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Accounting Ethics - Term Papers

Accounting Ethics


When examining the effect of open marketing on the profession of
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 society 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 discussed. ...

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era because it most closely resembles the market
structure in an extreme sense. The elements of 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 serves 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 differentation,
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
services increases the resulting demand shifts right causing prices to
increase returning ...

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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."
(O'Donohoe p.122) The obvious reason for this anomaly is availability of
resources. Larger firms have, at their disposal, a much larger profit
level; therefore advertising expense is easily ...

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PAPER DETAILS
Added: 11/19/2006 07:59:09 AM
Category: Legal Issues
Type: Premium Paper
Words: 1838
Pages: 7

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