Enhancing perceptions of auditor independence

Financial statement users must believe that external auditors are free from management control, or users will doubt the verity of auditors' representations. Although U.S.-based auditing firms claim they are independent of their corporate clients, research has demonstrated that many individuals and groups perceive the situation otherwise. A proposal for enhancing perceptions of auditor independence is offered in this article. The proposal calls for an auditor-administered educational program, complemented by corporate audit committee involvement to lend credibility to auditors' claims. Michael A. Pearson is Associate Professor of Accounting at Kent State University. He received B.S. and M.B.A. degrees from Northeastern University and earned a D.B.A. degree at Kent State. Dr. Pearson is a Certified Public Accountant (CPA) and also holds the Certificate in Management Accounting (CMA). He has written numerous articles for academic and professional journals, and he is currently Associate Editor of The Ohio CPA Journal.     

Gender differences in determining the ethical sensitivity of future accounting professionals

This paper explores possible connections between gender and the willingness to tolerate unethical academic behavior. Data from a sample of 285 accounting majors at four public institutions reveal that females are less tolerant than males when questioned about academic misconduct. Statistically significant differences were found for 17 of 23 questionable activities. Furthermore, females were found to be less cynical and less often involved in academic dishonesty. Overall, the results support the finding of Betz et al. (1989) that the gender socialization approach dominates the structural approach. Elsie Coker Ameen is an associate professor and chair of the Department of Business at Coker College. Professor Ameen has published articles in The Journal of Business Finance and Accounting, Auditing: A Journal of Practice and Theory, Review of Financial Economics, and other journals. Daryl M. Guffey is an assistant professor at East Carolina University. He joined the faculty at East Carolina University in 1995. Dr. Guffey has published several articles in such journals as The Financial Review, Journal of Business Finance and Accounting, Review of Financial Economics, Quarterly Journal of Business and Economics, and The Accounting Educators' Journal. Professor Guffey's research has been supported by a grant from the Ernst & Young Foundation. Jeffrey J. McMillan, Jr. is an associate professor of accounting at Clemson University. He joined the faculty of Clemson University in 1990. Dr. McMillan has published articles in such journals as The Accounting Review, Advances in Accounting, Issues in Accounting Education, and The CPA Journal.     

Moral Judgment and Causal Attributions: Consequences of Engaging in Earnings Management

Recent, well-publicized accounting scandals have shown that the penalties outsiders impose on those found culpable of earnings management can be severe. However, less is known about how colleagues within internal labor markets respond when they believe fellow managers have managed earnings. Designers of responsibility accounting systems need to understand the reputational costs managers impose on one another within internal labor markets. In an experimental study, 159 evening MBA students were asked to assume the role of a manager in a company and respond to a scenario in which another manager (the target manager) has the opportunity to engage in earnings management. Participants provided causal attributions, assessed the morality of the target manager, and indicated whether they would change their judgments about the target manager’s reputation. The study manipulated three between-subjects factors: (1) whether the target manager chose to engage in earnings management, (2) whether the company’s budgetary control system was rigid or flexible, and (3) whether the target manager’s work history was average or above average. We found that causal attributions are affected more by the budgetary systems when the target did not manage earnings than when the manager did. We also found that morality judgments were significantly associated with the target manager’s behavior, but not with the budgetary system. In addition, participants’ judgments about the target manager’s reputation were more strongly associated with morality judgments than with causal attributions. We discuss implications of the role of reputation in management control systems design. Steven E. Kaplan received his B.S. degree from Arizona State University and his graduate degrees from the University of Illinois, Champaign-Urbana. Professor Kaplan has published in numerous academic and professional journals, including Advances in Accounting, Cost and Management, Journal of Accounting Research, The Accounting Review, National Tax Journal, Management Accounting, and Auditing: A Journal of practice and Theory. His current research focuses primarily on auditor judgment. He is a member of the American Accounting Association. Professor Kaplan has two daughters, Leah and Serena. He enjoys trout fishing and bowling. James C. McElroy is University Professor and the Bill and Liz Goodwin Faculty Fellow in the Department of Management at Iowa State University. He has a Ph.D. from Oklahoma State University, an MBA from the University of South Dakota and a B.S. from Jamestown College. Dr. McElroy has published over 55 refereed articles in a variety of journals including the Academy of Management Journal, Academy of Management Review, Journal of Management, Journal of Applied Psychology, Journal of Marketing, Journal of Vocational Behavior, Journal of Organizational Behavior, Organizational Behavior and Human Performance, Journal of Educational Computing Research and Computers in Human Behavior. He serves on the editorial review boards of the Journal of Vocational Behavior, Journal of Labor Research, and Journal of Managerial Issues. His current research deals with personality and computer use, self handicapping behavior, and technology as a form of object language. Susan P. Ravenscroft is the Roger P. Murphy Professor Accounting and currently teaches managerial accounting and governmental and non-profit accounting. She and Professor Steve Kaplan have won the Glen McLaughlin Award for Research in Accounting Ethics. She has a PhD from Michigan State University. Dr. Ravenscroft’s research interests include ethics, pedagogical issues, and the social role of accounting information. Charles B. Shrader is a Bill and Liz Goodwin professor of Management in the College of Business at Iowa State University. His PhD and MBA degrees are from Indiana University. His current research interests include the relationships of strategy, diversity, and corporate social responsibility with organizational performance.     

A Critical Analysis of the Accounting Industry’s Voluntary Code of Conduct

The public accounting industry’s voluntary code of conduct in the United States is the American Institute of CPA’s Code of Professional Conduct. Based on our analysis, we conclude that the accounting industry’s current code is limited in its ability to serve the public interest in three respects. Specifically, the code is input-based, requires no third-party attestation of compliance with the code, and contains no public reporting process of code compliance/noncompliance at the accounting firm level. We propose that the accounting profession should reorient its largely input-based Code of Professional Conduct to include output-based performance measurements. We also conclude that third-party attestation of compliance with the profession’s code would help to promote compliance. Finally, we maintain that the accounting industry should initiate a public reporting process at the individual accounting firm level. Such a requirement would add a degree of public accountability as to whether a firm complies or fails to comply with the industry’s voluntary code of conduct. John D. Neill, Ph.D., CPA, is a professor of accounting at Abilene Christian University and has previously published articles in numerous journals including the Journal of Business Ethics, Journal of Accounting Literature, Accounting Horizons, Advances in Accounting,theFinancial Analysts Journal,and theJournal of Accounting, Ethics, and Public Policy. O. Scott Stovall, Ph.D., is an assistant professor of accounting at Abilene Christian University and has published articles in the Journal of Business Ethics, Management Accounting Quarterly, and Cases from Management Accounting Practice. Darryl L. Jinkerson, Ph.D., is an assistant professor of management and chair of the Management Sciences Department at Abilene Christian University and was formerly the Director of Assessment and Measurement for Arthur Andersen.     

The Normative Impact of CPA Firms,Professional Organizations,and State Boards on Accounting Ethics Education

Accounting educators are in the midst of creating new opportunities for students to enhance their abilities to recognize ethical dilemmas, establish criteria by which to make ethical decisions, and establish support mechanisms and strategies to facilitate their ethical decision-making. CPA firms, professional organizations and state boards of accountancy are co-operating to increase requirements for ethics education for candidates taking the CPA exam. The current situation is confusing and sub-optimal regarding the use of precious learning time in college programs. A new dialogue between the three stakeholders, creative learning approaches, and additional resources can lead to a more consistent and optimal learning paradigm regarding the ethics education of accountants. Research evaluating the effectiveness of various approaches is needed to effectively apply limited resources in an area critical to the reputation capital of the accounting profession. Kevin holds a B.B.A. from Western Michigan University and a Ph.D. from Michigan State University, along with being a CPA. He has been at Notre Dame since 1978, and served as the first Arthur Young Faculty Fellow in Taxation from 1983 to 1985. From August 1985, to June 1986, Kevin worked as a faculty resident in the Arthur Andersen & Company practice office in Chicago. He was Assistant Department Chair from 1991 to 1995 and the University Ombudsperson for discriminatory harassment from 1999 to 2001. In 1997, he organized and chaired a national conference “What Works Well in Accounting Education” held at Notre Dame. He taught in the London Program for the fall, 1998 semester. Kevin was the Faculty Director of the Master of Nonprofit Administration Program from 2001 to 2005. He teaches accounting courses – primarily tax courses. Recently Kevin has developed new elective courses at the undergraduate and graduate levels on “Ethics in Accounting.” His publications include articles in The Accounting Review, TAXES - The Tax Magazine, The CPA Journal, The Review of Taxation of Individuals, Tax Ideas, Massachusetts CPA Review, The Journal of the American Taxation Association, New Accountant, the Journal of Accounting Education, Taxation for Accountants, and The Tax Adviser. He also was co-author of a Bureau of National Affairs tax management portfolio on Cash and Accrual Methods of Accounting and the book Programmed Guide to Tax Research. He is on the Editorial Review Board of Issues in Accounting Education. An article he authored on “The Normative Impact of CPA Firms, Professional Organizations and State Boards on Accounting Ethics Education” will be published in the Journal of Business Ethics in summer, 2006. In 1989, he and his wife, Kathy, were given the Grenville Clark Award by the University for “Voluntary activities serving to advance the causes of peace and human rights.” Kevin and his wife, Kathy, have eight children, four of whom are adopted special needs children. Kevin and Kathy have been leaders in Worldwide Marriage Encounter ministry for many years.     

Public interest reports as a medium for corporate disclosure: The case of General Motors

We examined the public interest reports of General Motors from 1971 to 1990 and presented the contents thereof herein. The principal areas disclosed by GM during those years that are discussed in this paper were minorities, women, and employment issues, energy and the environment, international operations, automotive safety, and philanthropic activity. The purpose of this study was to examine the public interest report as a vehicle through which a firm might disclose information in the public interest. We concluded that there were at least three principal forces driving GM's disclosures. They included public attention focused on, potential costs associated with, and the relative subjectivity of an issue.In reading their public interest reports, it became clear that GM is socially responsive in matters of public interest. Whether they are socially responsible is a judgment not within the scope of this study. However, we do not preclude the possibility that the report may serve as a vehicle which would build a certain momentum in public responsibility, and thus partially drive decisions made by management in social issues. David Malone is an Associate Professor of Accounting at the University of Idaho. Dr. Malone's research interests are primarily in corporate social responsibility and public interest accounting. His research has been accepted for publication in journals which include Business & Professional Ethics Journal, Journal of Accounting, Auditing & Finance, Kent/Bently Journal of Accounting and Computers, Journal of Computer Information Systems, Oil and Gas Tax Quarterly, Petroleum Accounting and Financial Management Journal, and Journal of Education for Business. Robin W. Roberts is the union Pacific/Charles B. Handy Professor of Accounting at Iowa State University. Dr. Roberts' research include public sector and public interest accounting and auditing. His research has been accepted for publication in such journals as Accounting, Organizations, & Society, Advances in Accounting, Business & Professional Ethics Journal, Journal of Accounting Research, and Research in Governmental and Nonprofit Accounting.     

A critical examination of the AICPA Code of Professional Conduct

The American Institute of Certified Public Accountants (AICPA) is responsible for the Code of Professional Conduct that governs the actions of CPAs. In 1988, the Code was revised by the AICPA, but a number of issues still remain unresolved or confounded by the new Code. These issues are examined in light of the profession's stated commitment to the public good, a commitment that is discussed at length in the new Code.Specifically, this paper reviews the following issues: (1) client confidentiality and whistleblowing, (2) limited liability, and (3) auditor independence. We argue that, in each of these areas, the AICPA promotes a position that is potentially harmful to the public good.Allison Collins is an Assistant Professor in the Department of Accounting and Taxation at Colorado State University. She has been a Certified Public Accountant since 1982. She has published previously inJournal of Business Ethics.Normal Schutz is an Associate Professor in the Department of Accounting and Taxation at Colorado State University. He has published in such journals asJournal of Business Ethics, EDP Auditor Journal andInternal Auditor.     

Whistleblowing and management accounting: An approach

In this paper, we consider the licensing of and codes of ethics that affect the accountant not in public accounting, the potential for an accountant not in public accounting encountering an ethical conflict situation, and the moral responsibility of such accountant when faced with an ethical dilemma. We review an approach suggested by the National Association of Accountants for dealing with an ethical conflict situation including that association's position on whistleblowing. We propose another approach based on the work of De George (1981), in which both internal and external whistleblowing are possible alternatives, for use by management accountants in an ethical conflict situation. Finally, we consider the implications of our analysis for management accounting. While most of the analysis centers on management accountants, we note the likely applicability of the analysis to accountants in the public sector. Dr. Stephen E. Loeb is Professor and Chairman of Accounting and the Ernst and Young Alumni Research Fellow at the University of Maryland at College Park. He is the author or co-author of a number of articles relating to accounting and ethics that have appeared in journals such as The Accounting Review, the Journal of Accounting Research, the Journal of Accountancy, and The Government Accountants Journal. Dr. Loeb is co-editor of the Journal of Accounting and Public Policy.Dr. Suzanne N. Cory is Associate Professor of Accounting at California State University, San Bernardino. A good deal of the work on this paper was done while Dr. Cory was a faculty member at The George Washington University.We are indebted to Lawrence A. Gorden, Allen G. Schick, Jere Francis, Lee Preston, Stanley W. Davis and two anonymous reviewers for their comments on earlier drafts of this paper. Any errors are our own.     

Auditor independence deficiencies & alleged audit failures

Some critics of the accounting/auditing profession in the United States claim that independence-related quality control problems are the cause of an increased number of alleged audit failures. Certified public accountants (CPAs) were queried regarding independence impairment in their profession. Questionnaire results indicate a number of CPAs believe independence deficiencies exist, and some CPAs admit to personal independence impairment. Michael A. Pearson is Associate Professor of Accounting at the Graduate School of Management and College of Business Administration, Kent State University. Additionally, he is the Editor of The Ohio CPA Journal. Professor Pearson is a Certified Public Accountant (CPA) and a Certified Management Accountant (CMA). He has written numerous articles including, Enhancing Perceptions of Auditor Independence, Journal of Business Ethics 4 (1985), 53–56.     

The Social Norms of Tax Compliance: Evidence from Australia,Singapore, and the United States

Tax compliance is a concern to governments around the world. Prior research (Alm, J. and I. Sanchez: 1995, KYKLOS 48, 3–19) has attributed unexplained inter-country differences in compliance rates to differences in social norms. Economics researchers studying tax compliance in the United States (U.S.) (see for example J. Andreoni et al.: 1998, Journal of Economic Literature 36, 818–860) have called for more attention to social (as opposed to economic) influences on tax compliance. In this study, we extend this prior research by explicitly examining the role of social norms [Cialdini, R. and M. Trost: 1998, The Handbook of Social Psychology (Oxford University Press, New York)] on tax compliance in three different countries. We test our research hypotheses using a hypothetical compliance scenario, which was administered in Australia, Singapore, and the U.S. There were differences in compliance rates and social norms among the three countries. Factor analysis of the social norm questions identified three distinct social norm constructs. Two of these factors were significant in explaining tax compliance behavior. The first and most influential factor was taxpayers’ own personal moral beliefs, along with the beliefs of those close to them (e.g., friends and important others). The second significant factor represented societal views of proper behavior. We conclude that social norms help to explain tax compliance intentions and why tax compliance rates are higher than would be predicted by strictly economic models. Donna D. Bobek is an Associate Professor in the Kenneth G. Dixon School of Accounting at the University of Central Florida. Her research focuses on taxpayer and tax professional judgment and decision-making, with an emphasis on ethical decision-making. Donna has published in a number of academic journals including Accounting, Organizations & Society, Behavioral Research in Accounting, the Journal of the American Taxation Association, Advances in Taxation and Advances in Behavioral Accounting Research. John T. Sweeney is the Ted Saldin Distinguished Professor of Accounting and the Chair of the Department of Accounting at Washington State University. His research interests include accounting ethics and organizational justice. He has published in a number of accounting research journals, including Accounting, Organizations, & Society, The Accounting Review, Behavioral Research in Accounting, the Journal of Accounting & Public Policy, the Journal of Business Ethics, and Research on Accounting Ethics. Robin W. Roberts is the Al and Nancy Burnett Eminent Scholar and Director of the Kenneth G. Dixon School of Accounting at the University of Central Florida. His recent research focuses on ethics and regulation in the accounting profession and on corporate social responsibility. Robin has published in a number of academic journals including Accounting and the Public Interest, Accounting, Organizations & Society, Advances in Accounting, Auditing: A Journal of Practice & Theory, Critical Perspectives on Accounting, Journal of Accounting and Public Policy, Journal of Accounting Research, Journal of Business Ethics, Public Budgeting, Accounting & Financial Management, and Research in Governmental and Nonprofit Accounting.     

Historical perspectives: Development of the codes of ethics in the legal,medical and accounting professions

Members of the legal, medical and accounting professions are guided in their professional behavior by their respective codes of ethics. These codes of ethics are not static. They are ever evolving, responding to forces that are exogenous and endogenous to the professions. Specifically, changes in the ethical codes are often due to economic and social events, governmental influence, and growth and change within the professions. This paper presents an historical analysis of the major events leading to changes in the legal, medical and accounting codes of ethics.Jeanne F. Backof is the Accounting Manager, McDonogh School, Baltimore, Maryland. She is a CPA in Maryland and serves as chairperson of the Maryland Association of CPA's Academic Relations and Members in Education Committees.Charles L. Martin Jr. is Professor of Accounting, Towson State University, Towson, Maryland. He is a CPA in Maryland and has published numerous articles focusing on accounting education, ethical issues in accounting, strategic planning by public accounting firms, and financial auditing.     

Cultural and socioeconomic constraints on international codes of ethics: Lessons from accounting

This paper provides a framework for the examination of cultural and socioeconomic factors that could impede the acceptance and implementation of a profession's international code of conduct. We apply it to the Guidelines on Ethics for Professional Accountants issued by the International Federation of Accountants (1990). To examine the cultural effects, we use Hofstede's (1980a) four work-related values: power distance, uncertainty avoidance, individualism, and masculinity. The socioeconomic factors are the level of development of the profession and the availability of economic resources. We evaluate the applicability and relevance of the accounting guideline, and discuss the implications for accounting and other professions.Jeffrey R. Cohen is Assistant Professor of Accounting at Boston College. He is a CMA and a KPMG Peat Marwick Faculty Fellow. His articles have appeared in theJournal of Accounting Research, Decision Sciences, The Organizational Behavior Teaching Review, andThe International Journal of Accounting. His work on ethics has appeared inJournal of Business Ethics, Issues in Accounting Education, Management Accounting andThe CPA Journal.Laurie W. Pant is Associate Professor of Accounting at Suffolk University. She holds an MBA and DBA and an M.Ed. She is a CMA and serves on the editorial board ofIssues in Accounting Education. Her articles have appeared inJournal of Business Ethics, Issues in Accounting Education, Management Accounting, The Organizational Behavior Teaching Review, andThe International Journal of Accounting.David J. Sharp is Assistant Professor of Accounting at the University of Western Ontario. He received his Ph.D. and M.Sc. He is an ACMA and serves on the editorial board ofJournal of International Accounting Auditing and Taxation. His articles have appeared in theMidland Corporate Finance Journal, Sloan Management Review, andThe International Journal of Accounting.     

Do the Numbers Add Up to Different Views? Perceptions of Ethical Faculty Behavior Among Faculty in Quantitative Versus Qualitative Disciplines

Faculty across a wide range of academic disciplines at 89 AASCB-accredited U.S. business schools were surveyed regarding their perceptions of the ethical nature of faculty behaviors related to undergraduate course content, student evaluation, educational environment, research issues, financial and material transactions, and social and sexual relationships. We analyzed responses based on whether instruction in the academic discipline focused mainly on quantitative topics or largely on qualitative issues. Faculty who represented quantitative disciplines such as accounting and finance (n = 383) were more likely to view behaviors such as selling complimentary textbooks and grading on a strict curve as more ethical than faculty representing more qualitative disciplines such as management and marketing (n = 447). In contrast, faculty in quantitative disciplines were more likely to view behaviors such as showing controversial media and bringing up sexual or racial charged matters as less ethical than their counterparts. Whereas these differences may be attributed to the respondents’ academic backgrounds, the large level of agreement on ethical behaviors raises questions about the growing influence of business disciplines that operate within more unified research and teaching paradigms. Linda Kidwell (PhD, Louisiana State University) is an associate professor in the Accounting Department at the University of Wyoming where she teaches auditing as well as accounting ethics. Her research interests include academic ethics, auditing ethics, and governmental auditing. Her research has been published in the Journal of Business Ethics, Teaching Business Ethics, CPA Journal, Journal of Accounting and Public Policy and elsewhere. She has taught in the United States, Australia, and Canada. She has also been a frequent faculty mentor in the National Conference on Ethics in America held annually at the United States Military Academy (West Point). Roland Kidwell (PhD, Louisiana State University) is an associate professor in the Management and Marketing Department at the University of Wyoming where he teaches courses in new ventures, human resource management and general management. His current research interests include ethical issues involving family businesses and new ventures, social entrepreneurship, and workplace deviance such as withholding effort (free riding, shirking, social loafing) in organizational contexts. He is co-editor of a book of readings and cases, Managing Organizational Deviance (2005, Sage), and his research has appeared in Academy of Management Review, Journal of Business Ethics, Journal of Management, Journal of Business and Psychology and elsewhere.     

A validation and extension of a multidimensional ethics scale

Reidenbach and Robin (1988, 1990) proposed and refined a multidimensional ethics scale. This study replicates and extends their work by examining the generalizability of the scale beyond marketing to accounting, and to subjects from across the United States and other countries. Results indicate that, in general, the scale holds for this different sample and context. However, an additional utilitarian construct emerged in the current study as important for accounting academics in their ethical decision-making. We also found that when we refined Reidenbach and Robin's measure of intention to make a particular choice, a social desirability bias or halo effect was identified. Methodological implications for business ethics research are also presented.Jeffrey R. Cohen is Associate Professor of Accounting at Boston College. He is a C.M.A. and a KPMG Peat Marwick Faculty Fellow. His articles have appeared in theJournal of Accounting Research, Decision Sciences andThe Organizational Behavior Teaching Review. His work on Ethics has appeared inJournal of Business Ethics, Issues in Accounting Education, Management Accounting, andThe CPA Journal.Laurie W. Pant is Associate Professor of Accounting at Suffolk University. She holds an M.B.A. and a D.B.A. and an M.Ed. She serves on the editorial board ofIssues in Accounting Education. Her articles on Ethics have appeared inJournal of Business Ethics, Issues in Accounting Education, Management Accounting andThe Organizational Behavior Teaching Review.David Sharp is Assistant Professor of Accounting at University of Western Ontario. He holds a Ph.D. and an M.Sc. He serves on the editorial board of theJournal of International Accounting, Auditing and Taxation. His articles have appeared inThe Midland Corporate Finance Journal andSloan Management Review.     

Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports

Islamic Banks (IBs) are considered as having ethical identity, since the foundation of their business philosophy is closely tied to religion. In this article, we explore whether any discrepancy exists between the communicated (based on information disclosed in the annual reports) and ideal (disclosure of information deemed vital based on the Islamic ethical business framework) ethical identities and we measure this by what we have termed the Ethical Identity Index (EII). Our longitudinal survey results over a 3-year period indicate the overall mean EII of only one IB out of seven surveyed to be above average. The remaining six IBs suffer from disparity between the communicated and ideal ethical identities. We further found the largest incongruence to be related to four dimensions: commitments to society; disclosure of corporate vision and mission; contribution to and management of zakah, charity and benevolent loans; and information regarding top management. The results have important implications for communication management if IBs are to enhance their image and reputation in society as well as to remain competitive. Roszaini Haniffa is a Senior Lecturer and Head of Accounting and Finance at the Bradford University School of Management. She holds a PhD from Exeter University and has published papers in Abacus, Journal of Accounting and Public Policy, Journal of Business Finance and Accounting and other journals. Her research interests focus on social responsibility reporting, corporate governance, international accounting and the Islamic perspective of accounting. Ros has reviewed papers and is a member on the editorial board of several journals. Mohammad Hudaib is a Lecturer in Accounting at the Bradford University School of Management and holds a PhD from Essex University. He has previously taught at Exeter University and prior to his teaching career, was an auditor in Saudi Arabia. He has published papers on auditing and corporate governance in Journal of Business Finance and Accounting. His current research interests include auditing, Islamic perspective of accounting, accounting theory and ethics.     

Ethics in accounting education: What is really being done

Recent developments in the business world have caused the academic community to address the coverage of ethics in the accounting curriculum. This study surveyed accounting faculty to: (1) examine perceptions about ethics coverage in the undergraduate accounting courses; (2) identify teaching methods used to include ethics in the undergraduate accounting courses, the perceived effectiveness of those methods and the amount of time spent on ethics coverage; and (3) to identify problems encountered in including ethics in accounting courses. The study found that although a large majority of the professors surveyed (77%) said they include ethics, 69% felt that there was a need for more ethics coverage. Also, the study revealed that while the lecture method was the most commonly used method, the written case was deemed the most effective method. The average time spent covering ethics was a little over 3 hours per course. The most significant problems encountered by faculty who include ethics in their undergraduate accounting courses was not enough time and lack of appropriate ethics materials.Edward E. Milam is a Professor at Mississippi State University and former Dean of the School of Accountancy at the University of Mississippi. Dr. Milam has authored several books on estate taxation and has articles published in several journals includingEstate Planning, Trusts and Estates, Taxation for Accountants, andThe Financial Executive. Currently, Dr. Milam is serving on the Board of Directors of the Mississippi Tax Institute.Frances M. McNair is an Associate Professor at Mississippi State University. Dr. McNair has authored a book in tax practice and has articles published in several journals including theJournal of Accountancy, Taxation for Lawyers, andThe Practical Accountant.     

Ethics Programs, Perceived Corporate Social Responsibility and Job Satisfaction

Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. Sean Valentine (D.B.A., Louisiana Tech University) is an Associate Professor of Management in the college of Business at the University of Wyoming. His teaching and research interests include business ethics, organizational behavior, and human resource management. He has published in journals such as Behavioral Research in Accounting, Journal of Business Research, Journal of Personal Selling & Sales Management, and Journal of Business Ethics. Gary Fleischman (Ph.D., Texas Tech University) is an Associate Professor and is the McGee Hearne and Paiz Faculty Scholar in Accounting at the University of Wyoming. His teaching expertise is in accounting and entrepreneurship and his research interests are in business ethics and behavioral business research. He has published in journals such as Behavioral Research in Accounting, The International Journal of Accounting and Journal of Business Ethics.     

Deceptive nature of Dial-a-Porn commercials and public policy alternatives

This research investigates consumers' perceptions of claims made in Dial-a-Porn commercials. The empirical findings support the view that some of the claims are deceptive. Based on research findings, preliminary public policy guidelines are suggested.Shaheen Borna is an Associate Professor, Department of Marketing, Ball State University. He received his DBA. His articles have appeared in theJournal of Business Ethics, Journal of Health Care Marketing, British Journal of Criminology, Journal of Accountancy, Akron Business and Economic Review, andProceedings of the American Marketing Associations.Joseph Chapman is an Assistant Professor, Department of Marketing, Ball State University. He received his Ph.D. His research interests are in the areas of personal selling, promotion and business ethics. His articles have appeared in theJournal of Personal Selling and Sales Management, Marketing Education Review, andJournal of Marketing Theory and Practice.Dennis Menezes is an Associate Professor, Department of Marketing, University of Louisville, Ky. He received his Ph.D. His articles have appeared in numerous journals includingJournal of Marketing Research.     

A reexamination of the Internal Auditors' Code of Ethics

This study empirically examined the views of Certified Internal Auditors (CIAs) concerning the role of Code of Ethics for members of the Institute of Internal Auditors. It is a continuation of an earlier study which examined the usefulness of the Code to CIAs. Among the questions asked were what is the primary reason for the Code of Ethics, how useful is it, have you used it, should more enforcement actions be taken against members who violate the Code, and what are the legal and moral responsibilities of the CIA to report serious ethical violations, e.g., environmental pollution, to outsiders when top management and the board of directors are aware of the matter but are not doing anything to correct it. The results indicate strong support for the Code, its enforcement, and use as an instrument to encourage the internal flow of ethical behavior by embers and others.Philip H. Siegel is currently the Fiesta Mart Professor of Accounting at the University of Houston-Downtown. Formerly the Coopers & Lybrand Professor at San Francisco State University, Dr. Siegel received his Ph.D. in 1985. He holds CPA certification in Florida.John O'Shaughnessy is Associate Professor at San Francisco State University. Currently the Director of the Internal Audit Program at SFSU, Dr. O'Shaughnessy received his Ph.D. in 1990. He holds CPA and CIA certification.John T. Rigsby is Associate Professor at Mississippi State University. Author of numerous papers published in leading academic journals, Dr. Rigsby received his Ph.D. in 1986. He holds CPA certification.