The Contributing Liberty ethical model is a quasilibertarian
ethical perspective that emphasizes the
centrality of individual rights while advocating minimal
governmental influence (Votaw, 1974). The
encompassing role of government, however, includes
protection of society against fraud, theft, and contract
violation (Nozick, 1974) – issues implicit within the
scope of a business’s duties to society and the auditor’s
responsibilities in asserting the accuracy of a firm’s
financial statement. A fundamental assumption of the
Contributing Liberty ethical model is that individuals
are entitled to the assets that they earn by providing
benefits to others (De Gregori, 1979). The value of
those assets is determined within the context of a free
market, and individuals within a society should have a
right to pursue goals that do not impinge upon the
rights of others (De Gregori, 1979). To the degree that
business executives or accountants would misrepresent
the worth of their company in a financial statement
or that an auditor would certify the financial
health of a business entity in the face of reasonable
knowledge that the company is not in the condition
reported in the financial statement, those actions
would violate the Contributing Liberty ethical model.