IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/40109.html
   My bibliography  Save this paper

Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting

Author

Listed:
  • Singh, Ajay Kumar
  • Vasudeva, Sakshi

Abstract

Accounting 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.

Suggested Citation

  • Singh, Ajay Kumar & Vasudeva, Sakshi, 2013. "Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting," MPRA Paper 40109, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40109
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/40109/1/Oct-7_2012_Dr_Ajay_Dr_Sakshi_paper-ethics1.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Ethics; Values; Accounting professionals; unethical reporting;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40109. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.