Task Team of FUNDAMENTAL ACCOUNTING School of Business Sun Yat-sen University 含 DISAPP EARING INC There is such an unprecedented sense of distrust in the business community today, on the part of the American public, perhaps it is best to ask why there was such a level of trust in the legal ethics of business during the boom period of the 1990s. Of course, the escalating profits investors were reaping may seem to be the main reasons for this misplaced trust and confidence, but there was also a sense that American business was comprehensible and amenable to the ordinary investor. The widespread allegations regarding insider trading and accounting fraud, as well as revelations that corporations such as Enron(and indeed, many of the poorly conceived internet bomb website creations) were in fact profitable and extant only on paper have created a sense that no one in the ordinary populace can either understand or trust business without specialized insider information and advice. Revelations of the abuse of executive perks at Tyco have also attracted the world's focus on the issues of business and accounting ethics Some quotes from the celebrities At this moment, America's highest economic need is higher ethical standards --standards forced by strict laws and upheld by responsible business leaders George W. Bush, Corporate Respo nsibiItv speech July 9, 2002 There are two levers to set a man in motion fear and self-interest Napoleon B What does ProFEsSIONaL aNd aCCoUNTINg ETHICS mean to us? The boom of the 90s has changed the business environment in ways that will require a reshaping of corporate leadership. Financial scandals and out-of-hand executive compensation demonstrate not only a lapse of ethics and unprecedented greed but also a disdain for the rule of law. Thus, the most pressing leadership issue for today is how to ensure that corporate officers behave in an ethical manner Because investors and creditors place great reliance on financial statements in making their investment and credit decisions, it is imperative that the financial reporting process be truthful and dependable. Accountants are expected to behave in an entirely ethical fashion, and this isTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University There is such an unprecedented sense of distrust in the business community today, on the part of the American public, perhaps it is best to ask why there was such a level of trust in the legal ethics of business during the boom period of the 1990s. Of course, the escalating profits investors were reaping may seem to be the main reasons for this misplaced trust and confidence, but there was also a sense that American business was comprehensible and amenable to the ordinary investor. The widespread allegations regarding insider trading and accounting fraud, as well as revelations that corporations such as Enron (and indeed, many of the poorly conceived internet bomb website creations) were in fact profitable and extant only on paper have created a sense that no one in the ordinary populace can either understand or trust business without specialized insider information and advice. Revelations of the abuse of executive perks at Tyco have also attracted the world’s focus on the issues of business and accounting ethics. Some quotes from the celebrities At this moment, America’s highest economic need is higher ethical standards --- standards enforced by strict laws and upheld by responsible business leaders. George W. Bush, Corporate Responsibility speech July 9,2002 There are two levers to set a man in motion, fear and self-interest. Napoleon B. What does PROFESSIONAL AND ACCOUNTING ETHICS mean to us? The boom of the 90's has changed the business environment in ways that will require a reshaping of corporate leadership. Financial scandals and out-of-hand executive compensation demonstrate not only a lapse of ethics and unprecedented greed, but also a disdain for the rule of law. Thus, the most pressing leadership issue for today is how to ensure that corporate officers behave in an ethical manner. Because investors and creditors place great reliance on financial statements in making their investment and credit decisions, it is imperative that the financial reporting process be truthful and dependable. Accountants are expected to behave in an entirely ethical fashion, and this is