'The Public Perception of CPAs in Today’s Society\r'

'This paper will discuss the everyday light of certified public accountants in todays society, pitf eachs that they whitethorn encounter, methods to pr howevert some of these negative behaviors and consequences they may face should they fall short. Most â€Å"Who Do You Trust? ” surveys rank politicians, lawyers and used car salesmen at the bottom and certified public accountants at the top. That is because the CPA barter has a squeaky clean shapeâ€anal-retentive little wimps who wear thick glasses and can non educate a date. CPAs ar known and respected for their h championsty.\r\nThe trade that goes out of its way to project that image, and thither is a certain amount of truth to it. Not all accountants be anal-retentive little wimps who cannot read a date. much of them ar quite an articulate. Some atomic number 18 quite lovely, in some schools, more than half of the account majors argon women. Also, not all CPAs are squeaky clean and respected for their h onesty. Some are quite dishonest and are putting a b omit mark on the image of the wide-cut profession. There is one area where the CPA profession has fallen short of protecting the public interest.\r\nThe popular duty that accountants owe to their clients and the other persons who are stirred by their start outions is to â€Å"exercise the accomplishment and care of the normally prudent accountant” in the same circumstances. dickens elements compose the general duty of performance: skill and care. Another element and responsibility is owed to clients and other persons, that is that accountants should accompany a standard of ethical or kind responsibility. One set of difficulties concerns ethics educations ability to inform the chosen values and to make them stick after(prenominal) the educational process is completed.\r\nInstruction in accountancy ethics is directed at people whose character-or lack there-of-has largely been formed by the time the pedagogics occ urs. Although such instruction should increase the moral cognizance of those who are already predisposed to listen, its effect on the basically self-interested, indifferent, or unethical is questionable. Even those who are positively influenced by ethics instruction, moreover, may electrostatic be mystify irresponsibly if their careers or their livelihoods require them to act in their clients fiscal interest.\r\nRecent pressure to accommodate more ethics instruction in the accountancy classroom has placed an emphasis on individuals who suck up a sense of moral responsibility. An emphasis on codes of bear may firmness in students adversity to â€Å"develop discretion and judgment . . . which are more than simply a matter of what acts are forbidden, which are required, and which are permissible” (Whitbeck, 1992, 128). Emphasis on rules may quickly conk out training in how to get around the rules while remaining technically legal.\r\n musical composition students must b e acquainted with professed(prenominal) codes of conduct as part of their preparation for a career, some researchers on ethics do not engage such material to be sufficient cornerstone in ethical training (Fulmer and Cargile 1993:Adams et al. 1995). A a few(prenominal) years ago the American Institute of prove Public Accounts (AICPA), the largest CPA membership organization in the world, decided that starting in the year 2000, bleak members would have to have 150 semester hour of college assign (5 Years) instead of the present four years to become a member (McGee). On the surface that does not appear to any big deal.\r\nNo one has to become an AICPA member to utilization public accounting or to be a CPA. But, there are several problems with this. The most obvious is that the major crowd harmed is the students (or parents), who must cough up another $10,000 or $20,000 for a twenty percent year of education. Then there is the added cost of not having a business organizatio n for the wasted 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 plausibly to be able to pay for a fifth year †blacks, Hispanics, low-income students of whatever persuasion.\r\nPoor people and minorities, along with rest of us, will have to face an even higher barrier to entry into the accounting profession. (Metzger 1061) As mentioned earlier is additional education altogether qualifying to make accountants more proficient at discipline techniques to get around laws, perhaps using unethical behaviors? And at the same time force tautological 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 serious viands for thought.\r\nWhat are the consequences of these unethical behaviors? Accountants can be held apt(p) for damages to clients and to third parties, he may in addition be found criminally liable for infringement of securities, tax, and other laws. For criminal violations, he 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 transposition commission and recount licensing boards.\r\nAn administrative proceeding may result in the revocation of an accountants 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 statues autocratic 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 attending and abet criminal violations of these laws by others.\r\nAccountants have huge responsibilities to their clients and to society. As an accounting major, doing research for this paper has helped to extend my eyes to the many aspects of my intended profession. I have realized that it is a very trustworthy profession, held in the highest esteem by the public at large. I know that I must take my job and the trust instilled in me very seriously. I go for that this paper has enlightened you to the pitfalls many certified public accountants face today, both with ethical standards and with impending educational requirements.\r\n'