Earnings management is one of the most important ethical issues facing the accounting profession. Lapses in ethical sensitivity and judgment caused many large, well known accounting scandals leaving many questioning how accountants make ethical decisions and why did not someone 'sound an alarm' that could have mitigated damage caused by corporate misconduct. Although accountants are facing more and more ethical dilemmas, there is little research available exploring whistleblowing behaviors of practicing accountants. This study explores Jones' (1991) model of moral intensity to determine which factors may contribute to the identification of an ethical problem, reasons for making a moral judgment, and ultimately why one may choose to report an action of earnings management that they believe is unethical. One-hundred fifty-seven attendees at the 2007 Institute of Management Accountants (IMA) National Meeting participated in this study providing a unique perspective on whistleblowing and earnings management.
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