Реферат: Accounting Ethics Essay Research Paper Accounting Ethics

take on work at substantial discounts from standard

fee levels. While there may be justifications for

performing services at reduced rates during off-peak

periods in special situations such as for non-profit

institutions or similar organizations, the extent to

which this practice has grown cannot be justified

on any logical or professional basis. (Formichella p. 81)

The distaste shown by Mr. Formichella in the area of cut-rate pricing

shows it as an issue of concern and one which damages integrity. Mr.

Formichella goes on to call for the implementation of professional

standards to prohibit actions such as this which

are damaging to the image and integrity of the profession. One would

have to agree with his statement; however difficulties arise, in the area

of monopolistic activity when guidelines are established regarding pricing

strategies across an industry. Unf ortunately the profession must rely on

the integrity of individual firms to guard against this strategy. As a

result, this is a practice likely to continue, albeit damaging to the

profession and those which rely on the statements made by the profession.

The existence of advertising in public accounting creates a new

environment to which firms are still adapting. This new environment is

largely the result of increased competition and a clientele which is

increasingly more bottom line oriented. In order

to compete firms must place more emphasis on marketing and accept it as a

cost of doing business. The result of this will be more difficult

penetration and an increasingly limited number of small firms in the

business. Market pressures also are forcing

creating situations where ethical issues such as independence and

integrity are questioned making it imperative that the AICPA create

guidelines from which the evolving profession must base itself. In the