What role did the Accounting profession play in the recent subprime mortgage crisis? What could they have done differently?
There were many factors that led to the subprime mortgage crisis; low interest rates, greedy asset managers, and a booming housing market, to name a few. None were, in my opinion, more responsible for the crisis than the banks (lenders) and buyers (borrower). The banks approved loans for buyers who, one could not afford the loan, nor did not have the credit history to get the loan. Subprime borrowers were tricked into innovative mortgage products such as, 12/24 month adjustable-rate mortgages, interest-only loans, piggy-bank and the notorious negative amortization loans (Denning, 2011). These loans proved to be the catalyst that fueled the crisis in 2006.
Accounting professionals played a role in the crisis, however, I feel that it was a small one. I say small due to the fact that, while they are professionals, they are still people. People with families, bills, and other obligations. I think that the pressure of having an employer pay them more because they are making more was a deciding factor for not blowing the whistle on questionable financial practices.
The text speaks of ethics and unqualified, or clean opinions. “An unqualified opinion is not a clean bill of health about either the current financial condition or future prospects of the entity”. Knowing this we can surmise then even if the accounting professional did raise the flag on the risky behaviors, the deals were already done. This problem had to be dealt with at the point of origin between the lender and the borrower. In respect to ethics the text states that “an accountant who lacks integrity and/or objectivity cannot be relied on to produce complete and relevant information with which to make an informed decision”. Who is to say that accounting professionals didn't speak out? What would have happen to the one that spoke out about these questionable practices?
In Dinning’s article he cites Masters of Nothing: How the Crash Will Happen Again Unless We Understand Human Nature by Matthew Hancock and Nadhim Zahawi, saying that people who blew the whistle were sidelined or ignored in order to keep the flow of money into their organization. The mix between self-preservation and the fear of reprisals is the reasons I believe that we cannot place much blame on the accountants. They could have, however, kept raising the flag and speaking out until someone listened.
In conclusion, the subprime mortgage crisis was a global event that could have been prevented through the use of ethical practices at all levels. We cannot put blame on one singular entity, it was a team effort so-to-speak. Borrowers must educate themselves on the particulars of a loan prior to the transaction and lenders need not create “innovative” ways to make more money at the expense of their customers. If this is done the next crisis may be avoided.

References
Accounting- Present and Past. (2011). In Essentials of business development 1(2nd ed., pp. 7-15). New York: McGraw-Hill Create.
Denning, S. (2011, November 22). Lest We Forget: Why We Had A Financial Crisis. Retrieved from http://www.forbes.com/sites/stevedenning/2011/11/22/5086/

Crash course. (2013, September 07). The Economist. Retrieved July 01, 2014, from http://www.economist.com/news/schoolsbrief/21584534-effects-financial-crisis-are-still-being-felt-five-years-article

The Economist. (). The origins of the financial crisis: Crash course Sep 07, 2013. New York, NY: Alacra Store. Retrieved Jul 01, 2014 from <http://news.alacrastore.com/economist/The-origins-of-the-financial-crisis-Crash-course-EN_EN_MAIN_20130907T000000_0089> - See more at: http://news.alacrastore.com/economist/The-origins-of-the-financial-crisis-Crash-course-EN_EN_MAIN_20130907T000000_0089#sthash.SWhZKEHU.dpuf

moot