| The failure of some of the world’s most successful business enterprises has been partly blamed on the professional accountant’s misbehavior and unethical conduct. Such actions lead to scandals that affect both financial markets and individual investors, resulting in a general state of public mistrust. The purpose of this study is to assess the level of professional judgment of the Certified Public Accountant members of Philippine Institute of Certified Public Accountants – Batangas Chapter based on IFAC Code of Ethics and in resolving ethical dilemmas. The descriptive design is used, with the aid of survey questionnaires, to acquire information to CPAs that are selected through simple random sampling. The study revealed that the level of professional judgment of the respondent CPAs in terms of integrity principle is very strong and with regard to objectivity, professional competence and due care, professional behavior, and in resolving ethical dilemmas is strong. The study also revealed that there is a significant relationship between the professional judgment of CPAs based on IFAC Code of Ethics and in resolving ethical dilemmas cases. In addition, when the respondents are grouped according to age, sex, sector, and years of professional experience, the level of professional judgment have no significant differences. The researchers proposed some activities to improve the professional judgment of CPAs and to enhance the public trust in the accounting profession. |
Bulo, A., Mahaluça, F., Vilanculos, A., Mabjaia, E., Maite, A., Macuacua, J. U., & Manhique, O. A. (2020). Analysis of the level of compliance with the code of ethics in the accounting profession. Journal of Accounting and Taxation, 12(3), 108-117.
Carnegie, G. D., & Napier, C. J. (2013). Popular accounting history: Evidence from post-Enron stories. Accounting Historians Journal, 40(2), 1-19. Retrieved June 11, 2021, from http://www.jstor.org/stable/43486733
Corporate Finance Institute. (2020). Ethical Dilemma. https://corporatefinanceinstitute.com/resources/knowledge/other/ethical-
dilemma/
Desplaces, D.E., Melchar, D.E., Beauvais, L.L. & Bosco, S.M. (2013), “The impact of business education on moral judgment competence: an empirical study”, Journal of Business Ethics, Vol. 74, pp. 73-87
Feil, A. A., Diehl, L., & Schuck, R. J. (2017). Professional ethics and accounting students: analysis of the intervening variables. Cafajeste. EBAPE. BR, Rio de Janeiro, 15(2), 256-273.
Haron, H., Ismail, I., Ibrahim, D. N., & Na, A. Lo. (2014). Factors influencing ethical judgment of auditors in Malaysia. Malaysian Accounting Review, 13(2).
IFAC. (2018). Handbook of the international code of ethics for professional accountants including international independence standards. International Federation of Accountants. http://picpa.com.ph/attachment/725202016347595.pdf
Masuod, Najeb. (2016). Toward a strong ethics codes for professional accounting and auditing. Journal of business market management. 18. 89-96. 10.9790/487X-1811048996.
Obara, L. & Ironkwe, U.. (2012). Ethical concept, professional judgment and financial reporting in Nigeria. International Journal of Business and Finance. 4. 48-65.
Salosagcol, J., Tiu, M. & Hermosilla, R. (2011). Auditing theory: Republic Act No. 9298: The Philippine accountancy Act of 2004. Philippines: Conanan Educational Supply. |