Self interest among CPAs may influence their moral reasoning
Journal of Business Ethics 33 (1) (2001)
| Abstract | In 1990, the Federal Trade Commission (FTC) issued a consent order to the American Institute of Certified Public Accountants (AICPA). The order decreed the AICPA to lessen its longstanding ethics code which had until then banned the receipts of commissions, referral fees and contingent fees. The FTC alleged that the AICPA banned receipt of the fees as an attempt to restrain trade (FTC, 1990).In the present study, we sought to determine if CPAs'' preference for bans on commissions, referral fees and contingent fees is related to their moral reasoning whereby CPAs perceive the bans to serve as a means of resolving ethical issues. While determining this matter cannot prove whether the bans did or did not actually result in restrained trade, it can offer insight into the perceived ethical importance to CPAs of the overturned rules. Based on a random sample of AICPA members and using Rest''s Defining Issues Test (DIT) to measure moral reasoning, we did not find a CPA''s moral reasoning to be related to his/her preference for ethics rules which ban commissions, referral fees or contingent fees. However, our results did indicate that most CPAs prefer banning commissions, referral fees and contingent fees, with those CPAs holding a higher financial stake in public accounting, namely partners, favoring banning referral fees and contingent fees significantly less than CPAs with a lesser stake. Further, we noted a significant negative relationship between financial stake and moral reasoning. These results seem to suggest that self-interest among CPAs may influence their moral reasoning.Further study is needed to examine the relationship between self-interest of CPAs and their moral reasoning. If self-interest clouds moral judgments made by CPAs, capital markets are in danger. Rendering an independent audit opinion must exclude self-interest | |||||||||
| Keywords | No keywords specified (fix it) | |||||||||
| Categories | ||||||||||
| Options |
|
|||||||||
Download options| PhilPapers Archive |
Upload a copy of this paper Check publisher's policy on self-archival Papers currently archived: 5,679 |
| External links |
 |
| Through your library | Configure |
Similar books and articlesWilliam J. Bollom (1988). Ethics and Self-Regulation for CPAs in the U.S.A. Journal of Business Ethics 7 (1-2):55 - 61.
G. A. Claypool, D. F. Fetyko & M. A. Pearson (1990). Reactions to Ethical Dilemmas: A Study Pertaining to Certified Public Accountants. Journal of Business Ethics 9 (9):699 - 706.
Mary D. Maury (2000). A Circle of Influence: Are All the Stakeholders Included? Journal of Business Ethics 23 (1):117 - 121.
Mark R. Nixon (1994). Ethical Reasoning and Privileged Information: Resolving Moral Conflict. Journal of Business Ethics 13 (7):571 - 577.
Evelyn C. Hume, Ernest R. Larkins & Govind Iyer (1999). On Compliance with Ethical Standards in Tax Return Preparation. Journal of Business Ethics 18 (2):229 - 238.
Michael A. Pearson (1987). Auditor Independence Deficiencies & Alleged Audit Failures. Journal of Business Ethics 6 (4):281 - 287.
Suzanne Pinac Ward, Dan R. Ward & Alan B. Deck (1993). Certified Public Accountants: Ethical Perception Skills and Attitudes on Ethics Education. Journal of Business Ethics 12 (8):601 - 610.
Gail Eynon, Nancy Thorley Hills & Kevin T. Stevens (1997). Factors That Influence the Moral Reasoning Abilities of Accountants: Implications for Universities and the Profession. Journal of Business Ethics 16 (12-13):1297-1309.
Don W. Finn, Lawrence B. Chonko & Shelby D. Hunt (1988). Ethical Problems in Public Accounting: The View From the Top. Journal of Business Ethics 7 (8):605 - 615.
Barbara L. Adams, Fannie L. Malone & Woodrow James (1995). Confidentiality Decisions: The Reasoning Process of CPAS in Resolving Ethical Dilemmas. Journal of Business Ethics 14 (12):1015 - 1020.
Analytics
Monthly downloads |
Added to index2009-01-28Total downloads25 ( #49,575 of 549,070 )Recent downloads (6 months)1 ( #63,185 of 549,070 )How can I increase my downloads? |
My notes
Discussion
