ACC562 Assignment 1 - Week 3: Assignment #1 Week 3:...

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Week 3: Assignment #1 1 Week 3: Assignment #1 ─ Case 3C “Creve Couer Pizza, Inc” Strayer University Week 3: Assignment #1 ─
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Week 3: Assignment #1 2 Case 3C “Creve Couer Pizza, Inc” Discuss Whether or Not CPAs Who Provide Accounting, Taxation, and Related Services to Small Business Have a Responsibility to Serve as the “Moral Conscience” of Their Clients. Yes, CPAs who provide accounting, taxation, and related services to small businesses should have the responsibility to serve as the “moral conscience” of their clients. Moral conscience is a person’s inner voice which tells him or her whether his or her action is good or bad, right or wrong. It can urge a person to have good or right behavior and avoid evil. CPAs have a responsibility to serve as the moral conscience of their clients at times when they discover something is not proper. In addition, if the client intends to do something improper, the CPA should consult with them and explain that it is fraudulent. If the CPA chooses to be silent, he or she will violate the moral conscience and the ethical standard of the accounting profession. CPAs should maintain a high degree of professional integrity with competence and reliability, and make a promise to present the truth in a fair and accurate manner. The CPA’s reputation and career is on the line, so it is very important for him or her to act ethically. Some concepts of moral conscience in CPAs will be addressed as the following. Role of Moral Conscience in Accounting The CPA should has an ethical obligation to not subordinate professional judgment to the client’s demands, which may favor the client’s interests but harm the public trust, or for a CPA firm/employer gain as well as advantage. The moral conscience plays an important role in making judgments and ethical decision when conflicts exist between the public interest and duties to a client and a CPA firm/employer (Mintz, 1995). For example, a difference of opinion exists between the CPA and the client’s top management over the proper financial statement treatment of an item in question. The client may expect the CPA to go along with the client’s
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Week 3: Assignment #1 3 position out of a duty of loyalty and because the client pays the fee for the professional’s services. Similarly, the CPA firm may expect the CPA to not take any action that might jeopardize the client relationship. However, the CPA’s obligation of loyalty does not include agreeing with the client’s position when it is improper. Loyalty requires that the CPA should be faithful the client’s interests by maintaining the confidentiality of client information and by performing professional services reliably and dependably. The moral conscience enables CPAs to resolve conflicting duties and loyalties in a morally appropriate way because it provides the inner strength of character to withstand pressures that might otherwise overwhelm and negatively influence professional judgment and ethical decision-making. That is, the moral conscience
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ACC562 Assignment 1 - Week 3: Assignment #1 Week 3:...

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