Why are ethics important in the accounting profession? What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; some examples are Xerox, WorldCom, Enron, which have generated a lot of unwanted and unfavorable publicity for accountants, including those who work as controllers or financial managers for organizations. When you hear the word “ethics,” what's the first thing that comes to mind? mind? Having to make the decision to do what is right instead of doing what is wrong. Some idealists argue that ethical decisions should not be conditioned. However, this is not as simple as it might seem. What constitutes "right" for one person may be "wrong" for another; What clearly distinguishes the line between right and wrong? What some may consider unethical does not necessarily make it illegal. In David Duncan's plight, the principal audit partner at Arthur Anderson, Enron's accounting firm, highlights the penalty that accountants can face under professional liability. Duncan had pleaded guilty to obstruction of justice when he was involved in the destruction of documents. The scandals have had major consequences on the profession as a whole. One of the decisions of the Public Company Accounting Oversight Board (PCAOB), created by the Sarbanes-Oxley Act (SOA) of 2002, voted in April 2003 to assume responsibility for establishing auditing standards. The Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) previously served in this role. The PCAOB has authority to provide rules governing the following areas; ethics, independence and quality control for any registered accounting firm...... half of the paper ...... and CPA Journal (2006). Retrieved September 16, 2006. Bernardi, Richard A. and LaCross, Catherine C. “Corporate Transparency: Disclosure of the Code of Ethics.” The CPA Journal (2005). Retrieved September 16, 2006. Romal, Jane B. and Hibschweiler, Arlene M. “Improving Professional Ethics: Steps to Implement Change.” The CPA Journal (2004). Retrieved September 16, 2006. Turner, Robert M. "Ethics and Professionalism: The Accountant in Industry." The CPA Journal (1999). Retrieved September 18, 2006. Verschoor, CMA, Curtis C. "Ethics: Doing the Right Thing." Strategic Finance (2006). Retrieved September 18, 2006. Websites Visited http://www.aicpa.org http://www.aicpa.org/members/div/ethics/index.htm http://www.aicpa.org/members/div /acctstd/index .htmhttp://cpcaf.aicpa.org/Resources/Ethics+and+Independencehttp://www.imanet.org/about_ethics_articles.asp