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Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process

Author

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  • Valorie M. Leonard
  • Charles H. Bélanger
  • Leslie J. Wardley

Abstract

The governing bodies of the Chartered Accountant (CA) profession and business schools go to great lengths to ensure accounting professionals are equipped with a skill set that meets technical, professional, ethical, and other general requirements. In spite of a strict code of ethics, violations of the professional conduct rules leading to disciplinary action are a reality. Using the total CA membership (N = 36,465) of Ontario, Canada, this study makes a 27‐year retrospective assessment of the frequency of disciplinary cases, the characteristics of offenders, the disciplinary process, and the sanctions imposed. Results indicate that: (i) approximately 1.38 percent of the members have been charged with violations of the Rules of Professional Conduct by the Institute of Chartered Accountants over that period; (ii) most were sole proprietors engaged in public accounting; (iii) on average, men make up 76 percent of the CA membership, outnumbering women by three to one (3:1); yet, men were 16 times more likely than women to be charged; (iv) the majority of the offences occurred while members with public accounting licenses were conducting external audits; and (v) sanctions ranged from a “rap on the knuckles” admonishment to expulsion from the CA profession. This study is exploring the CA disciplinary process as observed through disciplinary notices and suggests improvements to the system. Examen du comportement éthique des comptables agréés de l'Ontario: une analyse longitudinale du processus disciplinaire Résumé Les organismes régissant la profession de comptable agréé (CA) et les écoles de gestion ne négligent aucun effort pour s'assurer que les professionnels comptables soient dotés d'un ensemble de compétences répondant aux exigences techniques, professionnelles, éthiques et autres impératifs généraux. Malgré un code d'éthique rigoureux, les infractions aux règles de déontologie nécessitant l'application de mesures disciplinaires demeurent une réalité. En utilisant les données relatives à l'effectif total des CA de l'Ontario, au Canada (N = 36 465), les auteurs procèdent à une évaluation rétrospective sur 27 ans de la fréquence des affaires disciplinaires, des caractéristiques des contrevenants, du processus disciplinaire et des sanctions imposées. Les résultats révèlent ce qui suit : i) approximativement 1,38 pour cent des membres ont été accusés d'infraction aux règles de déontologie par l'Institut des comptables agréés au cours de cette période ; ii) la plupart exerçaient la profession d'expert‐comptable à titre individuel ; iii) même si l'effectif des CA était, en moyenne, constitué d'hommes à 76 pour cent, soit trois fois plus que de femmes, les hommes étaient 16 fois plus susceptibles que les femmes d'être accusés d'infraction ; iv) la majorité des infractions ont été commises lorsque les membres possédant un permis d'exercice de l'expertise comptable réalisaient des audits externes ; et v) les sanctions allaient d'un rappel à l'ordre à l'expulsion de la profession de CA. Les auteurs se penchent sur le processus disciplinaire des CA tel qu'en témoignent les avis sur les infractions disciplinaires et suggèrent des améliorations pouvant être apportées au système.

Suggested Citation

  • Valorie M. Leonard & Charles H. Bélanger & Leslie J. Wardley, 2016. "Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process," Accounting Perspectives, John Wiley & Sons, vol. 15(3), pages 169-199, September.
  • Handle: RePEc:wly:accper:v:15:y:2016:i:3:p:169-199
    DOI: 10.1111/1911-3838.12095
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    References listed on IDEAS

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