Public Accounting and Financing Terrorist Organizations and Activities: Ethical and Legal Obligations

21 Pages Posted: 27 Mar 2017  

Wm. Dennis Huber

Capella University

D. Larry Crumbley

Louisiana State University, Baton Rouge - Department of Accounting

Multiple version iconThere are 2 versions of this paper

Date Written: March 26, 2017

Abstract

Financing terrorist organizations and activities must be fought on at least four fronts within public accounting in the United States: the SEC Audit Requirements, PCAOB Auditing Standards, the AICPA Code of Professional Conduct, and state licensing statutes. This article examines the ethical and legal obligations the public accounting profession face presented by these three domains. We argue first that CPAs have an ethical obligation to report to appropriate authorities evidence of financing terrorist organizations and activities discovered during the course of providing professional services which are not recognized by the SEC Audit Requirements, PCAOB Auditing Standards, the AICPA Code of Professional Conduct, or state licensing statutes, and second that the SEC Audit Requirements, the PCAOB Auditing Standards, the AICPA Code of Professional Conduct, and state licensing statutes should be revised to explicitly recognize such ethical obligations and create legal obligations to report to appropriate authorities evidence of financing terrorist organizations and activities discovered during the course of providing professional services.

Keywords: public accounting, ethics, money laundering, reverse money laundering, terrorism

JEL Classification: M40, M41, M48, M49

Suggested Citation

Huber, Wm. Dennis and Crumbley, D. Larry, Public Accounting and Financing Terrorist Organizations and Activities: Ethical and Legal Obligations (March 26, 2017). Journal of Accounting, Ethics and Public Policy, Vol. 18, No. 1, 2017. Available at SSRN: https://ssrn.com/abstract=2941218

Wm. Dennis Huber (Contact Author)

Capella University ( email )

225 South 6th Street, 9th Floor
Minneapolis, MN 55402
United States

D. Larry Crumbley

Louisiana State University, Baton Rouge - Department of Accounting ( email )

E.J. Ourso College of Business Administration
2800 Business Education Complex
Baton Rouge, LA 70803
United States

Paper statistics

Downloads
25
Abstract Views
72