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Deficiencies in the Code of Conduct: The AICPA Rhetoric Surrounding the Tax Return Preparation Outsourcing Disclosure Rules

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  • Renu Desai
  • Robin Roberts

Abstract

In this article, we examine the American Institute of Certified Public Accountants’ (AICPA) efforts to conceal the offshoring of tax return preparation services by U.S. Certified Public Accountants (CPAs) through recommending an inadequate disclosure format for this type of work. We draw on Giddens’ theory of trust and expert systems, the professionalism literature, and Flyvbjerg’s concept of power to analyze the underlying agenda behind the revised ethics rulings (AICPA Ethics Ruling No. 112 under Rule 102, No. 12 under Rule 201, and No. 1 under Rule 301). Specifically, we examine (1) the AICPA leadership’s stated professional justifications for outsourcing and its recommended client disclosures, (2) risks associated with outsourcing tax return preparation work overseas and the trust issues that result, and (3) the resistance to the AICPA leadership’s recommended outsourcing disclosure rules within the rank and file of the CPA profession. We argue that our analysis reveals the AICPA’s on-going promotion of their private interests, thus continuing to raise systemic concerns regarding the public’s trust in the U.S. public accounting profession. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Renu Desai & Robin Roberts, 2013. "Deficiencies in the Code of Conduct: The AICPA Rhetoric Surrounding the Tax Return Preparation Outsourcing Disclosure Rules," Journal of Business Ethics, Springer, vol. 114(3), pages 457-471, May.
    • Handle: RePEc:kap:jbuset:v:114:y:2013:i:3:p:457-471
    DOI: 10.1007/s10551-012-1329-z
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    References listed on IDEAS

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    Cited by:

    1. Darius Fatemi & John Hasseldine & Peggy Hite, 2020. "The Influence of Ethical Codes of Conduct on Professionalism in Tax Practice," Journal of Business Ethics, Springer, vol. 164(1), pages 133-149, June.
    2. Radka MacGregor Pelikánová & Robert Kenyon MacGregor & Martin Èernek, 2021. "New trends in codes of ethics: Czech business ethics preferences by the dawn of COVID-19," Oeconomia Copernicana, Institute of Economic Research, vol. 12(4), pages 973-1009, December.
    3. Adam P. Balcerzak & Radka MacGregor Pelikánová, 2020. "Projection of SDGs in Codes of Ethics—Case Study about Lost in Translation," Administrative Sciences, MDPI, vol. 10(4), pages 1-18, November.
    4. Matt Statler & David Oliver, 2016. "The Moral of the Story: Re-framing Ethical Codes of Conduct as Narrative Processes," Journal of Business Ethics, Springer, vol. 136(1), pages 89-100, June.

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