Good Works, Bad Accounting?
Ethics Project Part II
Section 55- Article IV: Objectivity and Independence:A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be indpeending in fact and appearance when providing auditing and other attestation services. .01 Objectivity is a state of mind, a quality that lends value to a member’s services. It is a distinguishing feature of the profession. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest
2011
Dilshan Jayakody, Matthew Marzicola, Suzanne Duffy
Accounting BH201.01
4/19/2011
In this situation the stakeholders
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Specifically, Charly is playing with the idea of manipulating the financials in order to hoax Lyn into giving her quarterly donation. Charly has proposed taking money from the restricted funds by allocating the precipitously large administrative expenses to the childcare programs, which are provided for by Lyn’s donation. She reasons that overhead allocations are just estimates, so they don’t need to be accurate in the short-term. Also, she points out that this would be “legal” under Lyn’s contract of how she wishes the money to be spent. After the donation is made, Charly proposes that the numbers be changed back to normal as to avoid any further accounting dillemas.
The ethical conditions that exist are numerous. Merriam-Webster’s definition of Ethics are as follows: 1) The discipline dealing with what is good and bad and with moral duty and obligation 2) a: a set of moral pirnciples: a theory of system of moral values 3) b: the principles of conduct governing an individual or a group
Furthermore, most companies define in their Code of Conduct their corporate responsibility. UBS defines theirs as such, “UBS we will uncompromisingly treat our reputation as our most valuable asset and we will protect it fiercely. Our culture and reputation are ultimately defined bythe actions and decisions that each of us makes every day.”
Firstly, Jill’s decision direct affects the long-lerm viability and
Article 8 gives examples on using the AICPA Code of Professional Conduct. The article gives the example of you taking over the role of handling the independence and ethical matters involved with auditing for a retiring partner in your firm. You are quickly given the task of determining whether or not your firm can provide auditing services to a client that owns a small, privately owned bank and a used car dealership. To perform work for the client you want to see the rules on how the firms will remain independent from the bank and car dealership, and you have a week to research any questions or concerns that you have with the potential client.
This post will discuss two ethical accounting dilemmas that could occur in the CPA profession. For each dilemma, it will explain how the dilemma could be resolved based on logic and reason. It will then support that proposed resolution through support from the American Institute of Certified Professional Accountants (AICPA) Code of Professional Conduct.
Ad hominem ethical fallacies; which attacks a person’s character rather than a person’s reasoning would be none existent making a change that would empower and persuade for the better.
The Allen family presented in the simulation has several health issues they deal with individually that contribute to the family unit. Clifford struggles with depression that he does not want to have documented or take medications for out of fear. Pam is the glue of the family; she keeps the home functioning and has not worked outside the family because their son was born with Down’s syndrome. Her time is spent caring for him and the home. She has a history of endometrial cancer and has gone 14 months without a check-up. Gary is an active special needs young man, he holds a job, participates in Special Olympics and Scouting. The family
* Bo and Mo do explicitly say that it is up to Kevin to decide how to increase his productivity.
Limited access to records and assets can really make it hard for someone in an organization to commit fraud. If the accounting department never has access to the actual money and the people in charge of the money have no access to the accounting of the organization other than sending them the info over that the
Ethics in any industry is important, but for Accounting professionals and those in need of their services, it is a particularly stressed element. Information provided by accountants is used to make major decisions, including investing, downsizing, expanding, etc, so accountants are expected to be competent, reliable, and have a high degree of professional integrity. Because of these high expectations, the professional accountancy industry, like many other professions, has adopted professional codes of ethics (Woelfel, 1986). These ethical codes go above and beyond the requirements for state or federal laws and regulations. There are several professional organizations within the
Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses forced regulators to revise the conceptual framework of accounting processes.
This case incorporates many ethical issues. While Candy was aware that her new position was going to be very demanding and that she would have to keep track of and properly document all government project-related work activities, she could have never imagined to be the situation that arose in the case study. The first ethical issue encountered in the case study is whether the CPA firm will be able to give truly independent reviews of the Artifice Company after one of their employees leaves to become controller at the company. The case does not mention how this issue was handled but it could been seen as an independence issue from the outside looking in. The CPA firm is required to maintain independence in appearance and fact so it could become a problem later if someone were to learn that a former employee of the CPA firm that took part in reviews and consulting is now acting as the company’s controller. An outsider may get the impression that the firm could rely on their former employee too heavily and not maintain professional skepticism. The next issue encountered is that a number of intercompany checks are being written to other business units and are being treated in a suspicious manner. The fact that these checks are being treated as capital contributions instead of revenue is a serious ethical issues because it not only could be considered
Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations, financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers, employees, and the general public. A CPA has to be responsible for their audits and take any punishments as a result of their mistakes, incompetence or illegal actions. CPAs are expected to have integrity in their work,
2) Freegard (2006) states: “Autonomy as an ethical principle encompasses the fundamental protection and respect of persons, and freedom from interference ... A competent client should have the right to decide what is to be done with his or her body” (p. 112).
"A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council". Rule 102, Integrity and Objectivity state that ' in the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to
Indonesia’s HIV/AIDS epidemic has been called as one of the fastest growing epidemics in Asia. With limited financial and human resources, Indonesia has not been able to fully implement their national strategies for combating the epidemic. In the cases where demand of health services outstrips available resources, it is necessary for decision makers to set the right priorities. To aid decision makers to achieve fair, rationale, and legitimate priorities an innovative approach is proposed by integrating the ethical framework of Accountability For Reasonableness (A4R) with the evidence-based method of Multi Criteria Decision Analysis (MCDA). A 5 year study design known as the PRISMA project is currently in plan to implement this approach for
Every organization has a set of ethical standards that they abide by. The organization ethical standards purposes: it build the organization confidence in the community , keep the employees uniformed in what the organization strive to have as organizational behaviors and help the employees have guidelines to make ethical decisions that protects the organization.
Codes of conduct are policies including rules such as maintaining honesty, attitude, and respect (Traveler, 2009) for co-workers, the organization and customers. Only by separation of personal ethical choices in the work place, will an organization succeed and flourish. It is never appropriate for any employee, management or otherwise, to conduct business for personal gain. The people who become harmed lose trust, confidence, and the expectation of themselves and of the people who chose to put their personal ethical choice before the needs of the customer and business.