This book provides a comprehensive, authoritative, and thought-provoking examination of the ethical issues encountered by accountants working in the industry, public practice, nonprofit service, and government. Gordon Klein’s, Ethics in Accounting: A Decision-Making Approach, helps students understand all topics commonly prescribed by state Boards of Accountancy regarding ethics literacy. Ethics in Accounting can be utilized in either a one-term or two-term course in Accounting Ethics.
A contemporary focus immerses readers in real world ethical questions with recent trending topics such as celebrity privacy, basketball point-shaving, auditor inside trading, and online dating. Woven into chapters are tax-related issues that address fraud, cheating, confidentiality, contingent fees and auditor independence. Duties arising in more commonplace roles as internal auditors, external auditors, and tax practitioners are, of course, examined as well.
1 Introduction to Ethics 1
2 Ethical Principles and Reasoning 16
3 The Core Philosophies 42
4 Virtue, Justice, and Social Responsibility 62
Part Two Unethical Behaviors
5 Why We Cheat 86
6 Greed, Corruption, and Collusion 112
7 Fraud and Earnings Management 132
Part Three Professional Rules of Conduct
8 Discreditable Acts: Discrimination, Deceit, and Disclosure 156
9 Confidentiality 180
10 Independence and Moral Seduction 198
11 Conflicts of Interest 226
Part Four Other Responsibilities
12 Duties as a Whistleblower 248
13 Duties of Public-Company Auditors: The Sarbanes–Oxley Act 276
14 Duties of Tax Professionals 296
15 Duties of Fiduciaries: Financial Planners, Trustees, and Executors 318
16 Duties in the Accounting Workplace (Online only)
Subject Index 339
Real-World Professional Dilemmas Am I Ethical? questions addressed in the beginning of each chapter and includes practical questions and thoughtful solutions within the text.
Illustrations and Problems Focus on a diverse array of professional endeavors, including managerial accounting, tax compliance, investment planning, internal auditing, consulting, nonprofits management, trust and estate administration, and attest engagements.
Ethical Issues Based on recent research from a variety of disciplines to help readers identify and moderate their own ethical indiscretions. This focus on improving behavior is embraced in several chapters dedicated to understanding why we cheat, resolving conflicts of interest, motivating pro-social whistleblower conduct, and disrupting instinctive tendencies to act with unconscious bias.