Ethics Accounting Essay
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 may sound. What constitutes "right" to one person may be "wrong" to anther; what clearly distinguishes the line between right and wrong? What some may look at …show more content…
After the demise of Anderson and the collapse of Enron, which shook corporate America, many stockholders began to make adjustments in their decision-making processes in order to reflect their concerns over the unethical business practices. The demands for financial reporting to go beyond the current requirements in order to achieve a deeper level of transparency in corporate reporting came form the stakeholders.
The focus on a rule-based approach to ethics comes from the desire of a company wanting to have good ethical reputation that characterizes a compliance mode. The integrity mode is when the firm becomes more proactive in the promotion of ethical behavior, by engaging all of the stakeholders. In the post-SOA environment, it was not that corporations have become more sensitive to their public's expectations in regards to their transparency of values.
How are ethics currently being handled? In order to enter into the profession some boards of accountancy in at least 26 states, not including New York, require CPA's to pass an exam on ethics or a course before sitting to take the Uniform CPA Examination. At least two-thirds or more of the states require CPA examination