Why Are Ethics Important in the Accounting Profession? Essay

1459 Words6 Pages
Why Are Ethics Important In The Accounting Profession?

Sheree Fletcher

CE CAPSTONE COURSE FOR THE ASSOCIATES DEGREE
IDS399

September 10, 2006

What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPA's, including those working as controllers or chief financial officers for organizations. When you hear the word "ethics," what is the first thing that comes to mind? Having to make the decision of doing what is right versus doing what is wrong. Some idealists say that decisions of ethics should not be conditional. However, that is not as simple as it
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In order to pass the self-study course the student must obtain a 90%. Ethical questions are also on the Uniform CPA Examination. The examination was revised in Spring of 2004; the exam now contains professional responsibility as part of the new section entitled "Regulation," and constitutes a maximum of 20% in this new section. Unfortunately, since 75% continues to serve as the passing grade for the examination, examinees will be able to pass the "Regulations" portion of the revised exam regardless of the examinees knowledge in ethics. No matter what form of testing that is mandated for the CPA licensure, some states may require applicants for certification to meet a character and fitness requirement. The state of New York has included questions about crimes and unprofessional conduct for their Application for License and First Registration candidates. CPA's are required to complete Continuing Professional Education (CPE) credits in every state except Wisconsin in order to maintain their licenses. The usual requirement is 40 credits per year. There are currently only ten states that require continuing training on ethics and professional responsibility, which typically is two hours annually or four hours every two years. However, 30 out of the 41 specified number of hours that must be taken exclusively in ethics or in other limited topics, including ethics. Even though the revised "Joint
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