What Does It Mean to Be an Ethical CPA?
“Action indeed is the sole medium of expression for ethics,” (“Ethics,” 2015, p. 1). This
quote from Jane Addams, a social and political activist and author, propels ethics from mere
prose to performance (“Jane Addams Hull-House Museum,” 2009). In the CPA profession,
ethics fuels the central core, code, and conduct of corporate and business professionals. To
explain what it means to be an ethical CPA, the acronym ethics helps professionals remember,
summarize, and most importantly act upon such trustworthy tenets.
The definition of ethics states that “ethics are the set of moral principles that guide a
person's behavior (Diaz, 2015, p. 1).” Moreover, the definition provides the framework for the
acronym ethics to build upon in the business world. The letter “e” in the acronym ethics
exemplifies “education” as it pertains to learning about ethics through practical classroom
courses, professional seminars, and principled belief systems. The letter “t” typifies
“transformation,” since CPAs translate information and turn dreams into reality. The letter “h”
highlights “handling” through sources, standards, and state codes of conduct. The letter “i”
indicates the “influences” involved in CPAs ethical behavior. The letter “c” characterizes
“communication,” focusing on ethical requirements, relationships, and reporting. Lastly, the “s”
signifies “services” that CPAs ethically provide. The ethics involved in Education,
Transformation, Handling, Influences, Communication, and Services guide CPAs behavior.
To start, the first letter, “e,” in the acronym ethics, represents education, which exists as
the first step on the way to ethical behavior. Without knowledge of ethics, actions may veer off
into fraudulent and falsified frontiers. Through college courses, professional seminars, and
ethically based belief systems, participants learn the structure of scruples, the meaning of morals,
and the pertinence of principles. This learning about ethics pertains especially to the business
profession where trust in transactions remain paramount in the requirements, relationships, and
reporting of dealings. The question often comes up whether ethics can be learned in settings such
as on college campuses and corporate conference rooms. Once learned, guiding moral principles
need to be expressed through actions that constitute ethics. Through education, ethics can be
learned but it is the acting upon the education that truly answers the call to principled behavior.
Continuing education about ethics as it relates to CPAs remains helpful, especially in a world of
change and an industry of nuances. Incorporating education in the business arena exists as a
catalyst that is never too little or too late in the journey of humaneness, since it provides the tools
for beliefs to bud, ethics to bloom, and integrities to blossom.
Secondly, the letter “t” in the acronym ethics focuses on transformation. CPAs enable
clients and corporations to shape their future. By combining insight with integrity, CPAs clearly
and objectively communicate the canvas of the conditions and circumstances; translate complex
facts and figures into critical knowledge and information; foretell and fashion opportunities; and
plan and propose paths and passageways that transform ideas into reality (Muniz, 2013). CPAs
mold, make, and move clients and corporations from statistics to successes and from visions to
veracities. These transformations allow for consciences, constancy, credibility, and clarity—the
cornerstones of ethical behavior in the business realm. Without ethics, the foundation of change
is built on rocky ground and often crumbles under industry pressures, business burdens, and
client stresses. Ethics help actively transform everyday findings to future foundations.
The third letter “h” in the acronym ethics highlights handling and how CPAs gather
their information, guard their relationships, and guide their behaviors. Sources, standards, and
state codes of conduct contribute to the ethics of CPAs in their business dealings. Overall, The
Professional Ethics Executive Committee (PEEC), a senior committee of the American Institute
of CPAs (AICPA), interprets and enforces the AICPA Code of Professional Conduct (Melancon,
2014). Besides enforcing a CPA code of conduct and delineating standards, the AICPA provide
information, education, and materials on professional ethics, non-authoritative guidance, and
networking resources. With personal, professional, and public ethics providing a basis for CPAs
to operate, these additional local, national and governmental standards and codes project even
more stringent constraints, checks, and controls on CPAs. Therefore, the CPA profession
demonstrates intense ethical standards often not required, enforced, or warranted in other
professions. With layers of limitations, binding boundaries, and countless constrictions, CPAs
conduct business with the convictions to uphold rulings, regulations, and restrictions. These
trusted professionals handle happenings between themselves and their clients, within the
business climate, and globally under the strict sources, standards, and state codes of conduct.
CPAs rely on handling avenues to finger-point fraudulent actions, as well as walk hand-in-hand
with clients in a close, trusted interrelationship.
Next, the letter “i” indicates the ethical influences involved in the profession of CPAs.
One of the greatest influences on auditing exists as the infusion of cutting-edge computer
technology. Additionally, changes in information collection, client involvement, and
globalization impact the business industry. These influences often come with fees for doing
business that involve hardware, software, client involvements, and global tasks. The benefits and
convenience of technology influence the CPA profession by performing complex calculations
with flexibility, ease, speed, and accuracy, which generate data and reports rapidly and clearly.
However, ethics comes into play to ensure that electronic privacy, confidentiality, and
appropriate fees are adhered to for the clients and the corporation (Wallace, 2002). Moreover,
CPAs ethically need to stay technological savvy to ensure their best customer service continues.
The letter “c” in the acronym ethics characterizes communication. By CPAs
communicating properly, they better handle the ethical requirements, relationships, and reporting
in the business world. Clients and corporations may encourage CPAs to act fraudulently by
finding ways to avoid taxes, but ethical CPAs must rely on requirements of the profession to
keep relationships in check and report dealings with accuracy and accountability. The start of
ethical interactions comes from initial statements of standards and strict guidelines that the hired
CPA will follow. Luckily, CPAs actions are backed by regulations, restrictions, and rules that
help maintain their cases. Communicating strong stances on subjects and situations that could
veer into unethical territories needs to be first and foremost in forming relationships with clients
and corporations.
The letter “s” in the acronym of ethics stands for services. CPAs provide many services
to clients and corporations. However, their ethical behaviors are the true benchmarks on how
well they serve, assist, and help their clients. Moreover, it remains more important to maintain
quality service with integrity than provide a myriad of unethically rooted services. Quality
prevails over quantity when it comes to ethically servicing clients and corporations.
Ethics involves the areas of Education, Transformation, Handling, Influences,
Communication, and Services as it guides CPAs to behave with integrity, honesty, and
truthfulness. However, ethics are best expressed in these areas with action and not just
showcased as philosophical principles. First, CPAs must educate themselves in what it means to
be ethical through actions, such as signing up for classes, attending conferences, and staying on
top of industry changes. Secondly, CPAs must transform facts and figures into future successes.
With ethical views, CPAs can turn visions to verified results. Thirdly, CPAs must handle
business relationships and requirements with reliance and reference to sources, standards, and
state codes of conduct. Additionally, CPAs must be attentive to the influences on the profession
and how traditional impacts and technological changes affect business transactions. The ethics
involved in privacy matters, confidentiality concerns, and global interactions needs CPAs to
adhere to laws. In addition, communication remains a key component in setting the stage for
ethical actions, as well as continuing the dialogue and dealings with clients in a backdrop of
integrity. Lastly, the services provided by CPAs need to focus more on ethical quality than
quantity of offerings and opportunities.
To fully respond to the question of what does it mean to be an ethical CPA requires more
than pat answers, philosophical prose, and backseat beliefs. Though redundant in wording but
required to realize in importance, ethical behavior requires ACTION. The feats remain the focus
in ensuring CPAs maintain, monitor, and manage ethical behavior. Therefore, through
Education, Transformation, Handling, Influences, Communications, and Services, CPAs set the
bar high for other professions to follow ethical guidelines and build ethical foundations locally,
nationally, and even globally.
Furthermore, ethical requirements of the profession impact various services that CPAs
provide to clients. Moreover, ethical behavior keeps financial reporting in check, as well as
keeps fraudulent dealings from happening. From avoiding taxes to charging auditing fees, the
professional world for CPAs remains inundated with business questions coming up against a
framework of ethical decisions, choices, and actions. The good news is that ethical requirements,
standards, and codes help CPAs stay on track, maneuver through obstacles, and uphold
principles. With continued education in ethics and adherence to regulations, CPAs learn to stand
strong in a growing and changing environment. Moreover, CPAs can rely on the influences and
structures in place for checks and balances. Additionally, with the acronym ethics, CPA
professionals can remember, summarize, and act in trustworthy ways in the areas of Education,
Transformation, Handling, Influences, Communication, and Services. In a word of so many
mistakes, misrepresentations, and misgivings, the CPA profession holds the promise, provisions,
and progressiveness to promote ethics and perform ethically.
References
Diaz, A. (2015). “Defining Ethics.” Boundless Management. Retrieved from
https://www.boundless.com/management/textbooks/boundless-managementtextbook/ethics-in-business-13/ethics-an-overview-95/defining-ethics-446-8310/
“Ethics.” (2015). BrainyQuote. Retrieved from
http://www.brainyquote.com/quotes/authors/j/jane_addams.html
“Jane Addams Hull-House Museum.” (2009). UIC College of Architecture and Arts. Retrieved
from http://www.uic.edu/jaddams/hull/_learn/_aboutjane/aboutjane.html
Melancon, B. C. (2014). American Institute of CPAs (AICPA). Retrieved from
http://www.aicpa.org/Pages/default.aspx
Muniz, B. E. “What Do CPAs Do?” (2013). New Jersey Society of Certified Public Accountants.
Retrieved from http://www.njscpa.org/index/students/career-path/what-do-cpas-do
Wallace, E. P. (2002). “The Influence of Technology on Auditing.” Pennsylvania Institute of
Certified Public Accountants. Retrieved from
http://www.picpa.org/Content/cpajournal/2002/winter/26.aspx