Preparers of financial statements are in a position to manipulate the view of economic reality presented in those statements to interested parties. This paper examines two principal categories of manipulative behaviour. The term macro-manipulation is used to describe the lobbying of regulators to persuade them to produce regulation that is more favourable to the interests of preparers. Micro-manipulation describes the management of accounting figures to produce a biased view at the entity level. Both categories of manipulation can be viewed as (...) attempts at creativity by financial statement preparers. The paper analyses two cases of manipulation. First, it describes a recent case of significant and successful lobbying against the accounting regulator in the USA. The second case examines some recent Spanish earnings manipulation to demonstrate the effects of biased reporting at the entity level. Both types of creativity are considered in an ethical context. The paper concludes that the manipulations described in it can be regarded as morally reprehensible. They are not fair to users, they involve an unjust exercise of power, and they tend to weaken the authority of accounting regulators. (shrink)

This paper reports on a survey of auditors in New Zealand which investigates the nature of the moral judgements they make on a series of problems with ethical dimensions. The framework adopted for this purpose is developed from earlier work which identifies a range of ethical principles which may be involved in business ethical decision‐making. Auditors responded to a questionnaire which posed, firstly, several questions about the context of their ethical decision‐making, and secondly, a series of vignettes elaborating problematical dilemmas (...) which required the selection of one of four possible responses. Data was analysed to determine whether or not it confirmed previous findings in suggesting a predominant ethical orientation for auditors. The results were correlated with demographic variables in order to determine whether or not age, gender, position in firm and size of employee firm were significantly correlated to ethical response. The survey results, on the whole, confirmed the ethical orientation suggested by previous findings, but there were some unexpected results in three out of the ten vignettes examined. Although some correlations were found between the demographic variables and subject responses, the evidence of this survey does not strongly suggest a consistent significant correlation. (shrink)

This paper reports on a survey of auditors in New Zealand which investigates the nature of the moral judgements they make on a series of problems with ethical dimensions. The framework adopted for this purpose is developed from earlier work which identifies a range of ethical principles which may be involved in business ethical decision‐making. Auditors responded to a questionnaire which posed, firstly, several questions about the context of their ethical decision‐making, and secondly, a series of vignettes elaborating problematical dilemmas (...) which required the selection of one of four possible responses. Data was analysed to determine whether or not it confirmed previous findings in suggesting a predominant ethical orientation for auditors. The results were correlated with demographic variables in order to determine whether or not age, gender, position in firm and size of employee firm were significantly correlated to ethical response. The survey results, on the whole, confirmed the ethical orientation suggested by previous findings, but there were some unexpected results in three out of the ten vignettes examined. Although some correlations were found between the demographic variables and subject responses, the evidence of this survey does not strongly suggest a consistent significant correlation. (shrink)

Ethical Issues in Accounting offers a comprehensive and accessible introduction for students and teachers of business studies and accountancy as well as the practicing accountant. The book covers the ethical implications of several aspects of accounting: * ethics and taxation * creative accounting * ethics in accounting regulation * ethical dilemmas in the public sector * whistleblowing * various aspects of social accounting, including environmental accounting. The fitness of the accounting profession as guardians of accounting and auditing ethics is also (...) discussed in detail. (shrink)

_Ethical Issues in Accounting_ offers a comprehensive and accessible introduction for students and teachers of business studies and accountancy as well as the practicing accountant. The book covers the ethical implications of several aspects of accounting: * ethics and taxation * creative accounting * ethics in accounting regulation * ethical dilemmas in the public sector * whistleblowing * various aspects of social accounting, including environmental accounting. The fitness of the accounting profession as guardians of accounting and auditing ethics is also (...) discussed in detail. (shrink)

In all the literature about ethical dilemmas facing the accounting practitioner little attention has been paid to those which arise from the accountant's role in the process of accounting regulation. This treatment explores that role in the light of differing national modes of accounting regulation, economic impact issues in accounting regulation, some ethical principles and a number of different national illustrations. John Blake is Professor of Accounting in the Department of Accounting and Financial Services at the University of Central Lancashire, (...) Preston PR1 2HE, in which Catherine Gowthorpe is Principal Lecturer, while Julia Clarke is a member of the Department of Business Studies, Manchester Metropolitan University, Aytoun Building, Aytoun Street, Manchester M1 3GH. (shrink)

In all the literature about ethical dilemmas facing the accounting practitioner little attention has been paid to those which arise from the accountant's role in the process of accounting regulation. This treatment explores that role in the light of differing national modes of accounting regulation, economic impact issues in accounting regulation, some ethical principles and a number of different national illustrations. John Blake is Professor of Accounting in the Department of Accounting and Financial Services at the University of Central Lancashire, (...) Preston PR1 2HE, in which Catherine Gowthorpe is Principal Lecturer, while Julia Clarke is a member of the Department of Business Studies, Manchester Metropolitan University, Aytoun Building, Aytoun Street, Manchester M1 3GH. (shrink)