| Scope and method of study. The purpose of this study was to examine possible factors that affect tax practitioners' ethical sensitivity (i.e., recognition) abilities. Participants in the study were 257 non-Big 6 and 156 Big 6 tax practitioners from across the United States. Subjects were randomly picked from the American Institute of Certified Public Accountants' membership files. The Total Design Method of mail surveys was utilized. The survey consisted of a multi-part questionnaire: exploratory tax ethical sensitivity scenarios and evaluations; scales that pertained to role conflict, role ambiguity, formalization, professional commitment, job satisfaction, ethical orientation, and socially desirable responses; and demographics used as covariates. The tax ethical sensitivity scenarios consisted of breaches from the AICPA's Statements on Responsibilities in Tax Practice. The covariates were years employed as a tax practitioner, sex, education level, familiarity with the AICPA's Statements on Responsibilities in Tax Practice, professional risk level, and type of employer. Linear regression, multiple regression, and ANCOVA were used to test five hypotheses.; Findings and conclusions. Role conflict was negatively and job satisfaction was positively associated with ethical sensitivity. The covariates of professional risk level and type of employer were significantly related to ethical sensitivity. Role ambiguity, professional commitment, and ethical orientation were not associated with ethical sensitivity. The factors that were significantly related with ethical sensitivity are job specific. The tax firm may have the best opportunity to positively change tax practitioners' ethical recognition abilities. Resources spent on professional codes of conduct may have a limited impact on tax practitioners' ethical recognition and behavior. With the lack of significance of ethical orientation, tax practitioners may not be predisposed to behaving a certain way. This suggests that ethical recognition can be increased through education. |
