Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting
AbstractAccounting scandals have shaken the confidence of the investor in the companies. Large number of people lost their money in these scandals. All these scandals were attributed to false, misleading, or untruthful accounting. This undermines the role of accounting professionals who did not report material manipulations in the financial results of the company. The study attempted to find an association between ethical values of accounting professionals and their choices in ethical dilemmas in their profession. Correlation scores in this study revealed that there is a statistically significant low degree of positive correlation between value assessment ratings and ethical dilemmas in scenarios. Similarly, the correlation coefficients computed between scenario ratings and formal ethics education indicates that the latter would be important in preventing the instances of unethical reporting. Ethical value score of professionals were found to be more explanatory than formal ethical education. The study strongly recommends building up of rigorous ethical and fiduciary responsibility in the financial sector through various means. The auditors must be trained to become responsible, independent, and judicious while conducting audits. Professional bodies should encourage compliance with ethical reporting practices in accounting by both carrot and stick approach.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40109.
Date of creation: 2013
Date of revision:
Publication status: Published in THE GLOBAL eLEARNING JOURNAL 3.2(2013): pp. 1-25
Ethics; Values; Accounting professionals; unethical reporting;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-10-18 (Accounting & Auditing)
- NEP-ALL-2013-10-18 (All new papers)
- NEP-HPE-2013-10-18 (History & Philosophy of Economics)
- NEP-IUE-2013-10-18 (Informal & Underground Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lisa McManus & Nava Subramaniam, 2009. "Ethical evaluations and behavioural intentions of early career accountants: the impact of mentors, peers and individual attributes," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 49(3), pages 619-643.
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