Ethics Against the Clock: Maintaining Integrity While Meeting Deadlines

Deadlines. They are consistently part of our work within the accounting and finance profession. At times, the pressure of completing work on time may conflict with our typical quality and review processes and standards. It is in these moments that our ethics and commitment to integrity may be challenged.

Every day, we face both extrinsic and intrinsic pressures in our work. Extrinsic pressures can come from our clients, colleagues, and regulators, while intrinsic pressures can come from our desire to maintain our individual and business reputations, motivate team members, and exceed clients’ expectations.

Importantly, pressure is one of the four elements of the Fraud Diamond, where it is specifically referred to as “incentive.” The Fraud Diamond, which was introduced in 2004 by David T. Wolfe, CPA, and Dana R. Hermanson, Ph.D., is an extension to the long-established Fraud Triangle, a model framework developed in 1953 by Donald R. Cressey, Ph.D., in an effort to understand the factors that lead individuals to commit fraud.

Another element of the Fraud Diamond is “rationalization,” which means justifying unethical or fraudulent behavior. When deadlines loom, and we are experiencing fatigue, scope creep, or late client responses, we can be tempted to justify shortcuts with various ways of thinking, such as:

• “The likelihood of audit (or someone finding out) is low.”
• “The team probably did it correctly.”
• “We do not have time to fix it.”
• “We are already over budget.”
• “It is close enough.”

These types of justifications are dangerous because being ethical is not about making yourself feel good about a decision; it is about doing what is right, even if it is difficult or inconvenient.

As humans, we are good at justifying our behavior. Even well-meaning professionals may fall into ethical dilemmas if they can justify the reasons for their behaviors, like skipping review, not fully documenting assumptions, or underreporting hours. However, these processes help to ensure quality and accuracy in the work being performed. If a deadline is prioritized over quality and accuracy, it can lead to serious consequences, including erosion of trust with clients and within the team, failure to meet regulatory standards, damage to both the firm’s and individuals’ reputations, and more.

One way to approach various time pressures that are inherent in our work is to apply project management techniques to help things run more smoothly. Here are a few to consider:

• Set clear scope expectations: Scope creep is a contributor to time and budget pressures. If a client is continually asking for more from you, determine if it is part of the original scope or should be considered a separate billable project. It is important to have signed engagement letters outlining the scope of work and then issuing new engagement letters or amendments to existing ones whenever there are changes. Internal projects are also subject to scope creep. If you are working on a special project, for example, it is easy for the scope to change or expand while you are working on it. Therefore, it is crucial to communicate new deadlines for additional work so you can clearly set expectations for the team and complete the project within a reasonable time frame.
• Define roles and responsibilities: Work goes better when people understand their responsibilities and there is a level of accountability on the team. In some instances, a responsible, accountable, consulted, and informed (RACI) matrix can help outline specific duties and responsibilities for team members. Gantt charts can also be used to set timelines for projects and, when used in conjunction with a RACI matrix, may improve clarity, promote more effective communication, and reduce confusion or duplication of work. Gantt charts can also define risks within a project, which can help identify key tasks to be completed to keep work on time and within budget.
• Track workload and capacity: When someone is responsible for monitoring the workload and capacity of team members, it can lead to quicker and more effective changes when people are out unexpectedly or get pulled onto a higher priority project. It can also help team members feel more valued when someone understands the work they are doing and how it contributes to the overall project. To best monitor team members’ workloads, hold regular meetings to discuss the statuses of projects and any obstacles that may be impeding progress or causing delays. These status meetings may also lead to timely workload shifts among the team and prevent opportunities to stray from the process since there is ongoing review of the work. Another tenet of the Fraud Diamond, “opportunity,” arises when projects are not adequately monitored, which creates conditions that make unethical behavior more likely.

Overall, communicating truthfully and transparently transcends each of these techniques and should be implemented throughout work projects, including debriefing meetings where team members can celebrate a project’s completion, discuss what went well, and brainstorm ideas for future processes.

While pressure cannot be completely removed from our work, project management principles such as these can help. As leaders, we can contribute to a positive working environment by imposing real and realistic deadlines. As team members, we can communicate early on in a project when we see something that may cause time or budget pressures to arise.

Of course, our own personal integrity defined as “doing what is right when no one is watching” also contributes to the culture of our project work and success of our teams. This idea brings us to “capability,” the fourth and final element of the Fraud Diamond, which determines whether a person has the right skills, knowledge, and position to commit a fraud. This element finds that people who inherently work more honestly, demonstrate strong character, and practice servant leadership are less likely to take unethical shortcuts even when presented with the incentive, rationalization, and opportunity to do so.

Ultimately, doing what is right under time pressure is a measure of ethical leadership and one that reinforces trust, integrity, and resilience within our teams.