NAVIGATING ETHICAL GRAY AREAS: A QUALITATIVE EXPLORATION OF ACCOUNTANTS’ DECISION- MAKING PRACTICES

Abstract

The focus was on Certified Public Accountants (CPAs) and their lived experiences as they dealt with ethical gray areas and how these influenced their decision making in practice. This study took a qualitative phenomenological approach by tapping into the lived experiences of sixteen CPAs in Pampanga surrounding ethical areas such as conflict of interest, financial statement manipulation, revenue recognition and pressure from management. The instrument for data collection was semi-structured interviews, with thematic analysis being the chosen data analysis approach. Findings from the study revealed critical themes regarding the challenges faced by accountants, such as organizational pressure, professional judgment, and the role of accounting standards to help guide decisions. Lack of clearly defined solutions in situations where the standards were flexible and allowed the use of professional judgment created uncertainty. Despite these challenges, a majority of the participants exhibited a high sense of responsibility by trying to adhere to the professional code of conduct, as well as relying on their own personal values such as honesty and integrity. Ethical decision-making in accounting is thus influenced by both rules and real workplace circumstances, as demonstrated by the experiences of the participants in this study. The findings indicate a need to raise ethical awareness and ethical support systems within organizations to equip accountants with the required skills and exert pressure to cope with complex scenarios and retaining reliable financial reports.