October 28, 2024

Accounting ARC: Accounting Ethics Education

By: Center For Accounting Transformation / podcast
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“Our profession is trusted because we uphold ethics to a high standard, but that standard must evolve.”

The latest episode of Accounting ARC dives deep into a subject that every accounting professional is familiar with: ethics. However, as hosts Liz Mason, CPA; Byron Patrick, CPA.CITP, CGMA; and Donny Shimamoto, CPA.CITP, CGMA, reveal, there’s much more to explore beyond the traditional ethics training programs that most accountants are accustomed to. Their candid conversation brings a refreshing perspective to ethics education, one that is both engaging and essential for today’s accountants.

The Stale State of Traditional Ethics Training
Patrick, CEO and founder of VERIFYiQ and vice president of Client Success at The B3 Method Institute, opens the discussion with a relatable confession: despite having completed over 80 hours of ethics training throughout his career, he has never walked away feeling more equipped to navigate real ethical dilemmas. He highlights how these sessions are formulaic, often focused on basic rules such as independence violations. But while these trainings cover the basics, they don’t address the core challenge: understanding why certain decisions are ethical and how to handle real-life ethical dilemmas effectively.

Moving Beyond Check-the-Box Ethics
Mason, founder and CEO of High Rock Accounting, expands on Patrick’s frustrations, discussing how ethics education often feels like a “check-the-box” activity rather than a meaningful exercise. She introduces the concept of bringing philosophical frameworks into ethics training to provide a more in-depth understanding. “We need to go beyond simply teaching people what’s unethical,” Mason explains. “We need to teach them why it’s unethical.”

The Role of Values and Culture in Ethics
An important point raised by Shimamoto, the founder and managing director of IntrapriseTechKnowlogies LLC and founder and inspiration architect for the Center for Accounting Transformation, is the distinction between personal values and professional ethics. He notes that while personal morals are often shaped by culture and upbringing, professional ethics require an objective framework to guide decision-making. He emphasizes the importance of balancing these elements to provide accountants with the tools they need to navigate ethical gray areas. “Ethics training should not just be about rules but about understanding the broader implications of our actions,” Shimamoto says.

Ethics as a Broader Conversation
The discussion concludes with a call to expand the conversation around ethics. Mason suggests that incorporating relatable scenarios—like those seen in pop culture or even sci-fi—can make ethics education more engaging. “We need to bring ethics to life in a way that people can connect with,” she insists.

The conversation on Accounting ARC offers an eye-opening perspective on ethics education in accounting. The need for a fresh, engaging approach is evident, and the hosts provide valuable insights on how we can transform ethics training to better equip accountants for today’s complex challenges.

Check out the latest episode of the Accounting ARC Podcast on the Center’s YouTube channel. 

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