Ethics And The Auditing Culture : Rethinking The Foundation Of Accounting And Auditing

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Article #3 Abstract. The article reviewed was Ethics and the Auditing Culture: Rethinking the Foundation of Accounting and Auditing. The key of the abstract is to demonstrate how traditional ethical settings led to unethical behavior and financial scandals of Enron, WorldCom, and Arthur Anderson (p. 271). The authors emphasize the role of the AICPA Code of Conduct and ethical perspectives for accountants and auditors. Introduction. The authors study profiles of firms that included the accounting fraud. The main objective of the research is to improve the ethical conduct for accountants through the demonstration of the gap between constituted rules and its implementation in practice using the Enron and Arthur Anderson example. The accounting profession has to possess the truthfulness and completeness of financial statements. The investors make their decisions relying upon the auditor’s conclusion. Therefore, auditors are considered with the highest integrity and public trust. Unfortunately, the example of Enron and Arthur Anderson demonstrates the fundamental problem “material departure” in auditor’s professional performance. AICPA promotes integrity, competency, and objectivity that should be the part of professional thinking and actions. The researchers emphasizes goals of financial reporting (usefulness, certainty, and accuracy) that are followed by the AICPA Code of Conduct (p. 272). The study is important to reduce the manipulation of accounting rules through
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