AICPA Ethical Principles
Abstract Ethics is of most importance to accounting professionals and those who rely on their services. CPA’s have an obligation to serve their clients and the public with a strict code of ethics. The Code of Professional Conduct of the American Institute of CPAs (AICPA) establishes ethical principles and rules of conduct for its members. The principles set in place by the AICPA provide universal guidelines that CPAs should strive to follow.
CPA’s should serve as their client’s moral conscience. As professionals, they serve a critical role in society. They also have a responsibility to continue to improve their skills, maintain the public’s respect and confidence, and sustain their own self governance. CPA’s who are members of …show more content…
Again, auditors have a vital role in serving their clients and the public. Even if the auditor has worked for a client for 20 years, they have to treat each engagement as a new account and proceed with a certain degree of professional skepticism (Schiff, 2007). Auditors have to assume cheating or violation of laws can happen at any time with any client. Because auditors have no control over the information that is presented to them, there is plenty of room for dishonesty. Auditors are trained to detect tax fraud, which is a form of tax evasion. Some examples of what auditors find are a business with two sets of books, no receipts, and checks that have been altered to increase revenue. The Internal Revenue Manual instructs auditors who suspects their clients of tax fraud to contact the IRS criminal investigation …show more content…
I’d be placing myself in the position to be publicly scrutinized and take the chance of losing my livelihood. I would definitely lose the respect and trust of my client if I became an informant. My CPA license would be revoked and finding another job in my profession would be practically impossible. Even though the IRS would clear the slate as far as my obligations to them and present me with a monetary award, I’d still lose my job and career. My family then suffers because I am not going to be able to adequately provide for them without a career. They too, may suffer from public scrutiny because of my lack in good judgment. Last but not least, my client will be affected. They would probably have criminal charges brought against them and would feel betrayed by me, a professional that they trusted.
References
Colson, R.H. (2003, November). Standards of Behavior: Rules Are Not Enough. The CPA Journal. Retrieved October 24, 2010. From: http://www.nysscpa.org/cpajournal/2003/1103/dept/p80.htm.
Ethics in Accounting. (2010). eNotes. Retrieved October 24, 2010. From : http://www.enotes.com/business-finance-encyclopedia/ethics-accounting
Fraud and Tax Crimes. (2009). Retrieved October 24, 2010. From: http://www.taxattorneydaily.com/topics/ch-10-fraud-and-tax-crimes.php#the-auditor-
CPA’s should serve as their client’s moral conscience. As professionals, they serve a critical role in society. They also have a responsibility to continue to improve their skills, maintain the public’s respect and confidence, and sustain their own self governance. CPA’s who are members of …show more content…
Again, auditors have a vital role in serving their clients and the public. Even if the auditor has worked for a client for 20 years, they have to treat each engagement as a new account and proceed with a certain degree of professional skepticism (Schiff, 2007). Auditors have to assume cheating or violation of laws can happen at any time with any client. Because auditors have no control over the information that is presented to them, there is plenty of room for dishonesty. Auditors are trained to detect tax fraud, which is a form of tax evasion. Some examples of what auditors find are a business with two sets of books, no receipts, and checks that have been altered to increase revenue. The Internal Revenue Manual instructs auditors who suspects their clients of tax fraud to contact the IRS criminal investigation …show more content…
I’d be placing myself in the position to be publicly scrutinized and take the chance of losing my livelihood. I would definitely lose the respect and trust of my client if I became an informant. My CPA license would be revoked and finding another job in my profession would be practically impossible. Even though the IRS would clear the slate as far as my obligations to them and present me with a monetary award, I’d still lose my job and career. My family then suffers because I am not going to be able to adequately provide for them without a career. They too, may suffer from public scrutiny because of my lack in good judgment. Last but not least, my client will be affected. They would probably have criminal charges brought against them and would feel betrayed by me, a professional that they trusted.
References
Colson, R.H. (2003, November). Standards of Behavior: Rules Are Not Enough. The CPA Journal. Retrieved October 24, 2010. From: http://www.nysscpa.org/cpajournal/2003/1103/dept/p80.htm.
Ethics in Accounting. (2010). eNotes. Retrieved October 24, 2010. From : http://www.enotes.com/business-finance-encyclopedia/ethics-accounting
Fraud and Tax Crimes. (2009). Retrieved October 24, 2010. From: http://www.taxattorneydaily.com/topics/ch-10-fraud-and-tax-crimes.php#the-auditor-