Presentation on theme: "1/15/2014 Ethics in Accounting Dr. Bailey, ACCT 7310."— Presentation transcript:
1/15/2014 Ethics in Accounting Dr. Bailey, ACCT 7310
1/15/2014 Agenda What are ethics? Ethical considerations Professional codes of ethics Institute of Management Accountants (p. 16)
1/15/2014 Ethics Defined What are ethics? Imply a connection with actions Concern whats good or right to do Two philosophical approaches Duty-based Absolute laws (axioms) Consequences or outcome Utilitarianism (Teleological; effects)
1/15/2014 Ethical Considerations Decision making - trade off right versus wrong right versus right costs, benefits
1/15/ Component Model What leads to ethical behavior? James Rest proposed a 4-component model: Moral sensitivity to interpret situation Moral judgment to decide whats best Moral motivation or degree of commitment Moral character or courage to overcome temptation, etc.
1/15/2014 Professional Ethics Accountants have traditionally ranked high in public opinion surveys of the ethics exhibited by members of different professions.
1/15/2014 The Accounting Profession Accounting profession is changing from information processor to consultant Competitive advantage- INTEGRITY AICPA Code of Professional Conduct Code of Professional Conduct IMA Statement of Ethical Professional Practice [visit website] IMA Statement of Ethical Professional Practice The Institute of Management Accountants (IMA) is the largest association of management accountants in the United States. It provides a program leading to the Certified Management Accountant (CMA) certificate.
1/15/2014 Is Written Code Good? What message does it send? Is it sufficient? Compare to rules vs. principles in GAAP Who originated the specific code? Motive? Enforceability?
1/15/2014 Summary Ethics are internalized moral principles Increasing importance in business IMA Code of Ethics One basis Guides CMAs, other IMA members Provides a basis to deal w/ conflicts