Arens_Chapter4 - KIMEP Spring 2017 Ethics for and the Code...

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KIMEP, Spring 2017
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Ethics for and the Code of Ethics for Professional Accountants and Auditors Ethics refers to a system or code of conduct based on moral duties and obligations that indicates how we should behave. Professionalism refers to the conduct, aims, or qualities that characterize or mark a profession or professional person. All professions operate under some type of code of ethics or code of conduct.
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Learning Objectives 1. Distinguish ethical from unethical behavior in personal and professional contexts. 2. Resolve ethical dilemmas using an ethical framework. 3. Explain the importance of ethical conduct for the accounting profession. 4. Describe the purpose and content of the AICPA Code of Professional Conduct.
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Distinguish ethical from unethical behavior in personal and professional contexts.
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Ethics can be defined broadly as a set of moral principles or values. Each of us has such a set of values. We may or may not have considered them explicitly.
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Trustworthiness Responsibility Caring Respect Fairness Citizenship
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Ethical behavior is necessary for a society to function in an orderly manner. The need for ethics in society is sufficiently important that many commonly held ethical values are incorporated into laws.
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The person’s ethical standards are different from those of society as a whole. The person chooses to act selfishly.
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Person A finds a briefcase containing important papers and $1,000. He tosses the briefcase and keeps the money. He brags to his friends about his good fortune. This action probably differs from most of society.
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Person B faces the same situation but responds differently. He keeps the money but leaves the briefcase. He tells nobody and spends the money. He has violated his own ethical standards and chose to act selfishly .
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Resolve ethical dilemmas using an ethical framework.
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Ethical Dilemmas An ethical dilemma is a situation a person faces in which a decision must be made about appropriate behavior.
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Rationalizing Unethical Behavior Everybody does it Likelihood of discovery and consequences If it’s legal, it’s ethical
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1. Obtain the relevant facts 2. Identify the ethical issues from the facts 3. Determine who is affected
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4. Identify the alternatives available to the person who must resolve the dilemma 5. Identify the likely consequence of each alternative 6. Decide the appropriate action
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A staff person has been informed that he will work hours without recording them as hours worked. Firm policy prohibits this practice .
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  • Winter '16
  • Robert
  • Ethics , professional conduct, confidential client information

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