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Ethics in Accounting
The clients, the professions, and societies. ... Marketing in public accounting is here to stay therefore making an argument against its existence would be fruitless; however, in order to achieve maximum benefit to the firm, the client, and society more stringent guidelines must be implemented at the firm level. ... First, the implications’ advertising has on public accounting-- the model of perfect competition versus the model of monopolistic competition. ... Thirdly, the effect of advertising on firm specialization, the implications of client turnover on public accounting practice. ... Although accounting services between firms offer very little service differentiation, the absence of advertising serve s as a replacement because clients are not necessarily aware that other options are easily attainable. ... 277)
When market demand for accounting services increases the resulting demand shifts right causing prices to increase returning the market back to equilibrium. However when supply increases, such is the theoretical effect of adding advertisement to public accounting practice, the supply curve shifts right causing prices to fall. ... Now that the differences re established, the resulting issues in public accounting can be discussed. ... Advertising in public accounting causes perspective clients to become bottom line oriented meaning the firms with the most available revenue to dump into advertising, coupled with the resources to offer lowest fees are the ones which grow. ...
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 evaluate the changes in quality of service resulting from these areas. ... The existence of advertising in public accounting creates a new environment to which firms are still adapting.
Approximate Word count = 1776
Approximate Pages = 7.1
(250 words per page double spaced)
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