Whistleblowing by the CPA: Legality vs. Ethics

• In Event: Breakfast with Roundtable Forum
  In Paper Session: Table 3 CPA--The Profession

Abstract

Abstract
There can be a time where the legality of the law may clash with the ethical thing to do. This paper explores the legal and ethical trial of the Certified Public Accountant (CPA) as either a member in business or a member in public practice when confronted with a whistleblowing decision. In either member role, the CPA has seemingly conflicting guidelines driving his or her decision. These guidelines include regulations under the Securities and Exchange Act of 1933 and 1934, the Sarbanes-Oxley Act (SOX) of 2002, and the amended Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. In contrast with this federal governance, the CPA must also comply with ethical rules imposed by the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. These rules define the pathway for the whistleblowing decision by the CPA. Feeling like they have to choose between their knowledge of the law and their ethical responsibility may be confusing in determining the best path. This paper is intended to not only assist CPAs with their answer of choice but also to inform and educate students in higher education in this complex and ambiguous endeavor.

Author

• Gregory John Krivacek, ROBERT MORRIS UNIVERSITY