionsCPA=CPADiscussionChanges to the code of ethics as a result of the UAA and the changes in accounting servicesCriticisms of the changesThe Sarbanes-Oxley ActThe 2014 codification of the code of conductTheoretical discussion of the purpose of a code of ethicsA code of ethics as a codified discourseDiscussionConclusionNoteReferencesIN OUR TIME: Accountant ethics and historical relativityEthical inquiry as a modernistic enterpriseDebatable proposition 1: theory guides our workDebatable proposition 2: “normal” science will lead gradually to the next paradigmDebatable proposition 3: the study of ethics is a reflection of our timesDebatable proposition 4: we know moral truthDebatable proposition 5: we are in controlDebatable proposition 6: free will existsSummaryNew ways of thinking about ethicsStudy what is saidExpose that which is ersatzAssume it is all about the moneyOwn your biasLet go of the illusion of controlSeek freedomSummaryNoteReferencesII. Alternative perspectives for thinking about accounting ethicsVIRTUE ETHICS AND THE ACCOUNTING PROFESSIONIntroductionAristotle’s concept of virtueIntellectual virtues and practical wisdomProfessional virtuesMacIntyre’s concepts of practice and inner goodsMany practices in one professionTeaching and developing moral virtuesConclusion and summary of future research opportunitiesNotesReferencesHABERMAS AND DISCOURSE ETHICSIntroduction: Habermas in perspectivePrinciples of discourse ethicsPrimacy of speechIdeal speechCommunicative actionThe broader context: systems and institutionsSystems and strategic actionInstitutions and mediationEthical discourse and professional accounting practice: selected studiesConceptual studiesApplied studiesConclusionNotesReferencesSTORIES AND ACCOUNTING ETHICSIntroductionHow stories workHow stories can be used to promote ethical understanding and behaviorStories in classroom ethics educationStories to promote ethics in organizationsEthical storytellingThe dark side of storiesWhat stories tell us about organizationsConclusion and recommendationsReferencesFEMINISM AND ETHICS IN ACCOUNTING: Emancipatory perspectivesIntroductionNone of us are free, [if] one of us are chained (Solomon Burke 2002)Feminist ethics and accounting and ethicsAccounting and ethicsEthical lapses: symbolic violence and “generalized” violence in accounting literatureWomen and violence in accounting literatureThe ethics of quantifying and taking accountA manifestation integrating accounting, feminism, and ethics: Gender Global Gap ReportsHow do Global Gender Gap Reports (GGGR) measure violence?GGGR category “health and survival” as a measure of violenceAlternative numbersConcluding remarksAppendix: EXAMPLES OF SELECTED COUNTRIES FOR GGGR 2018, AS PER FOOTNOTE 8AcknowledgmentsNotesReferencesIII. Religious perspectives on accounting ethicsUSE OF STORIES IN THE JEWISH TALMUD TO EMPHASIZE SUBSTANCE OVER FORMIntroductionRelevance to accounting professionTalmudic device: use of storiesRighteousness: the biblical intersection of form and substanceJustice, righteousness, and lovingkindnessTakanot - Talmudic “fixes” to the biblical lawMarket fixes - Takanot HashukFixes to promote human dignity, peace, and pleasantnessAccountants as advocates for human dignityConclusionReferencesA CHRISTIAN ACCOUNTING ETHIC: God’s image and work transform our image and workIntroductionCodes and perspectives on accounting ethicsMoral reasoning competence perspectivesVirtue ethics character perspectivesChristian perspective on accounting ethicsThe plan and the problem: Why God’s image and work are neededThe prescription and process: What God’s image and work provide to produce transformationThe love of GodThe righteousness of GodThe sovereignty of GodDiscussion of the Christian perspective on accounting ethicsThe profession and practice: how God’s image and work inform the accounting profession and protect accounting practiceConclusionAppendix: ANALYSIS OF THE BEATITUDESNotesReferencesHUMAN ACCOUNTABILITY AND DIVINE GRACE IN THE QURAN PERCEIVED THROUGH AN ACCOUNTING PERSPECTIVEIntroductionThe basis of accounting for salvation in the Qur’anCare for the environment in the pursuit of trade in the Qur’anSignificance of “rationality” in the Qur’anQur’anic teachings on tradeThe specific teachings of Riba, Zakat, and HisbaRIBA: Islamic injunction against usurious exploitationZAKAT: society’s tax for the welfare of those less privilegedThe nature of Zakat, a pillar of beliefPrescribed uses of ZakatHISBA: guarding the public interest and regulating the marketplaceFunctions performed by the MuhtasibConclusionsNotesReferencesIV. Topical perspectives on accounting ethicsETHICS IN AUDITINGIntroductionOverview of auditing ethics literatureIntegrity and objectivityUnderstanding in depth: NAS and auditor independenceMandatory audit-firm rotationPCAOB’s Auditing Standard No. 5Professional skepticism and industry specializationUnderstanding in depth: professional skepticismAuditor industry specializationProfessional behaviorConfidentialityConclusionNotesReferencesPROMOTING A STRONGER ETHICAL FOCUS IN MANAGEMENT ACCOUNTING RESEARCH AND PRACTICEIntroduction and backgroundGeneral framework for analyzing behavioral management accounting researchQuestion 1 : What management topical areas are generally being examined?Management control systemsCost accountingOtherQuestion 2: What research paradigms guide research as it seeks to influence practice?Question 3: What theories are used to help us understand management accounting?Question 4: What are researchers’ viewpoints and the resulting implications of their study for management accounting practice?Question 5: Is there an ethical perspective used?Question 6: How can we make progress toward a greater emphasis on ethical issues in management accounting behavioral research?Reference external work and target multiple audiencesExamination at multiple levelsSample research that references external work, targets multiple audiences, or examines work at multiple levelsExemplars of behavioral management accounting research promoting an ethics-based focusConclusions and closing remarksNoteReferencesDEVELOPMENT AND ANALYSIS OF THREE SUSTAINABILITY INITIATIVESBackgroundSocial stewardship in historical accounting literatureGRIProject 2025SASB standardsLev and Gu modelConclusionReferencesGOVERNMENTAL ACCOUNTING ETHICS: Providing accountability to maintain the public trustIntroductionEthical standards guiding government accountantsEthical problems and fraud that damage accountability and public trustInternal control measures that help prevent and detect fraudConcluding remarksReferencesETHICS AND ACCOUNTING INFORMATION SYSTEMSIntroductionEthics in technologyComputer ethics - the coreInformation technology and ethics - the widening scope of ethical concernInformation systems and ethicsAccounting information systems/enterprise systems - connecting the dotsCurrent technology trendsBig dataPrivacyThe Internet of ThingsCloud computingBlockchainConclusionAppendix: CODES OF ETHICS FROM SELECTED ACCOUNTING AND TECHNOLOGY- RELATED PROFESSIONAL ORGANIZATIONSNotesReferencesBLOCKCHAIN TECHNOLOGY IN ACCOUNTING INFORMATION SYSTEMS: Intended and unintended consequencesIntroductionBlockchain technologies - the basicsConfidentiality vs. transparency - ethical concernsBlockchain ethical design considerationsBlockchain adoption and diffusionConclusionsReferencesETHICAL CONSIDERATIONS OF CORPORATE TAX AVOIDANCE: Diverging perspectives from different stakeholdersIntroductionTheory of tax avoidance and ethics from the perspective of tax practitioners, corporate taxpayers, and the courtsReview of the literature: empirical evidence on differing perspectives on the ethicality of tax-avoidance from corporate suppliers of capital and the publicThe effects of tax avoidance on direct corporate stakeholdersThe public perception of tax avoidance and the effect of reputational concerns on corporate tax planningConclusionNotesReferencesPERSONAL TAX COMPLIANCE: Ethical decision making in the tax contextIntroductionTax amnestiesTax whistleblowingDiscussionNotesReferencesV. Education and accounting ethicsTHE ROLE OF PRACTICAL WISDOM IN ACCOUNTING ETHICS EDUCATIONIntroductionMoral will, moral skill, and practical wisdomMoral and intellectual virtuesResearch on the many facets of practical wisdomThe role of practical wisdom in Rest’s model and ethical decision makingTeaching students about practical wisdomExperiential learningGiving Voice to Values (GVV)Suggestions for curriculum developmentCase scenarioQuestionsConcluding commentsReferencesETHICS IN HIGHER EDUCATIONIntroductionUsers of the financial statementsEarly articles on ethics in the accounting reviewAccounting scandals’ influence on ethical practices and ethical educationFuture directions of ethics education and the professionCurrent practices for teaching ethics within accounting curriculaTeaching ethics in the classroomStudent perceptions of ethics educationPublishing ethics researchConclusionNotesReferencesHAVE ADVANCED DEGREES INCREASED ETHICAL PROFESSIONALISM FOR AUDITORS?Introduction: The master’s of accounting degree for auditors and the illusion of more ethical professionalsWhat is a professional?The economic rationale for the 150-hour requirementThe role of the AICPA and the Center for Audit Quality in promoting ethical professionalismEthical professionalism since 2008Examples of recent major ethical lapses by the audit professionInsider tradingAuditor independenceThe war against the PCAOB and KPMG’s theft of regulatory dataThe Big Four contradicted itself on professionalism when defending overtime lawsuitsThe growth of MAcc programs and the ethics of the 150-hour ruleThe last frontier - the firm-sponsored MAccIf not more education, then what can ensure ethical conduct?NotesReferencesA BUSINESS PRACTITIONER’S GUIDE TO RESOLVING MORAL DILEMMAS: Employing a Location Map to define boundaries of permissible behaviorIntroduction and purposeModeling moral dilemmasVisualizing ethical dilemmas with location mapsEthical dilemmas in accountingTax avoidance, evasionEarnings management, profit smoothingEmployee fraud and whistleblowingConclusionNotesReferencesVI. Ethical accountants and ethical accountingAN EXAMINATION OF THE VIRTUES OF ACCOUNTING EXEMPLARSIntroductionFrank WilsonJoseph St. DenisAlbert MeyerCynthia CooperAbraham BriloftArthur LevittConcluding remarksNotesReferencesINVESTIGATING THE ETHICAL IMPLICATIONS OF WHISTLEBLOWING WITHIN ACCOUNTINGIntroductionWhy is whistleblowing important for accounting?Whistleblowing and FraudWhistleblowing and auditorsWhistleblowing channelsImportance of multiple whistleblowing channelsImportance of both internal and external channelsHow to encourage whistleblowingIndividual characteristics associated with whistleblowingEnvironmental characteristics associated with whistleblowing (including incentives)Ethical implications of the whistleblowing processImplications for whistleblowersImplications for companiesConclusionReferencesTHE BOUNDARY PROBLEM IN A SURVEILLANCE SOCIETY: Moving beyond individual ethics and complianceIntroductionEmpty rhetoric of decision-usefulness and accurate accountingNot-so self-evident boundariesThe entity problem in codes of ethicsBoundaries and the theory of the firmOwenism and Fordism as mechanisms of controlRobert OwenHenry FordEthical issues in a data-driven economyMoving beyond individual ethics and complianceNotesReferencesA SURVEY OF DIVERSITY ETHICS IN THE ACCOUNTING PROFESSIONIntroductionObservable diversity ethicsContinuing challenges to diversity initiatives in the accounting professionConclusionNotesReferences
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