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Ethics in Accounting: A Decision-Making Approach

Book Description

This book provides a comprehensive, authoritative, and thought-provoking examination of the ethical issues encountered by accountants working in the industry, public practice, nonprofit service, and government. Gordon Klein's, Ethics in Accounting: A Decision-Making Approach, helps students understand all topics commonly prescribed by state Boards of Accountancy regarding ethics literacy. Ethics in Accounting can be utilized in either a one-term or two-term course in Accounting Ethics.

A contemporary focus immerses readers in real world ethical questions with recent trending topics such as celebrity privacy, basketball point-shaving, auditor inside trading, and online dating. Woven into chapters are tax-related issues that address fraud, cheating, confidentiality, contingent fees and auditor independence. Duties arising in more commonplace roles as internal auditors, external auditors, and tax practitioners are, of course, examined as well.

Table of Contents

  1. Cover
  2. Title Page
  3. Praise for Ethics in Accounting
  4. About the Author
  5. Preface
    1. Organization and Guidance for Instructors
    2. Acknowledgments
  6. Part One: Ethical Frameworks
    1. Chapter 1: Introduction to Ethics
      1. What Is Ethics?
      2. Ethics and Accounting
      3. Ethics in Our Daily Lives
      4. Ethics in Our Professional Endeavors
      5. Ethical Judgments in Accounting
      6. Common Ethical Rationalizations
      7. Ethics in This Book
      8. Why Should I Be Ethical?
      9. Exercises
    2. Chapter 2: Ethical Principles and Reasoning
      1. Distinguishing Ethical Behavior from Legal Behavior
      2. The Universality of Ethical Rules
      3. An Introduction to the AICPA Code
      4. The Development of Moral Reasoning
      5. Making Ethical Decisions
      6. Exercises
    3. Chapter 3: The Core Philosophies
      1. The Core Philosophies
      2. Revisiting Core Ethical Principles
      3. Neurobiology and Ethical Decisions
      4. Exercises
    4. Chapter 4: Virtue, Justice, and Social Responsibility
      1. Distributive Justice
      2. Virtue Ethics
      3. Egoism and Concern for Others
      4. Corporate Social Responsibility
      5. Exercises
  7. Part Two: Unethical Behaviors
    1. Chapter 5: Why We Cheat
      1. Cheating
      2. The Rational Model of Cheating
      3. A Psychological Model of Cheating
      4. How the Intensity of a Moral Issue Affects Behavior
      5. Other Influences on Ethical Behavior
      6. Solving the Cheating Problem
      7. Exercises
    2. Chapter 6: Greed, Corruption, and Collusion
      1. The Instinctive Urge of Greed
      2. Bribery
      3. Kickbacks, Collusion, and Related Arrangements
      4. Insider Trading
      5. Exercises
    3. Chapter 7: Fraud and Earnings Management
      1. Financial Fraud
      2. Tax Fraud
      3. Exercises
  8. Part Three: Professional Rules of Conduct
    1. Chapter 8: Discreditable Acts: Discrimination, Deceit, and Disclosure
      1. Discreditable Acts Under the Code of Conduct
      2. Discreditable Acts in Tax Practice
      3. The Duty to Possess Sound Moral Character
      4. The Ethics of Full Disclosure
      5. Exercises
    2. Chapter 9: Confidentiality
      1. Why Confidential Information is Protected
      2. When Information is Confidential
      3. When Disclosure Occurs
      4. Client Consent
      5. Identifying Who is a Client
      6. The Accountant–Client Privilege
      7. Confidentiality in Tax Practice
      8. Exercises
    3. Chapter 10: Independence and Moral Seduction
      1. When Independence is Required
      2. How the Independence Rule is Satisfied
      3. The Seven Threats to Independence
      4. Moral Seduction and Other Behavioral Biases
      5. Safeguards That Counterbalance Threats to Independence
      6. Required Actions When Independence Is Impaired
      7. The Impact of the Independence Rule on Other Endeavors
      8. Other Sources of Independence Rules
      9. Exercises
    4. Chapter 11: Conflicts of Interest
      1. Identifying Conflicts of Interest
      2. Conflicts of Interest in the Accounting Profession
      3. The Broad Prohibition Against Conflicts of Interest
      4. Client Waivers of Conflicts of Interest
      5. Behavioral Aspects of Conflict of Interest Disclosures
      6. Resisting Temptation
      7. Conflicts of Interest versus the Duty of Confidentiality
      8. Managing Conflicts of Interest
      9. Conflicts of Interest in Tax Practice
      10. Exercises
  9. Part Four: Other Responsibilities
    1. Chapter 12: Duties as a Whistleblower
      1. What Is Whistleblowing?
      2. The Types of Whistleblowers
      3. Whistleblower Motivations
      4. Adversities Faced by Whistleblowers
      5. Outside Auditors as Whistleblowers
      6. Whistleblowing in Tax Practice
      7. Cultural Aspects of Whistleblowing
      8. Biological Aspects of Whistleblowing
      9. Encouraging an Ethical Organizational Culture
      10. Deciding Whether to Become a Whistleblower
      11. Exercises
    2. Chapter 13: Duties of Public-Company Auditors: The Sarbanes–Oxley Act
      1. How SOX Affects Publicly Traded Corporations
      2. How SOX Affects Company Management
      3. The Impact of SOX on Auditors
      4. The Impact of SOX on Tax Practitioners
      5. The Impact of SOX on Nonprofit and Private Organizations
      6. Exercises
    3. Chapter 14: Duties of Tax Professionals
      1. Professional Responsibilities in Tax Practice
      2. Duties as a Tax Return Preparer
      3. Duties as a Taxpayer Advocate
      4. Duties as a Tax Planner
      5. General Professional Duties
      6. The Taxpayer's Duties
      7. The Importance of Truthful Tax Reporting
      8. Exercises
    4. Chapter 15: Duties of Fiduciaries: Financial Planners, Trustees, and Executors
      1. Fiduciary Relationships
      2. Personal Financial Planners and Asset Managers
      3. Trusts and Trustees
      4. Executors and Administrators
      5. Fiduciary Issues in Tax Practice
      6. Auditor Independence Requirements for Trustees and Executors
      7. Exercises
  10. Subject Index
  11. End User License Agreement