Accounting Ethics, 2nd Edition

Preface.

Introduction.

1 The Nature of Accounting and the Chief Ethical Difficulty: True Disclosure.

I The Nature of Accounting.

II Ethics of Disclosure.

III The Financial Statement.

IV Roles an Accountant can Fulfill.

V Development of Explicit Accounting Standards and Regulations.

VI The Sarbanes–Oxley Act (SOX).

VII Recent Scandals that Provoked More Regulation.

VIII Conclusions.

2 Ethical Behavior in Accounting: What Is Ethics?.

I What Is Ethics?.

II Ethics: The Intellectual Enterprise.

III Actions.

IV Social Practices, Institutions, and Systems.

V Why Study Ethics?.

VI Being Ethical: How to Determine What to Do.

VII Questions to Ask to Justify An Action: The Basis of Ethical Theory.

VIII Using the Reasons.

IX Ethical Dilemmas.

X Some Classic Moral Dilemmas.

3 Ethical Behavior in Accounting: Ethical Theory.

I Egoism.

II Utilitarianism.

III Kant and Deontology.

IV Deontological Ethics.

V The First Formula of the Categorical Imperative.

VI The Second Formula of the Categorical Imperative.

VII Virtue Ethics.

4 Accounting as a Profession: Characteristics of a Profession.

5 Accounting Codes of Conduct.

I AICPA Professional Code of Conduct.

II Code Principles.

III Criticisms of the Code of Conduct.

6 The Rules of the Code of Conduct.

I Section 100 – Independence, Integrity, and Objectivity.

II Section 200 – General Standards Accounting Principles.

III Section 300 – Responsibilities to Clients.

IV Section 400 – Responsibilities to Colleagues.

V Section 500 – Other Responsibilities and Practices.

7 The Auditing Function.

I The Ethics of Public Accounting.

II Trust.

III The Auditor’s Responsibility to the Public.

IV The Auditor’s Basic Responsibilities.

V Independence.

VI Independence Risk.

VII Professional Skepticism.

VIII Reasonable Assurance.

8 The Ethics of Managerial Accounting.

I Reasons Used to Justify Unethical Behaviors.

II Blowing the Whistle.

9 The Ethics of Tax Accounting.

10 Ethics Applied to the Accounting Firm.

I Accounting as a Business.

II The Social Responsibility of Business.

III Good Ethics is Good Business.

IV Ethical Responsibilities of Accounting Firms.

V The Accounting Profession in Crisis.

Afterword: Current Debates on Accounting Issues.

I Fair Value and Principles vs. Rules.

II Fair Value Accounting.

III Arguments For and Against the Fair Value Approach.

IV Summary.

V Principles vs. Rules.

VI Introduction.

VII Isn’t GAAP Already Principles Based?.

VIII An Example: The Continental Vending Case.

IX Recent Developments of “Present Fairly”.

X A Better Question.

XI Argument for a Rules Based Approach.

XII What Would a Principles Based Approach Look Like? The True and Fair Override.

XIII Argument for a Principles Based Approach.

XIV Conclusion.

Appendix A: Summary of Sarbanes–Oxley Act of 2002.

Appendix B: The IMA Code of Conduct for Management Accountants.

Index.