Certified Public Accountants: Trustworthy or Not
rules while remaining technically legal. While students must be acquainted with professional codes of conduct as part of their preparation for a career, most researchers on ethics do not consider such material to be sufficient grounding in ethical training (Fulmer and Cargile 1993:Adams et al.1995). A few years ago the American Institute of Certified Public Accounts (AICPA), the largest CPA membership organization in the world, decided that starting in the year 2000, new members would have to have 150 semester hour of college credits (5 Years) instead of the present four years to become a member (McGee). On the surface that does not appear to any big deal. No one has to become an AICPA member to practice public accounting or to be a CPA. But, there are several problems with this. The most obvious is that the major group harmed is the students (or parents), who must cough up another $10,000 or $20,000 for a fifth year of education. Then there is the added cost of not having a job for the extra year it will take to complete the fifth year, so there is another $25,000 - $30,000. But that is not all. The segment to the student population most harmed by this insane policy is the segment least likely to be able to pay for a fifth year - blacks, Hispanics, low-income students of whatever persuasion. Poor people and minorities, along with rest of us, will have to face an even higher barrier to entry into the accounting profession.
As mentioned earlier is additional education only going to make accountants more proficient at learning techniques to get around laws, perhaps using unethical behaviors? And at the same time force extra barriers on many disadvantaged people hoping to make an honest living? This may be only speculation of the could and could nots of what may happen, but is still a serious matter for thought. What are the consequences of these unethical behaviors?
Accountants can be held liable for damages to clients and to third parties, plus may also be held criminally liable for violation of securities, tax, and other laws. For criminal violations, the convicted may be fined and imprisoned. Wrongful conduct may also result in the issuance of an injunction, which bars him from doing the same acts in the future. In addition, his wrongful conduct may be the subject of administrative proceedings by the Securities and Exchange Commission and state licensing boards. An administrative proceeding may result in the revocation of an accountant's license to practice or the suspension from practice. Finally disciplinary proceedings may be brought against an accountant by professional societies such as the AICPA. Most states have statutes imposing criminal penalties on accountants who willfully falsify financial statements or other reports in fillings under the state securities laws and who willfully violate the state securities laws or aid and abet criminal violations of these laws by others.
In conclusion, accountants have great responsibilities to their clients and to society. Pertaining to an accounting [next page]