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Professionalism in Accounting

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a. State how the concept of "professionalism" in the public accounting industry shifted or evolved between Federal Trade Commission's "restraint of trade" decision in the early 1970s and today, several years following passage of the Sarbanes-Oxley Act of 2002, and
b. State seven factors responsible for such changes

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This solution explains public accounting industry. The sources used are also included in the solution.

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The concept of professionalism in the public accounting industry has shifted between the Federal Trade Commission's "restraint of trade" and now. In 1977, ethics rules that prevented advertising to clients were lifted. The spending by the largest CPA firms on advertisements increased from $4 million in 1980s to more than $100 million in the 2000s. From the 1980s the universities began teaching ethics in accounting. From 1980 'till today there have been several accounting scandals. The results have been fraud charges, bankruptcy protection and closure of companies/auditing firms. The accounting profession has been hit by creative accounting, misleading financial analysis, and bribery. The events that changed the accounting profession were the opening of the first US center that focused on ethics in the ...

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