Creve Couer Pizza
Creve Couer Pizza, Inc.
In this case the ethical aspects primarily involved the American Institute of Certified Public Accountants (AICPA) as James Checksfield was serving as Creve Couer’s CPA. However, the professional standards set for accountants by the Institute of Management Accountants (IMA) and the AICPA share close similarities. Both organizations emphasize that accountants follow a code of ethics when performing their duties. The members must use these ethical principles when engaging in accounting services for their company and the general public. The organizations note the following ethical standards: competence, confidentiality, integrity and credibility. The ethical principles are based on honesty, fairness, objectivity and responsibility.
Both the AICPA and the IMA stress integrity in their ethical standards which prohibits managerial accountants from engaging in unethical conduct. Integrity refers to behaving consistently with what is right and maintaining the appearance of what is right. In order to do what is right, the accountant must remain honest with their customers, even when the information shared is negative. Confidentiality requires accountants to disclose information only at their supervisor’s discretion. The accountant needs to respect the privacy of the customer and keep the information confidential. The most significant exception to the confidentiality rules is that accounting professionals ' work papers are subject to subpoena by a court which is nothing analogous to the attorney-client privilege. According to the AICPA and the IMA, accountants must remain credible in their responsibilities. Credibility refers to the accountant’s ability to communicate accounting information fairly and objectively to all business stakeholders.
Both organizations highlights the fact that a failure to report negative information or use a company’s internal financial information for personal gain can create serious legal situations for the clients,
In this case the ethical aspects primarily involved the American Institute of Certified Public Accountants (AICPA) as James Checksfield was serving as Creve Couer’s CPA. However, the professional standards set for accountants by the Institute of Management Accountants (IMA) and the AICPA share close similarities. Both organizations emphasize that accountants follow a code of ethics when performing their duties. The members must use these ethical principles when engaging in accounting services for their company and the general public. The organizations note the following ethical standards: competence, confidentiality, integrity and credibility. The ethical principles are based on honesty, fairness, objectivity and responsibility.
Both the AICPA and the IMA stress integrity in their ethical standards which prohibits managerial accountants from engaging in unethical conduct. Integrity refers to behaving consistently with what is right and maintaining the appearance of what is right. In order to do what is right, the accountant must remain honest with their customers, even when the information shared is negative. Confidentiality requires accountants to disclose information only at their supervisor’s discretion. The accountant needs to respect the privacy of the customer and keep the information confidential. The most significant exception to the confidentiality rules is that accounting professionals ' work papers are subject to subpoena by a court which is nothing analogous to the attorney-client privilege. According to the AICPA and the IMA, accountants must remain credible in their responsibilities. Credibility refers to the accountant’s ability to communicate accounting information fairly and objectively to all business stakeholders.
Both organizations highlights the fact that a failure to report negative information or use a company’s internal financial information for personal gain can create serious legal situations for the clients,
References: AICPA. (2011, June 01). Aicpa american institute of cpas. Retrieved from http://www.aicpa.org/research/standards/codeofconduct/downloadabledocuments/2011june1codeofprofessionalconduct.pdf Ariail, D. L., Smith, M. M., & Smith, L. M. (2009, April). Representing clients with tax delinquencies and deficiencies. Retrieved from http://www.journalofaccountancy.com/Issues/2009/Apr/20081290.htm IMA. (2011, June 01). IMA - The association of accountants and financial professionals working in business. Retrieved from http://www.imanet.org/PDFs/Public/Press_Releases/STATEMENT%20OF%20ETHICAL%20PROFESSIONAL%20PRACTICE_2.2.12.pdf