Essay Business Ethics in Accounting

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In the past there [ ] have been several cases in the business environment related to the practices of accountants and auditors who have violated the trust and confidence of public. A number of researches have been conducted to find the potential factors resulting in unethical, biased or inappropriate decision making and judgments by the professionals. The aim of this paper is to review two academic articles and conclude on the reliability of the claims and assertions made by the authors.
The research paper of Pflugrath, Martinov-Bennie & Chen (2007) aims to analyze the impact of organizational codes of ethics on the accountants’ and auditors’ judgments and professional decisions making skills. The research is conducted on a sample of
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In terms of aggressive client preferences, the code of ethics may help in better judgment by the professional auditors and accountants. In contrast Shafer, Morrid & Ketchand (2001) suggest that in case of client’s pressure on aggressive financial reporting, “auditors’ ethical behavior influenced by economic or utilitarian considerations”. Shafer et.al., (2001) suggest that strong organizational norms should result in the standardization of behaviors. In this regard, the results of Pflugrath et. al. (2007) may be judged as fairly consistent that organizational codes of ethics may help in ethical decision making of employees and professionals in auditing and accounting fields. Unitary codes of ethics may help in standardization for the accounting and auditing professionals and may result in similar findings for the similar scenarios or situations that prevail in different companies or businesses.
Pflugrath et. al. (2007) gives arguments which are more persuasive and compatible with the existing literature. The research methodology of both the papers provides reasonable assurance of the validity of their judgments, however, Shafer et. al., (2001) has weakness of the homogeneity of the values of the sample which is the major portion of the participants used for the research. The results, hence, may not reliable for the diversified population of today’s business environment where people with…

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