Praise for Previous Editions At last, a book that addresses the full range of accounting, tax, and audit issues, integrating the perspective of the accounting profession with that of a trained ethicist. This is a must-read for everyone in the accounting profession and in business ethics. Bravo Duskas!--Patricia H. Werhane, Darden Graduate School, University of Virginia Accounting Ethics offers a superb, accessible introduction to the traditions and responsibilities of individual accountants and their firms.--Carlin Romano, The Philadelphia Inquirer Easy to read, informative, and provides a good base for discussion.--European Accounting Review An accountant's practice depends on making difficult decisions. To achieve the best results, individual accountants and accounting firms need a clear understanding of the ethical duties and decision-making involved in the four major functions of modern accounting--auditing, management accounting, tax accounting, and consulting--as well as a strong sense of ethical conduct to guide the certification and validation of reliable financial records. Now in its third edition, Accounting Ethics is a thorough and engaging exploration of the ethical issues that accountants encounter in their professional lives. Since publication of the first edition in 2002, Accounting Ethics has become an indispensable resource for accounting courses and certification programs worldwide, known for its focus on real-world application, practical advice, and reader-friendly guidance, and its insight into the effects of global change on the profession. Together with coverage of the contemporary regulatory environment--including the Sarbanes-Oxley Act, the Public Company Accounting Oversight Board, and the Dodd-Frank Wall Street Reform and Consumer Protection Act--this revised edition features expanded pedagogical resources such as new end-of-chapter case studies and discussion questions, and includes the updated AICPA Code of Conduct. Concise and dependable, Accounting Ethics sustains its reputation as an authoritative resource for practicing accountants, new professionals, students of accounting, and those who are considering the profession. Preface to the Third Edition vii Introduction to Accounting Ethics 1 1 The Nature of Accounting and the Chief Ethical Difficulty: True Disclosure 9 2 Ethical Behavior in Accounting: What is Ethics? 35 3 Ethical Behavior in Accounting: Ethical Theory 59 4 Accounting as a Profession: Characteristics of a Profession 79 5 Accounting Codes of Conduct 87 6 The Rules of the Code of Conduct 107 7 The Auditing Function 133 8 The Ethics of Managerial Accounting 161 9 The Ethics of Tax Accounting 181 10 Ethics Applied to the Accounting Firm 201 Appendix A: Summary of Sarbanes Oxley Act of 2002 223 Appendix B: IMA Statement of Ethical Professional Practice 235 Index