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Between a rock and a hard place: Conflict minerals and professional integrity

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  • Jelinek, Kate

Abstract

Against the backdrop of integrity as put forth in the American Institute of CPAs’ (AICPA) Code of Conduct, this article takes a close look at a section of the 2010 Wall Street Consumer Protection Act, commonly known as Dodd-Frank. Interestingly, Section 1502 of the Act contains a provision that puts forth new reporting and disclosure requirements for publicly traded companies that manufacture products consisting of ‘conflict minerals’ derived from the violence-ridden Congo region. Though the provision is unlikely to stop the violence, the cost of disclosure for publicly traded companies is frighteningly high. This article examines the Big 4 accounting firms’ lobbying efforts that preceded passage of the Act and asks whether it is coincidental that Big 4 firms stand to gain from the Act's passage, as Section 1502 provides a new revenue stream that could potentially reach into the billions. This article also includes an examination of the origins of auditing, a very brief history of auditing in the U.S., and a look at the accounting industry's lobbying efforts in recent years. The article concludes with suggestions for the profession, firms, and individual auditors.

Suggested Citation

  • Jelinek, Kate, 2015. "Between a rock and a hard place: Conflict minerals and professional integrity," Business Horizons, Elsevier, vol. 58(5), pages 485-492.
    • Handle: RePEc:eee:bushor:v:58:y:2015:i:5:p:485-492
    DOI: 10.1016/j.bushor.2015.05.001
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    Cited by:

    1. Jelinek, Kate, 2018. "Will and Caroline: Accounting, professional integrity and lobbying," Journal of Accounting Education, Elsevier, vol. 43(C), pages 76-88.

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