Blog Post by Dr. Steven Mintz Analyzes Accountants’ Ethical Obligations in Business Whistleblowing Cases

Oceano, CA, November 27, 2013 --(PR.com)-- In a recent blog post, Accounting Professor Dr. Steven Mintz analyzed the challenges that business accountants face in cases of whistleblowing. Dr. Mintz reviews whistleblowing cases and the ethical challenges therein within the context of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection legislation, which provides incentives to whistleblowers offering the SEC information relating to a potential violation of federal securities law.

While the Dodd-Frank legislation supports the free flow of information between accounting professionals and those representing government agencies, the ethical challenges faced by accounting professionals involved in such business whistleblowing activities is significant. Dr. Mintz reviews the issue in detail in this latest posting and highlights the fact that CPAs have a confidentiality obligation to their clientele, preventing them from divulging information to third parties. This means that they also have an obligation not to divulge information related to failed audits. However if the scale of the financial irregularity is large enough, does this duty of the accounting professional to their organization outweigh their duty to the public good? That’s the question grappled with in the post written by Dr. Steven Mintz.

Dr. Mintz concludes that the duty of the professional can be overridden by their duty to the public good. But he also highlights the fact that presenting company information to outside stakeholders can be a dangerous activity due to their confidentiality obligation. And this type of action can lead to a mistrust of accounting professionals. In his closing words on the subject, Dr. Mintz says he believes that this type of behavior must be viewed from a utilitarian perspective that considers harms and benefits. He believes more harm will be done to stakeholders if the accountant remains silent in the fact of obvious wrong-doing. And he also finalizes his piece by saying that professionals must continue to protect the public good, above all else.

Those interested in reading Dr. Steven Mintz’s latest piece can visit his website at www.ethicssage.com.