1/15/2014 ethics in accounting dr. bailey, acct 7310
TRANSCRIPT
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Ethics in AccountingDr. Bailey, ACCT 7310
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Agenda
What are ethics? Ethical considerations Professional codes of ethics
Institute of Management Accountants (p. 16)
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Ethics Defined What are ethics?
Imply a connection with actions Concern what’s “good” or “right” to do
Two philosophical approaches Duty-based
Absolute laws (axioms) Consequences or outcome
Utilitarianism (Teleological; effects)
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Ethical Considerations
Decision making - factors Legal Profitable Ethical
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Ethical Considerations
Decision making - trade off right versus wrong right versus right costs, benefits
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4-Component Model What leads to ethical behavior?
James Rest proposed a 4-component model: Moral sensitivity to interpret situation Moral judgment to decide what’s best Moral motivation or degree of
commitment Moral character or courage to overcome
temptation, etc.
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Professional Ethics Accountants have traditionally ranked
high in public opinion surveys of the ethics exhibited by members of different professions.
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The Accounting Profession Accounting profession is changing
from information processor to consultant Competitive advantage- INTEGRITY
AICPA Code of Professional Conduct
IMA Statement of Ethical Professional Practice [visit website] The Institute of Management Accountants (IMA) is
the largest association of management accountants in the United States.
It provides a program leading to the Certified Management Accountant (CMA) certificate.
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Is Written Code “Good”? What message does it send?
Is it sufficient? Compare to rules vs. principles in
GAAP Who originated the specific code?
Motive? Enforceability?
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Summary Ethics are internalized moral
principles Increasing importance in
business IMA Code of Ethics
One basis Guides CMAs, other IMA members
Provides a basis to deal w/ conflicts