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Running head: Personal and Professional Judgment in Accounting Ethics 1
Personal and Professional Judgment in Accounting Ethics
Joe R. Estrada
Liberty University
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Jean, I agree with your assessment that personal and professional judgment is a thin
line; however, one’s personal up bringing can have an effect on one’s professional judgment.
In other words, if one is raise with strong moral values then its likely those values will also
pour over to his/her professional life. Allow me to expand further using your writing as
foundation, since you have done an excellent job detailing the difference between personal
and professional judgment.
Distinguish between personal and professional judgment in accounting ethics
In the profession of accounting, ethical issues are significant. The reason ethical
issues are significant in this profession is because it incorporates sensitive materials such as
preparation of tax returns and financial statements (Smith, 2003). The personal judgment that
a professional in accounting has is typically due to specific ethical values that that person
possesses. The individual values include openness and honesty. In a professional setting, the
best way to know the personal ethics of an individual is through that person’s behavior.
On the other hand, professional judgments are dependent on the principles which have
been developed by various bodies or statutes (Brooks & Dunn, 2012). These ethical values
are meant to ensure that professional maintain a certain level of discipline thus maintaining
decorum in the places of work. Some of these values include fairness, proficiency, and
confidentiality.
The body that regulates the professional judgments of the accounting profession in
America is the American Institute of Certified Public Accountants (AICPA) (Smith, 2003).
Other countries also have professional accountants’ bodies which lay out the specific code of
ethics to be followed. These coded of ethics act as the basis for the professional judgment in
those countries. A good accountant has to learn to balance between personal and professional
ethics. An accountant should not go contrary to the ethics of the profession.
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The code of conduct of accountants that is specified by AICPA elaborates the duties
that should be performed by an accountant who has been assigned a particular job in the
profession. The personal ethics of an individual should be aligned with the professional ethics
of the profession (Geisler, 2010). One should ensure that when making a personal judgment,
that judgment does not lead to a breach in the codes of the profession.
Logically present arguments to justify the use of professional judgment in
resolving accounting ethics dilemmas
It is expected that the accountants should have the integrity of the highest level since
many stakeholders depend on them. Therefore, in the course of their duty, accountants should
not lean towards their personal gains and forget to uphold the professional ethics (Apostolou,
Dull, & Schleifer, 2013). There are many reasons that justify the logic of using professional
judgment when resolving the ethical dilemmas in the accounting profession.
•
Being reluctant to adhere to the ethics of the profession can result in consequences at
a personal level such as fines, imprisonment, and suspension.
•
Not abiding by the professional code of ethics can result in the damage to one's
reputation and also the loss of clients which can have long-term adverse effects on the
accountant whose job is dependent on reputation and clients.
•
When an accountant follows the ethics of the profession, there is a likelihood that the
reputation of that accountant will be good hence attracting more clients.
Hence, when an accountant is faced with a dilemma, the accountant should apply
professional ethics to solve the problem. During work, an accountant may be faced with
specific scenarios where there will be a conflict between professional ethics and personal
ethics. In such cases, it is difficult to assume one’s personal ethics and to adhere only to the
professional ethics (Hartman, DesJardins, & MacDonald, 2011). Let’s look at this from a
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divine nature perspective, 1 John 1:5-7 states “5 this is the message we have heard from him
and declare to you: God is light; in him there is no darkness at all. 6 If we claim to have
fellowship with him and yet walk in the darkness, we lie and do not live out the truth. 7 But if
we walk in the light, as he is in the light, we have fellowship with one another, and the blood
of Jesus, his Son, purifies us from all sin” (NIV). What this means is that there is light and
darkness, or right and wrong, in essence God’s divine nature is the foundation for moral
goodness and righteousness.
Conclusion
It is, therefore, necessary to create an excellent balance between professional and
personal ethics. In the event where the personal ethics and the professional ethics are almost
similar, then the output of the accountant is likely to be high. It is vital for accountants to note
that the decisions that they make have a direct effect on a number of stakeholders. Thus,
when making these decisions, they should take into consideration the professional ethics to
avoid future losses.
References
Apostolou, B., Dull, R. B., & Schleifer, L. L. (2013). A framework for the pedagogy of
accounting ethics. Accounting Education, 22(1), p. 1-17. Retrieved from: https://doi-
org.ezproxy.liberty.edu/10.1080/09639284.2012.698477
Brooks, L. J., & Dunn, P. (2012). Business & professional ethics, for Directors, Executives &
Accountant (7th Ed.). Stamford, CT: Cengage Learning.
Geisler, N. L. (2010). Christian ethics: Contemporary issues and options. Grand Rapids, MI:
Baker Academic.
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Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2011). Business ethics: Decision making
for personal integrity and social responsibility (3rd ed.). New York, NY: McGraw-
Hill/Irwin.
Smith, L. M. (2003). A fresh look at accounting ethics (or Dr. Smith goes to
Washington). Accounting Horizons, 17(1), p. 47-49. Retrieved from: Retrieved from
http://link.galegroup.com.ezproxy.liberty.edu/apps/doc/A99599088/ITBC?
u=vic_liberty&sid=ITBC&xid=f33e15ee
