Journal of Business Ethics 147 (3):545-563 (2018)
Abstract |
This study investigates the impact of Securities and Exchange Commission enforcement actions on individuals holding Certified Public Accountant accreditation. While prior research has investigated both the characteristics of companies that have been investigated by the SEC and litigation against audit firms, it has not addressed the ways in which SEC investigations impact CPAs. Using a sample of 262 CPAs, we find that the most common CPA breach was associated with overstating revenues/income or earnings. The study finds serious consequences for CPAs in terms of employment restrictions and SEC actions, incorporating suspension, which is often permanent. We find that the primary factors relating to the severity of actions by the SEC is whether the CPA intentionally breached the professional code of conduct, the age of the CPA, whether the CPA is still a member of the AICPA with CPA status and whether the CPA was operating as an external auditor or in a corporate accounting role. Our findings have implications for accounting practitioners, the AICPA and boards of directors.
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DOI | 10.1007/s10551-015-2956-y |
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References found in this work BETA
In a Different Voice: Psychological Theory and Women’s Development.Carol Gilligan - 1982 - The Personalist Forum 2 (2):150-152.
Gender Differences in Proclivity for Unethical Behavior.Michael Betz, Lenahan O'Connell & Jon M. Shepard - 1989 - Journal of Business Ethics 8 (5):321 - 324.
The Business of Ethics and Gender.A. Catherine McCabe, Rhea Ingram & Mary Conway Dato-on - 2006 - Journal of Business Ethics 64 (2):101 - 116.
The Importance of Gender Across Cultures in Ethical Decision-Making.Maria L. Roxas & Jane Y. Stoneback - 2004 - Journal of Business Ethics 50 (2):149-165.
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Citations of this work BETA
Punishment by Securities Regulators, Corporate Social Responsibility and the Cost of Debt.Guangming Gong, Xin Huang, Sirui Wu, Haowen Tian & Wanjin Li - 2021 - Journal of Business Ethics 171 (2):337-356.
The Influence of Political Regime on State-Level Disciplinary Actions of CPAs Sanctioned by the PCAOB.Abdullah Al-Moshaigeh, Denise Dickins & Julia L. Higgs - 2022 - Journal of Business Ethics 176 (2):325-340.
The Interaction Between Suppliers and Fraudulent Customer Firms: Evidence From Trade Credit Financing of Chinese Listed Firms.Sirui Wu, Guangming Gong, Xin Huang & Haowen Tian - forthcoming - Journal of Business Ethics:1-20.
Consequences of Ethical and Audit Violations: Evidence from the PCAOB Settled Disciplinary Orders.Prabashi Dharmasiri, Soon-Yeow Phang, Ashna Prasad & John Webster - forthcoming - Journal of Business Ethics:1-25.
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