Ethical issues encountered by Chartered Accountants

In 2008, the Institute of Chartered Accountants of Scotland (ICAS) published the report What do you do now? Ethical Issues Encountered by Chartered Accountants. This report by Dr. David Molyneaux contains 28 true life case studies of ethical dilemmas faced by accountants either in practice or business. The objective of the report is to bring ethical problems to life and to encourage debate and understanding of such issues, rather than providing definitive answers.

In recognition of this work, the ICAS Technical Policy Board published Shades of Grey which contains a further series of case studies. As a starting point, refer to Ethical dilemma 1: The creeping FD as well as Ethical dilemma 2: Double your money and Ethical dilemma 3: To be or not to be a NED. These topical case studies are designed to help embed ethical values and thinking into the day-to-day work of Chartered Accountants. Also, look at other views on the topic of ethics.

Teaching Ethics and Professional Judgment

According to an article published in the CPA Magazine, the big themes of morality, the public good and what it means to act with integrity are hot topics for business schools charged with teaching ethics and professional judgment to the next generation of accountants. So, what is the next generation of business leaders being taught about ethics and professional judgment? 

Traditionally, at the undergraduate level, they were taught only what is required by the profession’s code of conduct. Newer courses at some schools involve critical/ethical decision-making frameworks. Students learn what not to do using case studies of old and new ethical breaches that highlight what can happen when judgment/ethics is lacking. They learn about the pressures they’ll face to stay quiet and do nothing if they want to keep a job, protect a gold-standard brand or maintain a steady revenue flow for the company.

Is this enough when, in many cases, professional judgment and ethics don’t become a key focus until students have entered a master’s degree or a CPA professional education program? The article suggests that  “The objective is to make professional accounting students aware of ethical issues and failures so they can advise colleagues and executives on these matters and how to use ethical decision-making in other areas of the organization. They don’t teach business ethics in law school and they don’t stress it in marketing or anywhere else. Because the profession is based on ethics and because CPAs are preparing financial statements and auditing them, they have a lot at stake or should. If you want a culture of integrity, the profession has a big role to play.”

To learn more, read the article Teaching Ethics by Mary Teresa Bitti in the CPA Magazine, January/February 2016 edition. Also, look at other views on the topic of ethics.