The Impact Of Ethics Education On Disciplanary Actions; A Comparison Between Texas And Ohio

• In Event: Accounting Fraud and Ethics

Abstract

In 2005, Texas began requiring the completion of a Board approved, university-level ethics course prior to sitting for the CPA exam in Texas. In 2004, Ohio began requiring regular ethics CPE for the first time. This paper evaluates the changes in the number of disciplinary actions and the type of code violations in these two states after implementation of new ethics requirements.

The results indicate that as a percentage of violations, Texas has seen a significant increase in felony convictions, while Ohio has seen significant increases in problems related to licensing, practice, and conduct unbecoming.

These results provide support for Donegan and Ganon’s (2008) assertion that ethics instruction is unlikely to be able to overcome the macro level coercive forces that lead to accountant misconduct.

Author

• Kathy F Otero, Truman State University