NCJ Number
89165
Journal
Canadian Journal of Criminology Volume: 25 Issue: 2 Dated: (April 1983) Pages: 159-171
Date Published
1983
Length
13 pages
Annotation
Fifty-one randomly selected accountants surveyed concerning their reaction when observing fellow peers or senior partners committing fraudulent or unethical acts responded generally that they do not report those incidents to legal authorities or to the superior of the person involved.
Abstract
The conduct consisted of various means to retain a client, attempted bribery of an auditor, fraud by an audit manager for personal gain, practices by the employee's company or persons within the accounting firm which are directed against the competitor or clients, and other circumstances. Survey results showed that in 166 instances (41.9 percent), these circumstances would be ignored; in 158 (39.9 percent), the respondents would confront the persons involved; and in 72 instances (18.2 percent), auditors would inform superiors about the legal or ethical violations. A total of 211 situations were considered to be illegal. However, no respondent would inform legal authorities concerning any illegal or unethical activity that appeared on the questionnaire. Furthermore, responses indicated that auditors were much more likely to take action if the questionable conduct were nonaccountants, secretaries, for example, than their peers or senior partners. A hierarchy of acceptability seems to exist also concerning fraud so that crimes which threaten the auditor's independence or suggest that the integrity of the firm may be in question are least acceptable. Most acceptable are unethical practices against a competitor. Detailed findings and implications for the accounting profession are discussed. Tables and eight references are included.