Chapter 5 CONCLUSION
5.3 Research Implications
It is hoped the results of this research will help educators who are integrating ethical instructional components into their curriculum to satisfy professional initiatives. This research could be conducted using real life ethics’ issues developed into cases. This would give students the opportunity to discuss moral intensity components and identify how they influence the situation. Role-playing, essay responses, and open discussions may be excellent vehicles within which to examine various moral issues in accounting.
This research addresses the differences in accountant’s perceptions in terms of age, gender, education background and working experience. The results of this research will contribute to business organizations and professional associations that are developing training programs, policies and procedures, and educational programs geared towards accountants in order to help accountant become more sensitive to specific ethical accounting dilemmas and learn how to avoid the pitfalls of inappropriate decision-making related to accounting ethics.
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APPENDIX A
Survey Instrument
Project Title:
The effect of moral intensity on ethical decision process: An empirical study of accounting professionals in Vietnam
Aim of Study: To find out more about the influence of certain factors on business decisions in the field of accounting.
Please read the four scenarios describing interactions between accountants and business related issues. I am interested in your opinion regarding some aspects of these situations and the actions given. Assume that you are faced with a similar such situation; please evaluate each one of them and indicate the extent to which you agree or disagree with each of the statements following these scenarios. Please use the following scale for your answers: 1 = Strongly disagree, 2 = Somewhat disagree, 3 = Disagree, 4 = Uncertain, 5 = Agree, 6 = Somewhat agree, 7 = Strongly agree
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Scenario 1
Hung is a young management accountant at a large, diversified company. After some experience in accounting at headquarters, he has been transferred to one of the company’s recently acquired divisions, run by its previous owner and president, Truong. Truong has been retained as vice president of this new division, and Hung is his accountant. With a marketing background and a practice of calling his own shots, Howard seems to play by a different set of rules than those to which Tom is accustomed. So far it is working, as earnings are up and sales projections are high.
The main area of concern to Hung is Truong’s expense reports. Truong’s boss, the division president, approves the expense reports without review, and expects Hung to check the details and work out any discrepancies with Truong. After a series of large and questionable expense reports, Hung challenges Truong directly about charges to the company for typing that Truong’s wife did at home. Although company policy prohibits such charges, Truong’s boss again signed off on the expense. Hung feels uncomfortable with this and tells Truong that he is considering taking the matter to the Board Audit Committee for review. Truong reacts sharply, reminding Hung that “the Board will back me anyway” and that Hung’s position in the company would be in jeopardy.
ACTION: Hung decides not to report the expense charge to the Audit Committee. Please evaluate this action of Hung.
Statement Strongly
Disagree
Somewhat Disagree
Disagree Uncertain Agree Somewhat Agree
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Scenario 2
Lan , company controller, is told by the chief financial officer that in an executive committee meeting the CEO told them that the company “has to meet its earnings forecast, is in need of working capital, and that’s final”. Unfortunately, LAN does not see how additional working capital can be raised, even through increased borrowing, since income is well below the forecast sent to the bank. Seth suggests that Lan review bad debt expenses for possible reduction and holding sales open longer at the end of the month. He also brushes off the management letter request from the outside auditors to write down the spare parts inventory to reflect its “true value”. At home on the weekend, Lan discusses the situation with her husband, Cuong, a senior manager of another company in town. “They’re asking me to manipulate the books”, she says.
“On the one hand,” she complains, “I’m supposed to be the conscience of the company and on the other; I’m supposed to be absolutely loyal. “Larry tells her that companies do this all the time, and when business picks up again she’ll be covered. He reminds her how important her salary is to help maintain their comfortable lifestyle, and that she shouldn’t do anything drastic that might cause her to lose her job.
ACTION: Lan decides to go along with the suggestions proposed by her boss. Please evaluate this action of Lan.
Statement Strongly
Disagree
Somewhat Disagree
Disagree Uncertain Agree Somewhat Agree
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Scenario 3
Tung, the plant’s chief accountant, is having a friendly conversation with Thanh, operations manager and an old college buddy, and Tuan, the sales manager. Thanh tells Tung that the plant needs a new computer system to increase operating efficiency. Tuan interjects that with the increased efficiency and decreased late deliveries their plant will be the top plant next year. However, Thanh wants to bypass the company policy, which requires that items greater than $5,000 receive prior board approval and be capitalized. Thanh would prefer to generate purchase orders for each component part of the system, each being under the $5,000 limit, and thereby avoiding the approval “hassle”. Tung knows that this is clearly wrong from a company and an accounting standpoint, and he says so. Nevertheless, he eventually says that he will go along. Six months later, the new computer system has not lived up to its expectations. Tung indicates to Tuan that he is really worried about the problems with the computer, and the auditors will disclose how the purchase was handled in the upcoming visit. Tuan acknowledges the situation by saying that production and sales are down and his sales representatives are also upset. Thanh wants to correct the problems by upgrading the system (and increasing the expenses), and urges Tung to “hang in there”.
ACTION: Feeling certain that the system will fail without the upgrade; Tung agrees to approve the additional expense. Please evaluate this action of Tung.
Statement Strongly
Disagree
Somewhat Disagree
Disagree Uncertain Agree Somewhat Agree
If I were the plant’s chief accountant, I would make the same decision.
1 2 3 4 5 6 7
4. The overall harm (if any) done as a result of Tung’s decision
1 2 3 4 5 6 7
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There is a very small likelihood that Drew’s decision will
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Scenario 4
Quan is the assistant controller at Stern Electronics, a medium-sized manufacturer of electrical equipment. Quan is in his late fifties and plans to retire soon. His daughter has been accepted into medical school, and financial concerns are weighing heavily on his mind. Quan’s boss is out of the office recuperating from health problems, and in his absence Quan is making all decisions for the department. Quan received a phone call from an old friend requesting a sizable amount of equipment on credit for his new business. Quan is sympathetic but cognizant of the risk of extending credit to a new company, especially under Stern’s strict credit policy for such transactions. When Quan mentions this conversation to Lam, the general manager, he is immediately interested. Lam notes that the company needs an additional $250,000 in sales to meet the quarterly budget and, thus, ensuring bonuses for management, including Quan.
ACTION: Quan decides to make the sale to his friend’s new business. Please evaluate this action of Quan.
Statement Strongly
Disagree
Somewhat Disagree
Disagree Uncertain Agree Somewhat Agree
Quan should make the sale to his friend’s new business
The overall harm (if any) done as a result of Quan’s decision would be very small.
1 2 3 4 5 6 7
5.
SC Most people would agree that Paul’s decision is wrong.
1 2 3 4 5 6 7
65 6.
PE
There is a very small likelihood that Quan’s decision will
This section asks demographic questions about you. Please remember that your answers are completely confidential – there is no way for anyone to trace your responses.
Please answer each question to the best of your ability by checking the box that corresponds to your answer.
1. What is your age?
a. Under or 35 years old b. Over 35 years old
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2. What is your gender?
a. Male b. Female
3. What is your education background?
a. Under College’s degree b. College’s degree c. Bachelor’s degree
4. How many years did you work as accountant? _________________years.
a. Under or 5 years b. Over 5 years