Accounting scandals. Embezzlement. Fraud. “Taking the easy way out.” All too often we read these words in the paper or hear it on the evening news. Most of the tales tell of the failure by individuals in their fiduciary duty to properly handle, manage and/or report company assets and operations.
Values. Ethics. Integrity. Morality. Principles. Courage. “Doing the right thing.” Far more rarely reported are stories of those who are not only steadfast in their values, but also take action to right a wrong, despite the many factors that can pull an individual in many directions. Greed, management pressure, fear, and expediency are some of the many different aspects that divert an individual from a righteous path to the slippery slope of moral compromise.
In an era of some managements’ over-focus on analysts’ expectations and pressure to meet profit and loss targets, there are unfortunately many examples of cutting corners and so-called “earnings management” which later are labeled by the action’s real names: unethical behavior, criminal activity and fraud. In certain cases, the accountants become complicit, either wittingly or unwittingly, in the scandal.
How is a Certified Public Accountant (“CPA”) expected to navigate such treacherous shoals? The following course material is designed to assist the CPA in learning how to manage the ethical challenges that arise in today’s work environment. We will examine in Part I the basic ethical philosophies and values that individuals rely on to determine which actions are right and which are wrong. Part II will review the various guidelines, such as the AICPA Code of Conduct and the Washington Public Accountancy Act, to which CPAs must adhere. After covering rules, thoughts and philosophies, Part I and II can assist the CPA in determining the rightness and wrongness of an action, Part III will discuss ways in which individuals can improve their chances of behaving ethically. Woven throughout the material are various real-world case studies to illustrate various points.
As per the Washington State Board of Accountancy, you must complete the course in the same year indicated in the course title.