CPAs are known and respected for their honesty.

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paper will discuss the public perception of CPAs in today's society, pitfalls that they may

encounter, methods to prevent some of these negative behaviors and consequences they

may face should they fall short. Most "Who Do You Trust?" surveys rank politicians,

lawyers and used car salesmen at the bottom and certified public accountants at the top.

That is because the CPA profession has a squeaky clean image--anal-retentive little

wimps who wear thick glasses and cannot get a date. CPAs are known and respected for

their honesty. The profession that goes out of its way to project that image, and there is a

certain amount of truth to it. Not all accountants are anal-retentive little wimps who

cannot get a date. Many of them are quite articulate. Some are quite lovely, in some

schools, more than half of the accounting majors are women. Also, not all CPAs are

squeaky clean and respected for their honesty. Some are quite dishonest and are putting a

black mark on the image of the entire profession. There is one area where the CPA

profession has fallen short of protecting the public interest. The general duty that

accountants owe to their clients and the other persons who are affected by their actions is

to "exercise the skill and care of the ordinarily prudent accountant" in the same

circumstances. Two elements compose the general duty of performance: skill and care.

Another element and responsibility is owed to clients and other persons, that is that

accountants should observe a standard of ethical or social responsibility. One set of

difficulties concerns ethics education's ability to instill the chosen values and to make

them stick after the educational process is completed. Instruction in accounting ethics is

directed at people whose character-or lack there-of-has largely been formed by the time

the instruction occurs. Although such instruction should increase the moral awareness of

those who are already predisposed to listen, its effect on the basically self-interested,

indifferent, or unethical is questionable. Even those who are positively influenced by

ethics instruction, moreover, may still behave irresponsibly if their careers or their

livelihoods require them to act in their client's financial interest. Recent pressure to

include more ethics instruction in the accounting classroom has placed an emphasis on

individuals who have a sense of moral responsibility. In accounting ethics education

literature the benefits of teaching ethics have been greatly influenced by the following set

of goals presented by Loeb (1988): 1. Relate accounting education to moral issues. 2.

Recognize issues in accounting that have ethical implications. 3. Develop "a sense of

moral obligation" or responsibility. 4. Develop the abilities needed to deal with ethical

conflicts or dilemmas. 5. Learn to deal with uncertainties of the accounting profession. 6.

"Set the stage for" a change in ethical behavior. 7. Appreciate and understand the history

and composition of all aspects of accounting ethics and their relationship to the general

field of ethics. An emphasis on codes of conduct may result in students' failure to

"develop discretion and judgment . . .which are more than simply a matter of what acts

are forbidden, which are required, and which are permissible" (Whitbeck, 1992, 128).

Emphasis on rules may quickly become training in how to get around the rules while

remaining technically legal. While students must be acquainted with professional codes

of conduct as part of their preparation for a career, most researchers on ethics do not

consider such material to be sufficient grounding in ethical training (Fulmer and Cargile

1993:Adams et al.1995). A few years ago the American Institute of Certified Public

Accounts (AICPA), the largest CPA membership organization in the world, decided that

starting in the year 2000, new members would have to have 150 semester hour of college

credits (5 Years) instead of the present four years to become a member (McGee). On the

surface that does not appear to any big deal. No one has to become an AICPA member to

practice public accounting or to be a CPA. But, there are several problems with this. The

most obvious is that the major group harmed is the students (or parents), who must cough

up another $10,000 or $20,000 for a fifth year of education. Then there is the added cost

of not having a job for the extra year it will take to complete the fifth year, so there is

another $25,000 - $30,000. But that is not all. The segment to the student population most

harmed by this insane policy is the segment least likely to be able to pay for a fifth year -

blacks, Hispanics, low-income students of whatever persuasion. Poor people and

minorities, along with rest of us, will have to face an even higher barrier to entry into the

accounting profession. (Metzger 1061) As mentioned earlier is additional education only

going to make accountants more proficient at learning techniques to get around laws,

perhaps using unethical behaviors? And at the same time force extra barriers on many

disadvantaged people hoping to make an honest living? This may be only speculation of

the could and could nots of what may happen, but serious food for thought. What are the

consequences of these unethical behaviors? Accountants can be held liable for damages

to clients and to third parties, he may also be found criminally liable for violation of

securities, tax, and other laws. For criminal violations, he may be fined and imprisoned.

Wrongful conduct may also result in the issuance of an injunction, which bars him from

doing the same acts in the future. In addition, his wrongful conduct may be the subject of

administrative proceedings by the Securities and Exchange commission and state

licensing boards. An administrative proceeding may result in the revocation of an

accountant's license to practice or the suspension from practice. Finally disciplinary

proceedings may be brought against an accountant by professional societies such as the

AICPA. Most states have statues imposing criminal penalties on accountants who

willfully falsify financial statements or other reports in fillings under the state securities

laws and who willfully violate the state securities laws or aid and abet criminal violations

of these laws by others. Accountants have great responsibilities to their clients and to

society. As an accounting major, doing research for this paper has helped to open my

eyes to the many aspects of my intended profession. I have realized that it is a very

trustworthy profession, held in the highest esteem by the public at large. I know that I

must take my job and the trust instilled in me very seriously. I hope that this paper has

enlightened you to the pitfalls many certified public accountants face today, both with

ethical standards and with impending educational requirements. Reference Page Fulmer,

W.E. and B.R. Cargile: 1987, "Ethical Perceptions of Accounting Students: Does

Exposure to a Code of Professional Ethics Help?" Issues in Accounting Education 2, 207-

219. Loeb, S.E.: 1988, "Teaching Students Accounting Ethics: Some Crucial Issues',

Issues in Accounting Education 3, 316-329. Metzger, J.D.: 1992. "Business Law and the

Regulatory Environment: Consepts and Cases 8th Edition. 1061. McGee, Robert W.,

"CPAs vs. the Public Interest". Dumont Institute, Ethic Information Center. 1. Whiteck,

C: 1992, 'The Trouble with Dilemmas: Rethinking Applied Ethic', Professional Ethics 1,

119-142. er, J.D.: 1992. "Business Law and the Regulatory Environment: Consepts and

Cases 8th Edition. 1061. McGee, Robert W., "CPAs vs. the Public Interest". Dumont

Institute, Ethic Information Center. 1. Whiteck, C: 1992, 'The Trouble with Dilemmas:

Rethinking Applied Ethic', Professional Ethics 1, 119-142.

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1249 paper will discuss the public perception of CPAs in today's society, pitfalls that they may encounter, methods to prevent some of these negative behaviors and consequences they may face should they fall short. Most "Who Do You Trust?" surveys rank politicians, lawyers and used car salesmen at the bottom and certified public accountants at the top. That is because the CPA profession has a squeaky clean image--anal-retentive little wimps who wear thick glasses and cannot get a date. CPAs are known and respected for their honesty. The profession that goes out of its way to project that image, and there is a certain amount of truth to it. Not all accountants are anal-retentive little wimps who cannot get a date. Many of them are quite articulate. Some are quite lovely, in some schools, more than half of the accounting majors are women. Also, not all CPAs are squeaky clean and respect ...
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