Occupational fraud frequently involves the direct or indirect participation of professional accountants. To reduce fraud, companies often focus on the incentive/pressure and opportunity legs of the fraud triangle, perhaps believing that rationalization is beyond their control. We argue that rationalization reduction is necessary to minimize occupational fraud. We propose that educators and PA consider incorporating fences as controls to reduce rationalization. Because they focus on compliance and risk avoidance and are non-negotiable, fences appeal to accountant’s Myers Briggs personalities and conventional (...) level of moral development. Educators can teach students about the fences used in practice, and explain how they help new professionals resist pressures and temptations. By adding fences to existing professional guidance, accountants can reduce the likelihood that they will be a party to fraud. (shrink)

The purpose of this article is to clarify whether congruence between espoused and attributed organizational values in contemporary business circumstances is a necessity or just ‘nice to have’. Accordingly, two objectives are formulated: to investigate whether CEAOV has a direct impact on organizational effectiveness and to assess the mediating effect of organizational commitment between CEAOV and organizational effectiveness. The research was conducted within 15 Croatian companies. Data were collected through content analysis of the official websites of the companies, surveys of (...) employees, semi-structured interviews with the members of top management and analysis of publicly available financial reports. A conceptual model is proposed regarding the mediating effect of organizational commitment on the impact of the espoused–attributed value fit on effectiveness. Structural equation modelling was used for the analysis. The results show that CEAOV positively affects organizational effectiveness through the mediation of organizational commitment. The only path to attaining effectiveness is through commitment. No direct effect is found. Our research sheds light on the relevant role of authenticity, in the light of value congruence, in every organization. When employees and organizations live their values to the same degree, there is an impact on organizational commitment and hence on organizational effectiveness. (shrink)

Management accounting and control seeks to provide information that substantiates decision-making at all firm levels and thus may also foster ethical decision-making. Against this background, this article presents a systematic literature review of research on management accounting and control and business ethics that has been published in the Journal of Business Ethics. Through this review, we intend to bring to the forefront a research topic that has been widely neglected in broader literature reviews on accounting ethics research and that has (...) been covered by a small number of articles published by traditional leading accounting journals only. Our systematic literature review is guided by a theoretical framework that integrates the decision-facilitating and decision-influencing roles of management accounting and control information and the stages of the ethical decision-making process. Through this theoretical lens, we analyze 64 management accounting and control articles published in the Journal of Business Ethics over more than three decades. Synthesizing and structuring this research, we discuss prior accomplishments and elaborate on avenues for future research. (shrink)