Creve Couer Pizza

1889 Words8 Pages
Creve Couer Pizza, Inc.
In this case the ethical aspects primarily involved the American Institute of Certified Public Accountants (AICPA) as James Checksfield was serving as Creve Couer’s CPA. However, the professional standards set for accountants by the Institute of Management Accountants (IMA) and the AICPA share close similarities. Both organizations emphasize that accountants follow a code of ethics when performing their duties. The members must use these ethical principles when engaging in accounting services for their company and the general public. The organizations note the following ethical standards: competence, confidentiality, integrity and credibility. The ethical principles are based on honesty, fairness, objectivity and
…show more content…
1681). When businesses think they are conducting themselves in an appropriate manner, and their accountant does not inform them otherwise, the accountant has not provided their client with the due care required.
Within the context of accounting related services provided for small businesses, CPAs hired by the business owners are responsible for ensuring their client is within the confines of accounting rules, and accounting laws, specifically tax laws. CPAs are to advise their clients of changing statuses in tax laws, audit rules, and interpretations of generally accepted accounting principles (GAAP). It is the CPAs responsibility to advise all clients as to when certain activities may cross the line of being unethical and be made aware that such actions are inappropriate and unacceptable. The CPA’s reputation and career is on the line, so it is very important for them to act accordingly and in an ethical matter.
Question 2 - Moral and Professional Responsibility
Moral responsibilities are subjective and defined by individuals. Therefore, auditors have a professional responsibility to the accounting profession to turn in clients who are cheating on their taxes or violating other laws. Although it is expected for professional accountants to have morals that mirror the AICPA’s code of conduct for professional responsibility, that is not always the case. Rule 301 was used to

More about Creve Couer Pizza

Get Access