Not substantial, hence of little concern if they are lost. Including autonomy in discipline of its members. Setting of accounting standards. Recognition by the public and government that new competing professional organizations need not be created to serve the public. |
The original accounting treatments for the Chewco and LJMI transactions were wrong. Transactions were otherwise aboveboard and disclosed the proper information necessary to be properly audited. Employees enriched themselves by millions without proper approvals. Partnerships were established and used to enter into various transactions that could not be arranged with independent entities; were designed to five favorable financial results; and did not conform to U.S. accounting rules. |
the codes are essentially identical, so only one code needs to be learned. regardless of various state or local codes, the national code will control its members. convergence of all organizations toward global ethical principles holds promise to improve ethical governance of the accounting profession. the AICPA should set worldwide standards. |
the professional accountant cannot find another job. unsuspecting shareholders will be left to their fate. the accountant’s professional reputation can be improved. trust of the public will be maintained.
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engage in discreditable acts. advertise and solicit business, even if it involves some harassment of potential clients. disclose clients’ confidential information, only after the client engagement is completed. avoid engagements where independence will be impaired.
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Principles Rules of Conduct Interpretation of the rules Ethical rulings |
are so important because a conflict of interest can threaten to undermine the reason for having an accounting profession. are not so important, since we know that no one can really be “independent” of their own self interest. are unlike the independence requirements of any other profession. can be considered not applicable when the accountant is a fiduciary.
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This is a normal practice. This could give management an opportunity to influence the judgment of the auditor. Corporate boards should negotiate and approve the audit fee. All of the above are true. |
most students are already prepared for the ethical decisions they will face. there is significant growth in moral reasoning that is possible and desirable. educational materials need to be focused strictly on GAAP concepts and principles. use of realistic cases are likely to be of little use in providing students with a better understanding of oral reasoning. |
Because if more than one stakeholder is involved, the interests of various stakeholders must be considered. Outcomes of such decisions are difficult to predict, so consequences may be uncertain. The outcome of the decision is subject to scrutiny by others, after the fact. All of the above are true. All are false. In fact, accountant’s ethics decisions are almost always straightforward, and the problem is merely that most accountants lack the will to “do the right thing.”
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Would I be comfortable if this action or decision were to appear on the front page of a national newspaper tomorrow morning? Does my father’s ethics matter in this decision? Will my mother be proud of this decision? Does this feel right to me?
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there is a paradigm shift towards accountability to stockholders versus stakeholders. corporations should consider their strategic goals in their operations and reporting with concern for who they wish to appear as a corporate citizen. it is really not possible at this time to report on a company’s social responsibility. social responsibility is best limited primarily to political donations and intervention in government processes through lobbyists.
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expanding legal liability for corporate directors. a lack of advertising ability for accountants. management assertions to shareholders on the adequacy of internal controls. a stated intention to manage risk and protect reputation.
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Fiduciary failure Inappropriate Conflicts of Interest Lack of Independence Allowed the SPEs to be separate from Enron |
Beliefs about ideals, about what is good or desirable or worthy of pursuit for its own sake. Inquiry about ways of life and rules of conduct Rules laying down what ought to be done and what ought not to be done Motives that incline us to choose the right or the wrong course
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