AFAANZ2008 - OpenConf Conference Management System

Lisa McManus
Griffith University
Australia

Nava Subramaniam
Griffith University
Australia

Abstract:
The ethical development of early career accountants (ECAs) (i.e. accounting graduate recruits with three or less years of working experience) is a critical issue for the accounting profession. Yet, little empirical evidence exists on the factors affecting ECAs’ ethical development and behaviour. This study examined the effects of mentoring support, the perceived standard of ethical conduct of peers, and individual attributes of ECAs on their ethical evaluations and behavioural intentions. A large questionnaire survey of ECAs working in Australian public accounting firms yielded 80 useable responses. Survey participants’ responses to a hypothetical case scenario indicate that their evaluation of the seriousness of the ethical conflict is affected by the perceived standard of ethical conduct of their peers, the ECAs’ personal ethical orientation, the extent of their ethics education at university and gender. The evaluation of a senior colleague’s ethical behaviour is affected by two types of mentoring support (career development and social support) and the perceived standard of ethical conduct of peers. In terms of behavioural intentions, the willingness of ECAs to contact the accounting professional bodies for ethical advice is seen to be affected by the size of the accounting firm (Big-Four vs. Non-Big Four) and the extent of ECAs’ ethics education at university. However, the likelihood of an ECA choosing a more ethical decision is seen to be correlated with only two factors: the individual ethical orientation of ECAs and the extent of their ethics education at university. These findings suggest that the ethical evaluations and behavioural intentions of ECAs are potentially affected by a multiplicity of sources including the accounting professional bodies, ethics curricula at universities, as well as their mentors and peers at the workplace.