Accounting ethics Feed

“Excellence in Accounting Ethics Education Award”

Excellence in Accounting Ethics Education Award Announced by the Public Interest Section of the American Accounting Association The intent of this award is to recognize new pedagogy for teaching ethics to accounting students. A monetary award of $1,000 and a plaque will be presented at the annual Ethics Symposium, sponsored... Read more →


Do “Modernized” Independence Rule Changes Protect Investor Interests?

Objectivity and Impartiality Replaces the Strict Application of Independence Rules In June 2021, the Securities and Exchange Commission (SEC) made amendments effective for certain rules regarding auditor independence requirements (known as Rule 2-01 of Regulation S-X). The intention behind these amendments is to modernize the SEC’s rules governing auditor independence... Read more →


Trump v Mazars: You Decide

Professional Obligations of Accountants to Clients You may have heard that Donald Trump and the Trump Organization’s accountant, Mazars USA, split up after Mazars sent a letter dated February 9, 2022 to the Trump Organization. The letter was included in a court filing and said that “the Statements of Financial... Read more →


Is the PCAOB Protecting the Public Interest?

Examining the POGO Report and Other Matters It’s been twenty years since the Public Company Oversight Board (PCAOB) was created by the Sarbanes Oxley Act of 2002 (SOX). This is a good time to evaluate the mandate given to the board, it’s work during that period, and whether it is... Read more →


Fake it Until You Make it: The Story of Elizabeth Holmes and Theranos

A Cautionary Tale for Silicon Valley Fake it until you make it is an expression that amply describes what happened to Theranos. It also characterizes the actions of the company’s founder and CEO, Elizabeth Holmes. The idea being that by imitating confidence, competence, and an optimistic mindset, Holmes was able... Read more →


Is it Time to Mandate ESG Disclosures?

Climate Change: The New Kid on the Block information to make informed judgments about the financial condition of companies. This includes events that create possible future obligations based on the outcome of current events where it is not known with certainty whether the outcome will create a liability for a... Read more →


Do Dark Triad Personalities Explain Aggressive Accounting?

Looking for the Red Flags of Fraudulent Financial Reporting I recently read an article that describes the results of a study that contends in some company bosses are being placed in a position of power when the company needs “aggressive earnings reports”. In such cases, recruiters are more likely to... Read more →


Cheesecake Factory Sanctioned by the SEC over its Disclosures About Covid-19

Accounting and Ethics Guidance Overview In the first enforcement action of its kind, the U.S. Securities and Exchange Commission says The Cheesecake Factory falsely claimed its restaurants were "operating sustainably" during the pandemic and it failed to disclose the whole truth about the impact on its business. According to the... Read more →


What Should be the Goals of Ethics Education?

Does Teaching Ethics Do Any Good? Does teaching ethics work? If teaching ethics does no good, then why are we doing it? The answer may lie in knowing what are (or should be) the goals of teaching ethics. First, let’s discuss what ethics education is not and should not be... Read more →


Is it Time to Reconfigure the PCAOB?

What is the Public Interest? It’s been about 18 years since Congress created the Public Company Accounting Oversight Board in response to widespread fraud in the financial statements of the likes of Enron and WorldCom. Given the high rate of audit deficiencies identified in PCAOB inspections of public company audits,... Read more →