Dr Soheila MirshekaryAccounting firms will need to adhere to new ethical standards and policies if a CQU researcher's recommendations to Certified Practicing Accountants (CPA) Australia are upheld.

CPA Australia has awarded Dr Soheila Mirshekary a $6500 research grant to complete her project titled "Ethical Climates and the Ethical Decision Making of SMEs (Accounting Firms) in Australia" which aims to develop a set of ethics for young accountants and strengthen the ethical code for auditors.

The proposed research will provide recommendations to CPA Australia.

"The current trend in global business shows that business professionals will come under closer scrutiny in the future and will likely be expected to hold a higher level of ethical standards than they have to date," Dr Mirshekary said.

"Ethically questionable practices have been observed recently in regard to the operation of various companies and accounting firms, causing professional bodies to raise concerns.

"The purpose of my project is to build an understanding of ethics from the perspective of the business owners in Australia.

"I hope to determine the organisation variables in the small accounting firms of Australia on ethical behaviour of accountants and the ethical climates of these firms; and empirically examine the relationship between adequacy of ethical standards and policies of SMEs and the owner/managers' preparedness to deal with ethical challenges as they arise."

"The real significance of the research project however, will be the improvement of a fundamental service provided to our society by a large number of small firms in Australia."