ETHICS AND ACCOUNTABILITY

Ethics and accountability

Ethics and accountability

Introduction

It is notable that for society, the accountant role is critical for them. As it is known that accountants plays the role of financial reporters and mediators among capital markets and owe their major responsibilities for the interest of public. The information that is provided by accountants is very important in supporting managers, stakeholders and investors for taking important monetary decisions. After Enron scandal, the profession of accounting is facing some sort of crisis (Low et al., 2008, pp. 222-254). In addition to this, this scandal is not new for this profession. In history, there are various examples in which accountants individually acted unethically. For instance after extensive lobbying the Act of Bankruptcy 1831 was amended in which official assignees for bankruptcy cases require to appoint an accountant (Edwards, 2001, pp. 675-696).

Discussion

It is observed that compared with other professional groups, accountant show low level of moral reasoning. With progress in their academic education they become less ethical comparatively. Thus students from accounting background have low awareness regarding ethics as compared to other students. They are unable to identify the broader concept of social responsibility issues that are related with professionalism. Also most of accounting students thinks of accounting as technical and amoral activity. These are all part of findings of accounting research literature. Various accounting institutes have argued their concern over ethical tendency of accounting students (Gray et al., 1994, pp. 51-75) as well as accounting practitioners. However, some scholars' purpose that professional from accounting shows low level of moral justification as compared to other professional (Eynon et al., 1997, pp. 1297-1309). This possibility further led to the argument for developing and implementing accounting ethics.

In addition to this, along with this concern there are some factors that influenced the development of ethical standards in accounting bodies. After Enron scandal, the profession of accounting is facing some sort of crisis (Low et al., 2008, pp. 222-254). In addition to this, this scandal is not new for this profession. In history, there are various examples in which accountants individually acted unethically. For instance after extensive lobbying the Act of Bankruptcy 1831 was amended in which official assignees for bankruptcy cases require to appoint an accountant (Edwards, 2001, pp. 675-696).

It is notable that ethics are being taught in universities during 1980s. However with passage of time the number of courses increased significantly. While teaching ethics to accountants involves lectures, case studies, role playing, guest lectures, case studies and various other mediums. It is found in recent studies that almost all of accounting textbooks includes ethics chapter or area. There are seven goals regarding objectives of ethical education for accountant and it was developed in 1988 by Stephen E. Loeb. These seven objectives are discussed later (Arjoon, 2005, pp. 343-352). These objectives are; to associate education of accounting with moral issues; develop a sense of responsibility among accountants; to identify various issues that might have ethical implication in accounting; to develop skills that are required to ...