Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting

Singh, Ajay Kumar and Vasudeva, Sakshi (2013) Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting, The Global eLearning Journal Vol. 2, No. 3, pp.1-25.

25 Pages Posted: 18 Jul 2013

See all articles by Ajay Kumar Singh

Ajay Kumar Singh

Sri Sri University, on EOL from University of Delhi - Department of Commerce, Faculty of Commerce and Business, Delhi School of Economics

Sakshi Vasudeva

University of Delhi - Acharya Narendra Dev College

Date Written: July 17, 2013

Abstract

Accounting scandals have shaken the confidence of the investor in the companies. Large number of people lost their money in these scandals. All these scandals were attributed to false, misleading, or untruthful accounting. This undermines the role of accounting professionals who did not report material manipulations in the financial results of the company. The study attempted to find an association between ethical values of accounting professionals and their choices in ethical dilemmas in their profession. Correlation scores in this study revealed that there is a statistically significant low degree of positive correlation between value assessment ratings and ethical dilemmas in scenarios. Similarly, the correlation coefficients computed between scenario ratings and formal ethics education indicates that the latter would be important in preventing the instances of unethical reporting. Ethical value score of professionals were found to be more explanatory than formal ethical education. The study strongly recommends building up of rigorous ethical and fiduciary responsibility in the financial sector through various means. The auditors must be trained to become responsible, independent, and judicious while conducting audits. Professional bodies should encourage compliance with ethical reporting practices in accounting by both carrot and stick approach.

Keywords: Reporting, Ethics, Values, Accounting, Financial Reporting

JEL Classification: L29, M41, M42, Z13

Suggested Citation

Singh, Ajay Kumar and Vasudeva, Sakshi, Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting (July 17, 2013). Singh, Ajay Kumar and Vasudeva, Sakshi (2013) Do Building Up of Values Matter? An Analysis of Ethical Values of Accounting Professionals and Unethical Reporting Practices in Accounting, The Global eLearning Journal Vol. 2, No. 3, pp.1-25., Available at SSRN: https://ssrn.com/abstract=2290593

Ajay Kumar Singh (Contact Author)

Sri Sri University, on EOL from University of Delhi - Department of Commerce, Faculty of Commerce and Business, Delhi School of Economics ( email )

Bidyadharpur - Arilo
Cuttack, Odisha 754006
India
+919810108767 (Phone)

HOME PAGE: http://www.drajayksingh.org

Sakshi Vasudeva

University of Delhi - Acharya Narendra Dev College ( email )

Acharya Narendra Dev College
University of Delhi
Delhi
India

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