Реферат: Accounting Ethics Essay Research Paper Accounting Ethics

This develops significant implications regarding firm longevity in a

capitalistic market of industry upswings and downturns. An example of

this is the construction industry in the Baltimore-Washington corridor.

The industry experienced phenomenal growt h in the Eighties followed by a

near halt. The result? many small to medium size firms following the

advice of specialization went belly up along with their clients. This

uncertainty exists with any firms who specialize. !

Firm specialization clearly is n

The final implication of the new competitive market is client

turnover. Gone are the days when firms could guarantee retaining a client

by providing a quality service at a fair price. New market pressures

require firms to constantly evaluate pricing st rategies, and, in some

cases bid on jobs yearly. This creates high levels of client turnover.

The result is firms must always actively seek new clients. Several

drawbacks of this are increased overhead costs to firms, less stability,

and greater servic e cost. Firms overhead costs increase because the

expenses of replacing clients must be absorbed. This expense comes from

both marketing tools used to attract clients, and costs of preparing a bid

to perform a service. Firms which previously served a client base from

year to year must face the uncertainty of retention of their client base

now. The cost of providing a service to a new client greatly exceeds that

of providing the same service to an existing client. When !

providing a service to a new clie

Now that the difference in the competition aspect of public

accounting is established emphasis is changed to examine the ethical

implications derived as a result. In the area of ethics one must examine

differences in independence, and integrity, and eva luate the changes in

quality of service resulting from these areas.

When examining independence one must maintain an emphasis on the