individual case 1 - unacceptable The CPA’s reputation and...

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1. CPAs who provide these types of services to small businesses should have the responsibility to serve as the “moral conscience” of their clients. When the CPA discovers something that is not proper or if the client wants to do something that is improper, the CPA should consult with them and explain that it is fraudulent. According to the AICPA code of conduct, “Rule 301 [ ET section 301.01 ] prohibits a member in public practice from disclosing any confidential client information without the specific consent of the client”. The whole purpose is to possess a high degree of professional integrity with competence and reliability. The AICPA Principles of Professional Conduct states that CPAs should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism. It is the CPAs responsibility to advise all clients as to when certain activities may cross the line of being unethical and be made known that such actions are inappropriate and
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Unformatted text preview: unacceptable. The CPA’s reputation and career is on the line, so it is very important for them to act accordingly and ethical. 2. Auditors should have a moral or professional responsibility to turn in clients who are cheating on their taxes or violating other laws. But, I believe they should only do it when they discover the act itself. This is when moral judgment comes into play. While performing their job if the auditors find out if their clients had been cooking their book, the auditors should warn them and let their clients know that they have rights to turn them in if they don’t stop. If it still continued, the auditors should stop the business relationship and are most likely have to report it. 3. If I were Jess, I would advise Rick that I must remain objective and adhere to high ethical standards. The parties that would be affected by the decision is the client, employer Work cited
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This note was uploaded on 02/19/2012 for the course ACCOUNTING 320 taught by Professor Rich during the Fall '12 term at Columbia College.

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individual case 1 - unacceptable The CPA’s reputation and...

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