In whose interest? A critical examination of public interest appeals made by the public accounting profession in the USA

2013 ◽  
Vol 5 (1) ◽  
pp. 81 ◽  
Author(s):  
Steven Thornburg ◽  
Robin W. Roberts
Keyword(s):  
Public Interest ◽  
Critical Examination ◽  
Accounting Profession ◽  
Public Accounting ◽  
The Public ◽  
The Usa

Ethics and the Tax Profession: Restoring the Public Interest Focus

2010 ◽  
Vol 10 (1) ◽  
pp. 13-35 ◽  
Author(s):  
Martin Stuebs ◽  
Brett Wilkinson
Keyword(s):  
Public Interest ◽  
Adverse Outcomes ◽  
Fraud Triangle ◽  
Accounting Profession ◽  
Public Accounting ◽  
Tax System ◽  
Accounting Firms ◽  
The Public ◽  
Fundamental Causes ◽  
Tax Practice

ABSTRACT: Tax practice is an integral component of the public accounting profession. Although accountancy as a profession embraces a strong public interest notion, there is an inevitable tension in tax practice between serving the client and maintaining the integrity of the tax system. Resolving this tension necessitates an ethics-infused judgment process. Ethical failures over the past decade have weakened the tax profession and called into question the extent to which practitioners in fact operate in a manner consistent with the public interest. In this paper, we explore the fundamental causes of the ethical problems that have plagued the tax profession and provide a roadmap for reform of the tax profession. Using Cressey’s (1953) fraud triangle as a framework, we first examine the normative ideal for the tax profession. We then examine the recent tax shelter abuses perpetrated by the major public accounting firms and find results consistent with our expectations under the fraud triangle analysis. In essence, ethical breakdowns resulted from the loss of a public interest emphasis, which in turn led to the explicit pursuit of commercial gain at the expense of the public interest. That the frauds were perpetrated within the context of a profession founded on a public interest notion is particularly concerning. In response to the problems observed, we identify key cultural reforms needed within the accounting academy, the accounting profession, and the tax system in order to restore trust and the public interest character of the tax profession to center stage and so guard against further adverse outcomes.

A Proposed Framework Emphasizing Auditor Reliability over Auditor Independence

2003 ◽  
Vol 17 (3) ◽  
pp. 257-266 ◽  
Author(s):  
Mark H. Taylor ◽  
F. Todd DeZoort ◽  
Edward Munn ◽  
Martha Wetterhall Thomas
Keyword(s):  
Public Interest ◽  
Auditor Independence ◽  
Public Confidence ◽  
Sufficient Condition ◽  
Necessary And Sufficient Condition ◽  
Accounting Profession ◽  
The Public ◽  
Necessary And Sufficient

This paper introduces an auditor reliability framework that repositions the role of auditor independence in the accounting profession. The framework is motivated in part by widespread confusion about independence and the auditing profession's continuing problems with managing independence and inspiring public confidence. We use philosophical, theoretical, and professional arguments to argue that the public interest will be best served by reprioritizing professional and ethical objectives to establish reliability in fact and appearance as the cornerstone of the profession, rather than relationship-based independence in fact and appearance. This revised framework requires three foundation elements to control subjectivity in auditors' judgments and decisions: independence, integrity, and expertise. Each element is a necessary but not sufficient condition for maximizing objectivity. Objectivity, in turn, is a necessary and sufficient condition for achieving and maintaining reliability in fact and appearance.

A reflective analysis of the “new audit” and the public interest

2010 ◽  
Vol 6 (3) ◽  
pp. 300-329 ◽  
Author(s):  
Timothy J. Fogarty ◽  
John T. Rigsby
Keyword(s):  
Public Interest ◽  
Motivating Factors ◽  
Public Accounting ◽  
Accounting Firms ◽  
Content Type ◽  
Social Good ◽  
The Public ◽  
New Business ◽  
Recent Developments ◽  
Audit Approach

PurposePrior to the sudden collapse of large companies following the turn of the century and the implication that the auditing of these enterprises had failed, the large public accounting firms sought to re‐engineer the audit. A comprehension attempt to convert that which had been designed as a social good into one more aligned with a commercial logic was halted by the legislative response to this departure from classic professionalism. Recent developments suggest that change in this direction is regrouping. The purpose of this paper is to provide a reflective analysis of the thoughts of the authors on the early development of the new audit approach.Design/methodology/approachMost of the information in the piece was garnered from conversations with public accounting partners during the era in question. Logical argumentation derived from the academic and theoretical literature is the primary method.FindingsAttributes of the firms' strategies during this period are outlined. Features of the new audit are developed, especially as they vary from the traditional audit. These techniques and approaches are analyzed in terms of their ability to serve the public interest. This paper argues that motivating factors of the new audit will continue to be a force even in the more hostile regulatory environment of today.Practical implicationsAn appreciation of the findings of the study is useful in maintaining a level of skepticism about changes to the audit that are advocated by audit firms. Users of audit services, regulators, and legislators would benefit from an appreciation of the recent past. The motivating factors underlying these changes to audit environment continue to operate over time as the social purposes of the audit are less likely to be converted by the firms to ones that can be commercially exploited.Originality/valueThe study contributes insights into the origins of the new business audit approach and related strengths and limitations. These factors should be considered as the approach is developed and moves forward into the future in order for the audit approach to be effective in performing its social functions.

scholarly journals Analisis Profesi, Persyaratan Kerja dan hasil kerja akuntan terhadap Mahasiswa di Kota Batam

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 189-201
Author(s):  
Jenniver Jenniver ◽  
Mortigor Afrizal Purba
Keyword(s):  
Undergraduate Students ◽  
Accounting Students ◽  
Accounting Profession ◽  
Public Accounting ◽  
Work Requirements ◽  
Policy Makers ◽  
The Public ◽  
New Ideas ◽  
Strongly Agree ◽  
Public Accountant

The purpose of this research is to examine accounting students in Batam City who have a career in public accounting which measures the accounting profession, job requirements and work results of accountants. The extent to which the accounting profession, accountants work requirements and accountants' work results affect the career choices of students in the public accounting sector. This study used a sample of 302 undergraduate students from various universities in Batam City. The questionnaire consists of 20 question items which use a Likert scale ranging from strongly disagree to strongly agree. The distribution of the questionnaire was completed in mid-October 2021. The data used descriptive statistics that had been collected were entered and analyzed using the SPSS version 26 program. Public accountants have a working profession so that researchers found that accounting was rated higher by respondents in relation to the work of accountants as a profession. boring, routine and monotonous. Then, in connection with the choice of a career as a public accountant from Batam City students, it shows that the choice of a career as a public accountant is more dominant than other accountants such as corporate accountants. Thus, corporate policy makers should help to make the corporate accounting sector more attractive and educate students about the importance of being a financial steward in a company. Despite the limitations of the study it would still be useful for policy makers to create new or new ideas and modify their strategies with respect to the problems identified

Cook and Thomas, LLC: Balancing Auditor Liability, Client Confidentiality, and the Public Interest

2015 ◽  
Vol 32 (1) ◽  
pp. 17-32 ◽  
Author(s):  
Kelsey R. Brasel ◽  
Brian E. Daugherty
Keyword(s):  
Critical Thinking ◽  
Public Interest ◽  
Public Accounting ◽  
Difficult Situation ◽  
Auditor Liability ◽  
Accounting Firm ◽  
The Public ◽  
Optimal Balance

ABSTRACT In this case students are asked to assume the role of Alex Trifold, CPA, an audit partner for the public accounting firm, Cook and Thomas, LLC, who holds going concern information about an audit client that may impact other entities audited by Cook and Thomas. The case study illustrates how adherence to auditing standards may place auditors in a difficult situation when balancing the auditor's risk of litigation, the clients' rights to confidentiality, and the auditor's duty to the public. Additionally, the case provides exposure to prior litigation cases against auditors with unfavorable outcomes when auditors chose to protect their client's confidentiality, and, conversely, in cases where auditors chose to protect the greater public interest. The case requires students to engage in critical thinking by providing their viewpoints as to the optimal balance of limiting auditor liability, adhering to client confidentiality requirements, and simultaneously serving the public interest. The case study is appropriate for both undergraduate and graduate auditing courses.

The Joint Effect of Unfavorable Supervisory Feedback Environments and External Mentoring on Job Attitudes and Job Outcomes in the Public Accounting Profession

2015 ◽  
Vol 27 (2) ◽  
pp. 53-76 ◽  
Author(s):  
Derek W. Dalton ◽  
Ann Boyd Davis ◽  
Ralph E. Viator
Keyword(s):  
Job Satisfaction ◽  
Turnover Intentions ◽  
Joint Effect ◽  
Role Clarity ◽  
Job Outcomes ◽  
Negative Effects ◽  
Accounting Profession ◽  
Public Accounting ◽  
The Public ◽  
Mentoring Support

ABSTRACT Unfavorable supervisory feedback environments (SFEs) occur when supervisors provide unhelpful, inconsistent, and inconsiderate feedback. This study investigates whether external mentoring (i.e., mentoring support that is provided by a superior who is external to the supervisor-subordinate relationship) can moderate (i.e., attenuate) the adverse effects of unfavorable SFEs that occur in the accounting profession. Based on a survey of 421 public accounting professionals, the results indicate that unfavorable SFEs are associated with lower job satisfaction and role clarity, which, in turn, lead to lower organizational commitment and higher turnover intentions. More importantly, the results also show that external mentoring moderates (i.e., attenuates) the negative effects of unfavorable SFEs on both role clarity and job satisfaction. Implications for research and practice are discussed.

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