Description
Why Did We Write This Book?
The first edition of Ethical Obligations and Decision Making in Accounting: Text and Cases was written in the wake of the dot.com bubble and accounting scandals at companies such as Enron and WorldCom. The second edition was written in the wake of the financial meltdown of 2007–2008 that was due to high-risk lending and borrowing practices. The result of these scandals has been an increased call by professional and regulatory bodies for ethics education of accounting students in values, ethics, and attitudes to support professional and ethical judgments and act in the public interest. We dedicate ourselves to this goal through our book.
Several states now require their accounting students to complete an ethics course prior to certification. Texas was first state to do so, and it requires accounting students in Texas and those moving into the state to complete an ethics course at a Texas university or in their home institution. California and Colorado require separate accounting ethics courses; states such as Maryland, New York, and West Virginia also haveseparate ethics course requirements. This book is written to enable instructors to address the content material that state boards typically expect to be covered in qualifying courses.
Ethical Obligations and Decision Making in Accounting was written to guide students through the minefields of ethical conflict in meeting their responsibilities under the professions’ codes of conduct. Our book is devoted to helping students cultivate the ethical commitment needed to ensure that their work meets the highest standards of integrity, independence, and objectivity. We hope that this book and classroom instruction will work together to provide the tools to help you make ethical judgments and carry through with ethical actions.
Our book blends ethical reasoning, components of behavioral ethics, reflection, and the principles of ethical conduct that embody the values of the accounting profession. We incorporate these elements into a framework to consider the ethical obligations of accountants and auditors and how to make ethical decisions that address the following material:
– The role of moral and cognitive development in ethical reasoning, ethical judgment, and ethical orientation
– Professional codes of conduct in accounting
– Ethical corporate governance systems
– Fraud detection and prevention
– Legal and regulatory obligations of auditors
– Whistleblowing obligations of accountants and auditors
– Earnings management issues and the quality of financial reporting
– Ethical systems, global ethics standards, and corporate governance considerations in doing business worldwide