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Accounting Ethics - Term Papers

Accounting Ethics


When examining the effect of open marketing on the
accounting it is important to view it from three
perspectives: the
client's, the profession's, and society's. Additionally,
two key areas
that are affected by marketing must be addressed,
these are concerning competition, and ethical implications.
Marketing in
public accounting is here to stay therefore making an
argument against its
existence would be fruitless; however, in order to achieve
maximum benefit
to the firm, the client, and s ociety more stringent
guidelines must be
implemented at the firm level.
The first, and most obvious, of the effected areas is
competition.
Within competition several points are ...

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been chosen
for the pre-advertising era because it most closely
resembles the market
structure in an extreme sense. The elements o f
monopolistic competition
are as follows: product differentiation, the presence of
large numbers of
sellers, and nonprice competition. Although accounting
services between
firms offer very little service differentiation, the absence
of
advertising serve s as a replacement because clients are not
necessarily
aware that other options are easily attainable. The
post-advertising era
is explained through the model of perfect competition for
which the
qualifications are as follows: very little or no service d
ifferentiation,
many sellers, and price as the only means of distinguishing
one firms
service from anothers.
In a perfectly competitive market the price of a particular
service is established solely by the interaction of market
demand and
supply. (Thompson p.277) When market demand for accounting
...

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the client base of XYZ is not stable as in the
previous example
and measures must be taken to keep price s competitive with
other firms
regardless of cost inferences. The result is the necessity
of a more
aggressive policy regarding new client recruiting and a
higher turnover of
existing clients.
Now that the differences are established, the resulting
issues in
public accounting can be discussed. The first area
deserving discussion
is the relationship between firm size and advertising.
expenditures. A
study made of CPA firms in Britain in 1985 asserted "the
most dramatic
contrast between advertisers and non-advertisers was their
size."
...

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PAPER DETAILS
Added: 9/17/2006 11:06:49 PM
Category: Miscellaneous
Type: Premium Paper
Words: 1842
Pages: 7

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