ethics - McGraw Hill Higher Education

Chapter 16
Professionalism, Ethics, and
Career Planning
McGraw-Hill/Irwin
© 2013 The McGraw-Hill Companies, Inc., All Rights Reserved.
Outline
• Expected outcomes
• Professionalism
• Ethics
• Certifications and licensure
16-2
Expected outcomes
• List and discuss
characteristics of a
professional.
• Explain how those
characteristics apply
to the accounting
profession.
• Discuss various
models / schools of
ethical decision
making.
• Explain how to
resolve ethical
dilemmas.
• Define ethics.
16-3
Professionalism
• Bell
– Communicates
effectively.
– Thinks rationally,
logically and
coherently.
– Appropriately uses
technical knowledge.
– Integrates knowledge
from many disciplines.
– Exhibits ethical
professional behavior.
– Recognizes the
influence of political,
social, legal, economic
and regulatory forces.
– Actively seeks
additional knowledge.
16-4
Professionalism
• McDonald
– Specialized knowledge base
– Complex skills
– Autonomy of practice
– Adherence to a code of ethical behavior
16-5
Professionalism
• Lecture break 16-1
Think of someone you know that you consider
“professional” based on the ideas just
presented. With a partner, discuss that person,
pointing out how they exemplify the
characteristics of a professional.
16-6
Ethics
• Moral philosophy
• Three areas
– Meta-ethics: Where do ethical principles
come from? What do they mean?
– Normative ethics: What moral standards
regulate right and wrong conduct?
– Applied ethics: How should people respond
to specific controversial issues?
16-7
Ethics
• Ethical issues in accounting
– Earnings management
– Performance evaluation
– Use of estimates
– Decisions involving human judgment
– Taxation
– Structuring transactions to meet certain
accounting rules
16-8
Ethics
• Schools of ethical
thought
– Utilitarianism
• The end justifies the
means
• The greatest good for
the greatest number
– Rights and duties
Individuals have certain
rights; others should not
interfere with them.
– Justice
• People should be given
what they deserve.
• Hamlet: If everyone
gets what they deserve,
who will escape
whipping?
– Virtues
People should do what is
right, moral and virtuous
16-9
Ethics
• Lecture break 16-2
Joe is frequently in
conflict with his
supervisor, Jill. Jill is
considering giving Joe a
– Choose one of the four
schools of ethical
thought.
– Explain how Jill might
justify her decision
based on the school
you chose.
poor performance review
in an effort to get him
terminated.
16-10
Ethics
• Models for making ethical decisions
Langenderfer and Rockness
• Identify the facts.
• Identify the ethics issues & stakeholders involved.
• Define the norms, principles and values related to
the situation.
• Identify the alternative courses of action.
• Evaluate the consequences of each possible
course of action.
16-11
Ethics
• Models for making ethical decisions
Langenderfer and Rockness (continued)
• Decide the best course of action consistent with
the norms, principles and values.
• If appropriate, discuss the alternative with a trusted
person to help gain greater perspective regarding
the alternatives.
• Reach a decision as to the appropriate course of
action.
16-12
Ethics
• Models for making ethical decisions
Mintz and Morris
•
•
•
•
Frame the ethical issue.
Gather all the facts.
Identify the stakeholders and obligations.
Identify the relevant accounting ethics standards
involved in the situation.
• Identify the operational issues.
16-13
Ethics
• Models for making ethical decisions
Mintz and Morris (continued)
• Identify the accounting and auditing issues.
• List all the possible alternatives you can or cannot
do.
• Compare and weigh the alternatives.
• Decide on a course of action.
• Reflect on your decision.
16-14
Ethics
• Lecture break 16-3
– Mike has observed what he believes to be
fraud in his company. Employees paid
through a government grant are doing less
than 1% of the work for which they are
contracted.
– Use one of the two ethical decision
frameworks to analyze Mike’s options in this
situation.
16-15
Certifications & licensure
• The purpose of an accounting degree is
not to prepare a student to pass a
particular certification / licensure exam.
• The purpose of an accounting degree is to
teach a student how to think and behave
like an accountant.
• Nevertheless, certification / licensure is a
worthy goal in our profession.
16-16
Certifications & licensure
• Certification: mastery
of a body of
knowledge
– Certified Fraud
Examiner
– Certified Internal
Auditor
– Certified Management
Accountant
– Certified Information
Systems Auditor
• License: permission
from some
authoritative body to
perform a particular
task
Certified Public
Accountant
16-17
Classroom assessment
• This chapter has
focused on:
– Professionalism
– Ethics
– Certification and
licensure in accounting
• On your own, prepare a
diagram or write a
paragraph that connects
those three topics to one
another.
• Discuss your work with a
partner or in a small
group.
16-18
16-19