- Aboody, Prof David, 131, 137
- accountability, 86
- accountants’ roles, 19–21
- accounting as a business, 198–200
- accounting as a profession, –5, 75–82
- Accounting and Review Services Committee (ARSC), 118
- accounting firms, , 75–82, 197–214
- code of conduct principles, 83–100
- code of conduct rules, 103–127
- code of ethics, 39–40
- ethical responsibilities, 206
- profession in crisis, 206–212
- sanctions, 221–222
- SOX, 25–27, 219–230
- accounting nature, 10–13
- accounting principles, 118–119
- accounting standards and regulations, 21–25
- actions, 36–37
- justification, 43–48
- reasons, 36–39, 43–49
- acts discreditable, 119–120
- advertising, 22, 24, 43, 121
- aggressive accounting, 13, 132
- Allegheny, 139
- alternative business structures, 208, 210
- American Accounting Association (AAA), 24–25
- American Institute of Certified Public Accountants (AICPA), 37
- accounting standards, 22–25
- code of conduct, 83–85, 140–141
- code of conduct principles, 85–96
- code of conduct rules, 103–124
- code of ethics, , 39–40, 72, 76, 78–81
- Cohen Report, 108, 137–139
- due care, 40, 86, 94–95, 150–151
- independence, 140–144
- professional skepticism, 148–150
- SOX, 26
- SSTS, 178–184, 187–190
- tax accounting, 178–185
- American International Group (AIG),
- AOL, 159
- Aristotle, 72, 91, 198
- Arthur Andersen, –3, , , 17, 21, 25–28, 79, 198, 205
- accounting profession in crisis, 206, 208
- accounting standards, 22, 25
- auditing function, 129, 141, 148
- code of conduct, 87, 92
- fraud, 33–35
- SOX, 26–27
- Arthur Young and Company, 133–134, 183
- asset cost, 17
- assets on the balance sheet, 12–13
- asset value, 12, 17
- audit committees, 23–26, 34
- Auditing, –3, , 16, 19, 129–151
- accountants’ roles, 19
- accounting standards, 21–25
- basic responsibilities, 137–140
- codes of conduct, 83, 85, 86, 92–95
- ethics of public accounting, 132–134
- fraud, 33–35
- independence, 22–25, 140–144
- independence risk, 144–148
- professional skepticism, 148–150
- prohibited activities, 223–224
- reasonable assurance, 150–151
- responsibility to public, 135–137
- SOX, 25–27, 220, 223–224
- Trust, 134–135
- Auditing Standards Board, 25, 118
- average cost, 18
- Baker, C. Richard and Hayes, Rick S., 136
- balance sheet, 11–12
- Bank of America, 50
- Bankruptcy, , 33–34, 129–130
- Barr, Andrew, 22
- BDO Seidman, 29, 34
- Beach, John E., 139–140
- Bentham, Jeremy, 65, 67
- best interests of and responsibilities to the client, 58–59, 76, 78
- accountants as professionals, 75–81
- auditing function, 132
- code of conduct principles, 83, 85–89, 94–95
- code of conduct rules, 122
- due care, 94–95
- black box accounting, 92
- BLIPS (tax shelter), 177–178
- boards of directors, 23
- managerial accounting, 159–160
- SOX, 25–27, 225
- Bogle, John C., 132–133, 141, 146–147, 198, 210–211
- Briloff, Abraham, 185, 206
- Burger, Warren E., 133–134, 136–138, 140
- business ethics, 79, 83, 167, 198–199
- business ethics community,
- Byrnes, Nanette, 33–34
- capitalism, 34, 132, 201
- justification, 65
- social responsibility, 201
- Carmichael, Douglas, 162
- Carroll, Archie, 205
- categorical imperative, 68–69, 134
- first formula, 69–70
- second formula, 70–71
- Cendant, 33, 164–166, 197–198
- certified public accountants (CPAs), 19–21, 23–25
- accounting profession in crisis, 206–208
- alternative business structure, 210–212
- auditing function, 135–137
- code of conduct, 86–87, 96
- fraud, 33–34
- qualifications, 75–76, 228
- SOX, 25–27, 219
- see also American Institute of Certified Public Accountants (AICPA)
- changes in cash flow, 11
- changes in financial position, 13
- changes in retained earnings, 13
- charity, 68–69, 203
- chief executive officers (CEOs), 26–27, 159–161
- chief financial officers (CFOs), 26–27, 134
- Cisco Systems, 207, 211
- classic moral dilemmas, 49–50
- codes of conduct
- Cohen Commission Report, 23, 137–139
- Cohn, Gordon, 143
- colleagues, 75–77
- code of conduct, 85
- responsibilities, 123–124
- subordination of judgment, 111–113
- Commission on Standards of Education and Experience for CPAs, 75, 77
- commissions, 120–121
- commitment, 46
- competence, 136, 189, 231
- conceptual framework, 11, 103–106, 111, 115, 141–142
- confidentiality, 98
- conflicts of interest, 22–23, 134, 135
- code of conduct, 95–96, 108–110, 121
- consulting, 26–27, 93
- independence, 143, 147–148
- integrity and objectivity, 107–110
- managerial accounting, 160
- SOX, 26–27, 93, 228
- Congressional Budget Office,
- consent, 14–15, 45, 109, 122, 160, 221
- consulting, –3, 19, 24, 118, 199–200
- conflicts of interest, 22–23, 26, 34, 93
- independence, 23, 94, 141–144, 146, 225
- objectivity and independence, 23, 79, 109, 113
- contingent fees, 120
- Cooper, Robert, 186–187
- Corporate and Criminal Fraud Accountability Act 2002, 229
- cost of goods sold formulas, 18
- creative accounting, 13, 209
- Crenshaw, Albert B., 10
- current assets, 12
- Dell, 34
- Deloitte and Touche, 29–30, 98, 207
- deontology, 49, 57–58, 64–65, 68–69
- Department of Justice, 34, 177–178
- depreciation, 12, 18
- Dickens, Charles Christmas Carol, 205
- DiLullo, Charles, 162–163
- director bars, 225–226
- disclosure, 10–11, 13–17, 24, 121, 133, 144, 160, 183
- conflicts of interest, 108
- duty to report errors, 139–140
- SOX, 26, 224–232
- dispute resolution, 59, 111
- distribution problem, 64–65
- divorce, 109
- Dodd–Frank, 27–28
- due care, 40, 86, 94–95, 117, 150–151
- duty, 66–71, 135–136, 151, 170, 179
- earnings management, 159, 163, 208, 209
- economic man, 61
- efficient market, 45
- egoism, 57–63, 71
- Enron, , , , 14, 17, 33–34
- accounting firms, 79, 205
- accounting profession in crisis, 198, 206–208
- accounting standards, 21, 27
- auditing function, 129, 141
- code of conduct, 80, 87, 92
- justifications, 162, 164, 199
- SOX, 26–27, 141, 148
- tax accounting, 180
- whistle‐blowing, 170
- Ernst and Young, 27, 29–30, 35, 37
- errors, 97, 150, 165
- New Century, 129
- responsibility to report, 25, 139–140
- tax accounting, 179, 181–182, 187–190
- ethical beliefs, 36, 38
- actions, 36–37, 39–48
- evaluation, 37–39, 58
- professional code, 39–40
- ethical dilemmas, 48–50
- ethics defined, 35–36
- eudaemonists, 65
- Everson, Mark, 177
- external accountants, 112–113
- extrinsic good, 65
- Fannie Mae, 157–158
- Fastow, Andrew, , 33
- Federal Reserve Board, 147, 219
- Federal Trade Commission (FTC), 22
- fees, , 23–24, 92, 103, 120–121, 227–228
- financial accounting see managerial accounting
- Financial Accounting Standards Board (FASB), 17, 19, 118, 119, 210
- justification of formulas used, 19
- Financial Executives International (FEI), 25
- financial market, , 11, 28, 132–134, 141, 146–147, 211
- financial planning, 19, 109, 118, 123
- financial statement, , 10–13, 16–19, 28
- basic responsibilities, 137–138
- professional skepticism, 148–150
- public accounting, 132–134
- reasonable assurance, 150–151
- reporting errors, 139–140
- first in, first out (FIFO), 18
- FLIP (tax shelter), 177
- Forensic and Valuation Services, 118
- form of organization, 122–123
- Frank, Garry, 186–187
- Franklin, Benjamin, 163
- fraud, , 23, 200
- auditing, 33–35, 139, 197
- GE, 163–164
- Grace, 164–166
- Happy’s Pizza, 190–192
- HealthSouth,
- KPMG, 178–179
- Micro Strategy, 164–166
- reasonable assurance, 150–151
- reporting, 139–140
- SOX, 25–26
- WorldCom, 27, 229–230
- Friedman, Milton, 77, 200–202
- Friehling and Horowitz, 35
- Friehling, David, 33
- Gateway, 159
- Gellerman, Saul W., 161–166
- General Accounting Standards Board (GASB), 118
- General Electric (GE), 163–194
- generally accepted accounting principles (GAAP), 38, 138, 208–209
- code of conduct rules, 118–119
- errors and fraud, 34
- financial statement, 16–19
- justifications, 161–166
- New Century, 129–130
- SOX, 220, 224, 227
- Goldman Sachs, 130, 147–148, 180
- good ethics as good business, 204–205
- Government Accountability Office (GAO), 114
- Grace, W.R., 165–166
- Grant Thornton, 34–35
- Greed, 199, 202–205
- Gunneman, Jon, 169–170
- HealthSouth, 27
- Hedonists, 65
- Heilig‐Meyers Company, 17
- historical cost less depreciation, 18
- Hobbes, Thomas, 60
- Holmes, Oliver Wendell, 184
- Howard, Richard P., 12
- Huebner, Solomon, 76–77, 79, 167
- Hugo, Victor Les Miserables, 49, 57
- human activity,
- hypothetical imperatives, 68
- first formula, 69–70
- second formula, 70–71
- improper influence, 225
- income statement, 11–13
- independence, 92–94, 114–117, 140–144, 207
- alternative business structure, 208
- auditing function, 19, 132–133, 136–138, 140–144, 151
- code of conduct principles, 85–86, 92–94, 98–95
- code of conduct rules, 103–110, 124
- consulting, 19, 141–143
- managerial accounting, 161
- professional skepticism, 148–150
- risk, 143–148
- SOX, 220
- threats, 142–144
- Independence Standards Board (ISB), 141–142, 144, 158
- insider trading, 37, 97–98
- Institute of American Accountants (IAA), 22
- Institute of Internal Auditors (IIA), 25
- Institute of Management Accountants (IMA), 25
- code of conduct, 84, 231–233
- code of ethics, 158–161, 166–167
- integrity, 89–92, 107–114
- auditing function, 132, 133, 135
- code of conduct, 84–86,90–87–92, 94–95
- code of conduct rules, 103, 107–114, 124
- IMA code of conduct, 232
- managerial accounting, 160, 170
- intellectual enterprise of ethics, 36
- intended incentives, 184–185
- internal auditing control, 138–139, 227
- Internal Revenue Service (IRS), 13, 18, 177–178, 182–183, 185–186, 189, 191–192
- disclosure, 13
- tax shelters, 34, 177–179, 185
- International Accounting Standard Board (IASB), 118
- International Ethics Standard Board for Accountants (IESRA), 84
- International Federation of Accountants (IFAC), 84
- International Financial Reporting Standards (IFRS), 209, 211
- intrinsic good, 65–66
- Johnson and Johnson, 44, 204
- JP Morgan Chase, 50, 130
- justifications for unethical behavior, 161–166
- Kant, Immanuel, 67–71, 202
- Keenan, William, 123
- KPMG, 207, 211
- fraud, 34–36, 79, 177–179
- New Century, 129–132, 137, 138, 143
- tax accounting, 92, 177–179
- tax evasion, 79
- last in, first out (LIFO), 18
- Lay, Kenneth, 170
- Levitt, Arthur, 10, 141, 146
- Levitt, Theodore, 108
- liabilities, 11–12
- Lifson, David A., 184–185
- Livent, 33, 197
- loopholes, 180–181, 183–185, 187
- Lucent, 164
- Lux, Kenneth, 205
- Lybrand, 211
- lying, 13–16, 28, 63, 90–91, 111, 134
- Madoff, Bernard, 33
- Management Consulting Services, 118
- management services, 22–25, 138–139
- managerial accounting, , 19, 157–171, 211–212
- manipulation, 15, 19, 21
- market transactions disclosure, 13–14
- Manza, Robert D., 159
- McGinn, Daniel, 162
- McGregor, Douglas The Human Side of Enterprise, 205
- Metcalf Committee, 23–24, 201
- Micro Strategy, 164–165
- Mill, John Stuart, 62, 65–68
- misrepresentation, 111, 112, 134
- Missal, Michael, 130
- National Commission on Fraudulent Financial Reporting, 24
- negligence in failing to detect fraud, 34
- net income, 18
- New Century Financial Corporation, 129–132, 137, 138, 143
- New York Stock Exchange, 130
- non‐current assets, 12
- non‐current liabilities, 12
- Novack, Jane, 207
- numbers game, 10
- objectivity, 92–94, 107–110
- code of conduct, 84, 86–87, 93–96
- code of conduct rules, 103, 105–109, 124
- IMA code of conduct, 232
- managerial accounting, 159, 160, 170
- Office of Federal Housing Enterprise Oversight, 157
- opinion shopping, 120
- OPIS (tax shelter), 178
- owners’ equity, 12, 13
- Oxford Health Plans, 162
- partner rotation, 27, 148, 224
- Peat Marwick, 207, 211
- personal financial planning (PFP), 109, 118
- Pinocchio, 90–91
- Plato, 72, 91, 198
- pluralists, 65
- Powers, Charles, 169
- predicting the future, 66
- Price, T. Rowe, 12
- Pricewaterhouse Coopers, 33, 35, 139, 144, 165, 198, 211
- Price Waterhouse, India, 37
- Private Companies Practice Section, 24
- pro forma accounting, 13, 119, 209
- problem of illicit means, 66
- professional code of ethics, 39–41
- professional skepticism, 148–151
- professionalism, –7, 86–87, 197–198, 200, 208
- auditing function, 136
- code of conduct, 83–88, 97–98
- tax accounting, 186
- whistle‐blowing, 166–170
- prohibition on personal loans, 227
- projections, –10
- psychological egoism, 60–62
- public accounting, 132–134
- Public Company Accounting Oversight Board (PCAOB), , 16, 96
- fraud, –10
- independence, 114
- professional skepticism, 139, 151
- reasonable assurance, 151
- SOX, 25–27, 35, 219
- standards, 117–118
- tax accounting, 178–179
- public interest, 87–89, 178–179, 202
- accountants as professionals, 75–79
- auditing function, 132, 135–137, 140
- code of conduct, 84–89
- Public Interest Oversight Board (PIOB), 84
- Public Oversight Board (POB), 24, 25
- qualifications, 75–76, 80–81
- Raju, B. Ramalinga, 35
- reasonable assurance, 150–151
- reasons for actions, 36–39, 42–49
- recognition of income, 18
- referral fees, 120–121
- repurchase reserve, 129–130
- rights, 45–46, 70
- Rite Aid, 164
- Ross, W.D., 66–67, 71
- Salinger, J.D. The Catcher in the Rye, 60
- sanctions, 221–223
- Sarbanes–Oxley Act 2002(SOX), , , 20, 25–28, 179, 219–221
- accounting firms, 198, 211–212
- adequacy of GAAP, 208
- alternative business structure, 210–212
- enforcement of code of conduct, 96
- objectivity and independence, 93, 141, 148
- standards, 21, 35, 118
- Satyam, 35
- Schilit, Howard M., 17, 162
- Schroeder, Michael, 32
- Scrushy, Richard, 27
- Securities Act 1933, 21–22
- Securities Act 1934, 21–22
- Securities Exchange Act 1934, 16
- Securities Exchange Commission (SEC), 16–17, 108, 198
- Arthur Young, 133, 183
- conflict of interest, 109
- enforcement of code of conduct, 96
- guide for code of ethics, 25–27
- HealthSouth, 27
- independence, 114–117, 141–142, 145–148
- managerial accounting, 157, 158, 163–166
- New Century, 129–132, 137, 139, 143
- PricewaterhouseCoopers, 33, 35, 139, 165, 197, 211
- SOX, 25–27, 198, 211
- Standards, 20–22, 24–25
- Securities Exchange Commission Practice Section (SECPS), 24
- self‐governance, 86–87
- self‐interest, 77–78, 143, 186, 205
- egoism, 57–62
- managerial accounting, 160–161
- social responsibilities, 199–201
- selfishness, 59–62, 76–78
- self‐regulation, 197
- selling and disclosure, 13–16
- Server, Andy, 163
- Silber, Steven, 139
- Simon, John, 169
- Smith, Adam, 60–62, 77, 200–202
- Egoism, 59–62
- The Wealth of Nations, 77, 200
- social practices, institution and system, 37, 43–44, 62–63
- social responsibilities, 200–204
- accountants as professionals, 75–77, 79–80
- code of conduct, 84, 86, 88
- SOS (tax shelter), 177
- standards, 111–113
- Arthur Young, 133, 183
- code of conduct rules, 103, 111–113, 125
- conduct, 75–77, 80–81
- KPMG, 130–132
- SOX, 25–27, 220
- tax accounting, 181–182, 189–190
- Statements on Auditing Standards (SASs), 25
- stock options, 208, 210
- study of ethics, 37–39
- subordination of judgment, 151–152
- Sunbeam, 33, 164, 197
- tampering with a record, 229–230
- tax accounting, , 10–11, 19, 92, 177–196, 211–212
- conflict of interest, 108–110
- tax evasion, 79, 178
- Tax Executive Committee, 118
- tax shelters, 34, 185, 208, 210
- Telberg, Rick, 20, 135, 207
- temporary freeze authority, 230
- Teresa, Mother, 61
- Todd, John, 159
- transactions approach, 18
- Treadway Commission, 24–25
- Truman, President Harry, 49–50
- trust, 134–135
- Turner, Lynn E., 129, 147, 198
- Tylenol (painkiller), 204
- United Health Care, 162
- universalizability, 107, 134–135, 180–181
- universal law, 69–70
- utilitarianism, 62–67, 89
- categorical imperative, 69–71
- deontology, 68–69
- Kant, 67–68
- virtue ethics, 72
- Vanguard Group, 132, 198
- Vatter, Bill, 161
- virtue ethics, 72, 89
- Vogel, David, 206
- Volcker, Paul, 147
- Waste Management, 198
- Watkins, Sherron, 170
- Weitzen, Jeffrey, 159
- whistle‐blowing, 166–170
- Whitehead, John, 147–148
- Willkie, Farr & Gallagher, 34
- WorldCom, , 27
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