Examine the importance and interrelatedness of ability, beneovlence, and integrity as they relate to enhancing public trust in the accounting profession.

Running Head : Public trust in the Accounting Profession

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Restoring of the public 's confidence in the accounting profession is of paramount importance and rightly so . This profession has suffered major drawbacks in the level of trust and confidence the public holds in its work because of major international corporate collapses . The accounting profession is a profession like no other , and one of the most noble in the market place . With that precious franchise come some unique pressures and challenges ( HYPERLINK "http /newman .baruch

.cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm http /newman .baruch .cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm

There is increased scrutiny of financial reporting deficiencies and corporate disclosure requirements . This has had a negative and cumulative impact on the perceive credibility of financial reporting The issue is now at the forefront of public debate about the accounting profession and its effectiveness . The decline in reporting credibility is prevalent across capital markets worldwide , with the scale of the problem partly attributable to the unprecedented level of share prices in many markets . Restoring public trust and confidence in a manner that can be sustained over the long term requires concerted actions by a various parties in to address some very real systematic weaknesses plaguing our current corporate governance , accountability and related systems . The ramifications of Enron , WorldCom and Parmakt are far reaching ( HYPERLINK "http /newman .baruch .cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm http /newman .baruch .cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm

The hallmarks of public accountancy are objectively , ethics and independence . The public engages an accountant because they trust ability of that individual to provide necessary services consistent with high professional standards . Likewise , the public reasonably expects that if an accountant is negligent or incompetent , he or she will be held professionally accountable

Accounting professionals must comply with ethical standards regardless of the task they are performing . It is to the sincere advantage of the accounting profession if in all fields of activities it exercises care to maintain scrupulously all professional and ethical standards-competence , independence , integrity , and a professional attitude . The accounting professionals must not only avoid a conflict of interests , but also the appearance of a conflict of interest . Forces of change such as escalating competition to obtain and hold on to auditing clients and potential conflict of interest as accountants offers a literal supermarket of non audit services , presents new challenges to auditor independence . Principles of professional conduct are meant to guide accountants not only when offering traditional services , but also when conducting any professional service on behalf of clients HYPERLINK "http /newman .baruch .cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm http /newman .baruch .cuny .edu /digital /saxe /saxe_1999 /costello_1999 .htm

The accounting professional 's responsibility to the public is not only stated in their professional code , but it is an inherent component of our existence and , most importantly , what differentiates public accounting as a profession from merely a business or occupation . The professional standards of the AICPA state...