The nature of the work of the accountant—full of difficult decisions that can have significant impacts on individuals and businesses—dovetails frequently with the studies of theoretical and practical ethics. To be a successful professional, an accountant must understand the types of ethical questions that they are likely to face and the best ways to respond.
Thoroughly revised and updated for a new generation of accountants, Accounting Ethics examines the nature of the accounting profession through an exploration of the critical ethical questions inherent to the professional practice of the modern accountant. Considering both the ethical principles that govern the line of work in general, as well as the specific questions that are likely to emerge through active practice, Accounting Ethics considers the links philosophical ethics and accounting. Beginning with a history on the nature, purpose, and practice of accounting, Accounting Ethics offers current and beginning professionals a better understanding of their ethical responsibilities and offers practical guidelines for the improvement of individual and corporate behaviors.
Since the publication of the first edition, Accounting Ethics has become one of the most respected and frequently selected texts for general accounting and accounting ethics classrooms, known for the applicability of its practical and reader-friendly guidance and for its insight into the effects of global change on the profession. Here, students are introduced to the ethical responsibilities that accrue to professionals and to the ethical issues involved in the four major functions of modern accounting profession: auditing, management accounting, tax accounting, and consulting.
Filled with valuable context and insight, Accounting Ethics is a critical text for practicing accountants, new professionals, and those who are considering the profession.
Preface to the Third Edition vii
Introduction to Accounting Ethics 1
1 The Nature of Accounting and the Chief Ethical Difficulty: True Disclosure 9
2 Ethical Behavior in Accounting: What is Ethics? 35
3 Ethical Behavior in Accounting: Ethical Theory 57
4 Accounting as a Profession: Characteristics of a Profession 75
5 Accounting Codes of Conduct 83
6 The Rules of the Code of Conduct 103
7 The Auditing Function 129
8 The Ethics of Managerial Accounting 157
9 The Ethics of Tax Accounting 177
10 Ethics Applied to the Accounting Firm 197
Appendix A: Summary of Sarbanes–Oxley Act of 2002 219
Appendix B: IMA Statement of Ethical Professional Practice 231