Research on professional responsibility and ethics in accounting, 2010
ABSTRACT This chapter explores the link between virtue and representational faithfulness in makin... more ABSTRACT This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.
This paper compares corporate governance principles in the U.S., UK, and Germany. The U.S. and UK... more This paper compares corporate governance principles in the U.S., UK, and Germany. The U.S. and UK represent shareholder models of ownership and control whereas in Germany a stakeholder approach to corporate governance provides greater input for creditors, employees and other groups affected by corporate decision making. Recent changes in the U.S. and UK as evidenced by the Sarbanes-Oxley Act and a variety of reports including the Cadbury Committee Report recognize the importance of a more independent board of directors, completely independent audit committee, and strong internal controls. In Germany, some of these initiatives have been suggested as well. The U.S. can learn from their British counterparts and endorse governance advances such as to separate out the role of the chair of the board of directors and the CEO. Other changes that would strengthen governance in the U.S. include to: limit the number of boards on which a person can serve; recognize the rights of stockholders to nominate directors; and give shareholders a more direct role in board oversight. The U.S. should consider adopting some of the German attributes in their governance system by incorporating employees and employee representative groups into the oversight process. After all, it was the employees that worked for Enron who suffered the most as a result of corporate fraud including a loss of jobs and the near wipe-out of their 401K retirement plans.
Corporate Governance: An International Review, Sep 1, 2005
Corporate governance systems develop as a result of cultural underpinnings, legal structures and ... more Corporate governance systems develop as a result of cultural underpinnings, legal structures and different forms of financing business. This paper describes these factors in the US and UK, two examples of strong shareholder ownership patterns of financing, and Germany, a country with a tradition of strong creditor financing. Recommendations are made for best practices in governance. Although enhanced governance mechanisms is a sound goal to pursue, the results may be meaningless unless internal controls are strengthened and top management and the board of directors establish an ethical tone at the top.
... Cases in accounting ethics & professionalism. Post a Comment. CONTRIBUTORS: Author: Mintz... more ... Cases in accounting ethics & professionalism. Post a Comment. CONTRIBUTORS: Author: Mintz, Steven M. PUBLISHER: McGraw-Hill Companies (New York). SERIES TITLE: YEAR: 1997. PUB TYPE: Book (ISBN 0070428344 ). VOLUME/EDITION: 3rd edition. ...
Research on professional responsibility and ethics in accounting, Oct 16, 2015
Abstract The Dodd-Frank Financial Reform Act sets new whistleblowing standards for internal accou... more Abstract The Dodd-Frank Financial Reform Act sets new whistleblowing standards for internal accountants and external auditors who fail to resolve differences internally with top management on financial reporting matters. Whistleblowers are eligible to receive a financial reward under Dodd-Frank if they “voluntarily” provide “original” information and meet other criteria. Interpretation 102-4 of the American Institute of Certified Public Accountants Code establishes reporting obligations for external auditors to meet the requirements of Dodd-Frank. The purpose of this paper is to critically evaluate the standards to better understand the whistleblowing process. A review of the literature identifies areas of concern in deciding whether to blow the whistle. The paper contributes to the literature by integrating thoughts, ideas, and issues raised by prior researchers and considerations specific to the whistleblowing process. The analysis results in the proposal of specific unanswered questions about the process that can guide future researchers.
Table of Contents Introduction List of Contributors List of Reviewers Monograph Papers Section 1:... more Table of Contents Introduction List of Contributors List of Reviewers Monograph Papers Section 1: Professionalism in Accounting: Myth or Reality? Chapter 1: Call of Duty: A Framework for Auditors' Ethical Decisions by Michael K. Shaub and Robert L. Braun Chapter 2: Professionalizing the Tax Accounting Profession: Fulfilling Public-Interest Reporting Responsibilities by Martin Stuebs and Brett Wilkinson Chapter 3: The Bloom is Off the Rose: Deprofessionaliztion in Public Accounting by Timothy J. Fogarty Section 2: An Ethic of Accountability, Societal Responsibilities, and Accounting for the Public Interest Chapter 4: Taking Pluralism Seriously Within an Ethic of Accountability by Jesse Dillard and Judy Brown Chapter 5: Social and Economic Implications of Increasing Income Inequality: Accountability Concerns by Sue Ravenscroft and Christine A. Denison Chapter 6: Professionalism, the Public Interest, and Social Accounting by Gordon Boyce Section 3: Defining the Public Interest in A...
Research on Professional Responsibility and Ethics in Accounting, 2010
ABSTRACT This chapter explores the link between virtue and representational faithfulness in makin... more ABSTRACT This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.
ABSTRACT Teaching Modules are sets of cases, references, and other materials organized around a s... more ABSTRACT Teaching Modules are sets of cases, references, and other materials organized around a special theme. While a single case or reading can be illuminating, a set of materials can show you multiple points of view on an issue, the main debates around an issue, or how a case comes to life through supplementary articles from the business press. For faculty members, Teaching Modules are closer to the kinds of integrated assignments that would appear on a course syllabus. We welcome your comments on how you might use the Teaching Modules or ideas for creating or adding to Teaching Modules. This Teaching Module was prepared by Dr. Steven Mintz, Professor and Area Chair, Cal Poly, San Luis Obispo, as part of CasePlace.org's Corporate Governance and Accountability Project.
This paper questions the ethicality of commercial relationships between universities and external... more This paper questions the ethicality of commercial relationships between universities and external donors. By examining cases such as technology transfer and the outside funding of research interests, we identify possible conflicts of interest between the external provider of financial support and academic institutions. The reality today is that university administrators, who have significant decision-making powers, proactively seek large corporate sources of funding that may compromise academic values including academic freedom and the ability to make institutional decisions without the influence of commercial interests. For example, Coca-Cola and Pepsi-Cola have provided extensive funding to universities in return for exclusivity rights to market their product on campuses even though such products may not be healthy alternatives to other soft drinks. Pharmaceutical and biotechnology companies may have opposing interests to faculty and universities if the results of research do not meet the expectations of the sponsors. Curricula issues may be slanted to promote the interests of a corporation or other provider of outside funding. Corporate partnerships between universities and companies such as Nike raise ethical questions when students or other members of the campus community object to the acceptance of financial support from a company that allegedly practices antisocial labor practices in developing countries. On the other hand, corporate funding can be used to supplement diminishing financial resources available to academic institutions, especially for public universities. One benefit of external funding is that it supports pharmaceutical and
International Journal of Business Excellence, 2010
This paper is a proposal to develop conceptual and practical frameworks for evolving corporations... more This paper is a proposal to develop conceptual and practical frameworks for evolving corporations seeking to improve their managerial performance in complex environments with actionable strategies for dealing with social, environmental and corporate governance issues. These frameworks are coalesced by social contract theory that extends the traditional view of the firm as a nexus of contracts to a broader view of the firm as a nexus of social contracts. A re-balanced scorecard is proposed to induce and evaluate management performance that captures important dimensions and aspects of the frameworks established for firms strategically choosing to change their long term objectives to include those related to meeting their social contract obligations.
The purpose of the case is to provide an opportunity for students to research Securities and Exch... more The purpose of the case is to provide an opportunity for students to research Securities and Exchange Commission filings in the Waste Management fraud and apply their knowledge of ethics and professional responsibilities to assess whether Andersen met its ethical obligations under the AICPA Code of Professional Conduct. The Waste Management fraud was selected because of the depth of accounting and auditing issues including: failing to properly record expenses; purposeful overstatement of earnings; netting one-time gains against operating expenses; failing to insist that proposed audit adjustments are made; and a lack of independence, objectivity, and due care in the performance of professional responsibilities. The case describes the $1.7 billion earnings restatement at Waste Management during 1992 – 1997. Students use a framework to analyze accounting irregularities and their effects on the financial statements. They critically evaluate Andersen’s professional judgments and decisio...
This paper compares corporate governance principles in the US, UK, and Germany. The U.S. and UK r... more This paper compares corporate governance principles in the US, UK, and Germany. The U.S. and UK represent shareholder models of ownership and control whereas in Germany a stakeholder approach to corporate governance provides greater input for creditors, employees and other groups affected by corporate decision making. Recent changes in the US and UK as evidenced by the Sarbanes-Oxley Act and a variety of reports including the Cadbury Committee Report recognize the importance of a more independent board of directors, completely independent audit committee, and strong internal controls. In Germany, some of these initiatives have been suggested as well. The U.S. can learn from their British counterparts and endorse governance advances such as to separate out the role of the chair of the board of directors and the CEO. Other changes that would strengthen governance in the U.S. include to: limit the number of boards on which a person can serve; recognize the rights of stockholders to nom...
American Journal of Business Education (AJBE), 2011
This paper describes a video case discussion project based on the IMAs Statement of Ethical Profe... more This paper describes a video case discussion project based on the IMAs Statement of Ethical Professional Practice that was administered in a cost accounting class to assess the extent to which students were able to identify and discuss ethical issues raised by the facts of a case scenario. The case was developed by the IMA to advance the continuing education in ethics of financial executives and management accountants. The scenario realistically portrays the kind of pressures faced by management accountants to go along with top management decisions that are driven by self-interest rather than proper accounting. We use a highly structured approach for direct assessment of student learning with pre-established rubrics. Indirect assessment of learning is approximated by a survey of students subjective reactions. In general, we conclude IMAs video Success without Compromise provides an opportunity for students to apply ethics standards in a realistic setting and encourages students to b...
American Journal of Business Education (AJBE), 2011
Accounting educators have a unique role in academe because students learn about codes of ethics t... more Accounting educators have a unique role in academe because students learn about codes of ethics that will guide their actions as professionals. We identify hypernorms related to internal auditing educators that reflect unethical behaviors believed to be universally unacceptable by that community. We then compare the results to a prior survey of accounting educators and identify ethical principles for accounting academics in their roles as teachers and researchers. The results might help to develop a code of ethics for accounting educators to help them serve as role models for students as they prepare to enter the accounting profession.
Research on professional responsibility and ethics in accounting, 2010
ABSTRACT This chapter explores the link between virtue and representational faithfulness in makin... more ABSTRACT This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.
This paper compares corporate governance principles in the U.S., UK, and Germany. The U.S. and UK... more This paper compares corporate governance principles in the U.S., UK, and Germany. The U.S. and UK represent shareholder models of ownership and control whereas in Germany a stakeholder approach to corporate governance provides greater input for creditors, employees and other groups affected by corporate decision making. Recent changes in the U.S. and UK as evidenced by the Sarbanes-Oxley Act and a variety of reports including the Cadbury Committee Report recognize the importance of a more independent board of directors, completely independent audit committee, and strong internal controls. In Germany, some of these initiatives have been suggested as well. The U.S. can learn from their British counterparts and endorse governance advances such as to separate out the role of the chair of the board of directors and the CEO. Other changes that would strengthen governance in the U.S. include to: limit the number of boards on which a person can serve; recognize the rights of stockholders to nominate directors; and give shareholders a more direct role in board oversight. The U.S. should consider adopting some of the German attributes in their governance system by incorporating employees and employee representative groups into the oversight process. After all, it was the employees that worked for Enron who suffered the most as a result of corporate fraud including a loss of jobs and the near wipe-out of their 401K retirement plans.
Corporate Governance: An International Review, Sep 1, 2005
Corporate governance systems develop as a result of cultural underpinnings, legal structures and ... more Corporate governance systems develop as a result of cultural underpinnings, legal structures and different forms of financing business. This paper describes these factors in the US and UK, two examples of strong shareholder ownership patterns of financing, and Germany, a country with a tradition of strong creditor financing. Recommendations are made for best practices in governance. Although enhanced governance mechanisms is a sound goal to pursue, the results may be meaningless unless internal controls are strengthened and top management and the board of directors establish an ethical tone at the top.
... Cases in accounting ethics & professionalism. Post a Comment. CONTRIBUTORS: Author: Mintz... more ... Cases in accounting ethics & professionalism. Post a Comment. CONTRIBUTORS: Author: Mintz, Steven M. PUBLISHER: McGraw-Hill Companies (New York). SERIES TITLE: YEAR: 1997. PUB TYPE: Book (ISBN 0070428344 ). VOLUME/EDITION: 3rd edition. ...
Research on professional responsibility and ethics in accounting, Oct 16, 2015
Abstract The Dodd-Frank Financial Reform Act sets new whistleblowing standards for internal accou... more Abstract The Dodd-Frank Financial Reform Act sets new whistleblowing standards for internal accountants and external auditors who fail to resolve differences internally with top management on financial reporting matters. Whistleblowers are eligible to receive a financial reward under Dodd-Frank if they “voluntarily” provide “original” information and meet other criteria. Interpretation 102-4 of the American Institute of Certified Public Accountants Code establishes reporting obligations for external auditors to meet the requirements of Dodd-Frank. The purpose of this paper is to critically evaluate the standards to better understand the whistleblowing process. A review of the literature identifies areas of concern in deciding whether to blow the whistle. The paper contributes to the literature by integrating thoughts, ideas, and issues raised by prior researchers and considerations specific to the whistleblowing process. The analysis results in the proposal of specific unanswered questions about the process that can guide future researchers.
Table of Contents Introduction List of Contributors List of Reviewers Monograph Papers Section 1:... more Table of Contents Introduction List of Contributors List of Reviewers Monograph Papers Section 1: Professionalism in Accounting: Myth or Reality? Chapter 1: Call of Duty: A Framework for Auditors' Ethical Decisions by Michael K. Shaub and Robert L. Braun Chapter 2: Professionalizing the Tax Accounting Profession: Fulfilling Public-Interest Reporting Responsibilities by Martin Stuebs and Brett Wilkinson Chapter 3: The Bloom is Off the Rose: Deprofessionaliztion in Public Accounting by Timothy J. Fogarty Section 2: An Ethic of Accountability, Societal Responsibilities, and Accounting for the Public Interest Chapter 4: Taking Pluralism Seriously Within an Ethic of Accountability by Jesse Dillard and Judy Brown Chapter 5: Social and Economic Implications of Increasing Income Inequality: Accountability Concerns by Sue Ravenscroft and Christine A. Denison Chapter 6: Professionalism, the Public Interest, and Social Accounting by Gordon Boyce Section 3: Defining the Public Interest in A...
Research on Professional Responsibility and Ethics in Accounting, 2010
ABSTRACT This chapter explores the link between virtue and representational faithfulness in makin... more ABSTRACT This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.
ABSTRACT Teaching Modules are sets of cases, references, and other materials organized around a s... more ABSTRACT Teaching Modules are sets of cases, references, and other materials organized around a special theme. While a single case or reading can be illuminating, a set of materials can show you multiple points of view on an issue, the main debates around an issue, or how a case comes to life through supplementary articles from the business press. For faculty members, Teaching Modules are closer to the kinds of integrated assignments that would appear on a course syllabus. We welcome your comments on how you might use the Teaching Modules or ideas for creating or adding to Teaching Modules. This Teaching Module was prepared by Dr. Steven Mintz, Professor and Area Chair, Cal Poly, San Luis Obispo, as part of CasePlace.org's Corporate Governance and Accountability Project.
This paper questions the ethicality of commercial relationships between universities and external... more This paper questions the ethicality of commercial relationships between universities and external donors. By examining cases such as technology transfer and the outside funding of research interests, we identify possible conflicts of interest between the external provider of financial support and academic institutions. The reality today is that university administrators, who have significant decision-making powers, proactively seek large corporate sources of funding that may compromise academic values including academic freedom and the ability to make institutional decisions without the influence of commercial interests. For example, Coca-Cola and Pepsi-Cola have provided extensive funding to universities in return for exclusivity rights to market their product on campuses even though such products may not be healthy alternatives to other soft drinks. Pharmaceutical and biotechnology companies may have opposing interests to faculty and universities if the results of research do not meet the expectations of the sponsors. Curricula issues may be slanted to promote the interests of a corporation or other provider of outside funding. Corporate partnerships between universities and companies such as Nike raise ethical questions when students or other members of the campus community object to the acceptance of financial support from a company that allegedly practices antisocial labor practices in developing countries. On the other hand, corporate funding can be used to supplement diminishing financial resources available to academic institutions, especially for public universities. One benefit of external funding is that it supports pharmaceutical and
International Journal of Business Excellence, 2010
This paper is a proposal to develop conceptual and practical frameworks for evolving corporations... more This paper is a proposal to develop conceptual and practical frameworks for evolving corporations seeking to improve their managerial performance in complex environments with actionable strategies for dealing with social, environmental and corporate governance issues. These frameworks are coalesced by social contract theory that extends the traditional view of the firm as a nexus of contracts to a broader view of the firm as a nexus of social contracts. A re-balanced scorecard is proposed to induce and evaluate management performance that captures important dimensions and aspects of the frameworks established for firms strategically choosing to change their long term objectives to include those related to meeting their social contract obligations.
The purpose of the case is to provide an opportunity for students to research Securities and Exch... more The purpose of the case is to provide an opportunity for students to research Securities and Exchange Commission filings in the Waste Management fraud and apply their knowledge of ethics and professional responsibilities to assess whether Andersen met its ethical obligations under the AICPA Code of Professional Conduct. The Waste Management fraud was selected because of the depth of accounting and auditing issues including: failing to properly record expenses; purposeful overstatement of earnings; netting one-time gains against operating expenses; failing to insist that proposed audit adjustments are made; and a lack of independence, objectivity, and due care in the performance of professional responsibilities. The case describes the $1.7 billion earnings restatement at Waste Management during 1992 – 1997. Students use a framework to analyze accounting irregularities and their effects on the financial statements. They critically evaluate Andersen’s professional judgments and decisio...
This paper compares corporate governance principles in the US, UK, and Germany. The U.S. and UK r... more This paper compares corporate governance principles in the US, UK, and Germany. The U.S. and UK represent shareholder models of ownership and control whereas in Germany a stakeholder approach to corporate governance provides greater input for creditors, employees and other groups affected by corporate decision making. Recent changes in the US and UK as evidenced by the Sarbanes-Oxley Act and a variety of reports including the Cadbury Committee Report recognize the importance of a more independent board of directors, completely independent audit committee, and strong internal controls. In Germany, some of these initiatives have been suggested as well. The U.S. can learn from their British counterparts and endorse governance advances such as to separate out the role of the chair of the board of directors and the CEO. Other changes that would strengthen governance in the U.S. include to: limit the number of boards on which a person can serve; recognize the rights of stockholders to nom...
American Journal of Business Education (AJBE), 2011
This paper describes a video case discussion project based on the IMAs Statement of Ethical Profe... more This paper describes a video case discussion project based on the IMAs Statement of Ethical Professional Practice that was administered in a cost accounting class to assess the extent to which students were able to identify and discuss ethical issues raised by the facts of a case scenario. The case was developed by the IMA to advance the continuing education in ethics of financial executives and management accountants. The scenario realistically portrays the kind of pressures faced by management accountants to go along with top management decisions that are driven by self-interest rather than proper accounting. We use a highly structured approach for direct assessment of student learning with pre-established rubrics. Indirect assessment of learning is approximated by a survey of students subjective reactions. In general, we conclude IMAs video Success without Compromise provides an opportunity for students to apply ethics standards in a realistic setting and encourages students to b...
American Journal of Business Education (AJBE), 2011
Accounting educators have a unique role in academe because students learn about codes of ethics t... more Accounting educators have a unique role in academe because students learn about codes of ethics that will guide their actions as professionals. We identify hypernorms related to internal auditing educators that reflect unethical behaviors believed to be universally unacceptable by that community. We then compare the results to a prior survey of accounting educators and identify ethical principles for accounting academics in their roles as teachers and researchers. The results might help to develop a code of ethics for accounting educators to help them serve as role models for students as they prepare to enter the accounting profession.
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Papers by Steven Mintz