Ethics in Business

Ethics Article Review

Financial Analysis for Managers

FIN/324

Sept 26, 2011

L’Kenya Jackson

Ethics Article Review

The article I chose to analyze is “It’s a Matter of Integrity- Professional Ethics; Accounting” by William L. Schreiber. In the article Mr. Schreiber discusses how public trust of accounting firms eroded after Enron, WorldCom, and other recent similar situations. In the article he also explains what CPA’s are doing to repair their reputation in the publics’ eye.

Mr. Schreiber also discusses CPAs using good sound judgment, and being committed to integrity. He also states that CPAs are scrutinized as a whole more now than in any time in modern history.

“If you look to lead, invest at least 40% of your time managing yourself - your ethics, character, principles, purpose, motivation, and conduct. Invest at least 30% managing those with authority over you, and 15% managing your peers.” Dee Hock

Ethics Article Review

I felt that the author was doing his best to defend his chosen profession, not all accountants are dishonest. He stated that CPAs make decisions regarding a matter of materiality or proper disclosure in financial statements, making determinations of whether the item in question falls above or below the line drawn in the sand. My question is who draws the line and are the customers given a choice? I understand that the CPA’s judgment is often used to make the hard decisions, but as a customer “ignorance of the law is no excuse”.

The author discussed where integrity comes into play. He went on and on about taxes, and tax refunds. And how it is up to the CPA to do the best for the customer, again I ask why would there be an integrity question. I was raised with the belief that you have integrity or you don’t. The author also states that the California Board of Accountancy regulates that CPAs take an eight hour course on professional conduct every six years. But...