The aicpa code of professional conduct indicates that threats to independence accounting essay

Tow Hart, CPA, does the bookkeeping, prepares the tax returns, and performs various management services for Sanders, Inc. One management service involved the assessment of the computer needs and the identification of equipment to meet those needs, Hart recommended a product sold by Computer Co.

The aicpa code of professional conduct indicates that threats to independence accounting essay

CConflict of Interest in Four Professions: The professions evaluated here—law lawyersaccountancy certified public accountants [CPAs]architecture, and engineering—each differ from medicine in having clients or employers rather than patients as the focus of concern.

The difference is not simply one of terminology. A client or an employer is not necessarily human. Many are corporations or governments.

Even the human clients differ from patients. With some exceptions e. A client or employer simply asks that something be done a building put up, a machine designed, a contract drawn, or a company audited.

Emergencies are much rarer in these professions than they are in medicine, and time to think through a problem is more plentiful.

The aicpa code of professional conduct indicates that threats to independence accounting essay

Because of their relative sophistication and bargaining strength compared both with patients and with the professional in questionclients or employers need not readily consent to accept the conflicts disclosed to them; they are more likely to insist that a conflict be avoided or resolved or to use the conflict to better the bargain.

In other words, law, ac counting, architecture, and engineering are professions in which one might expect much less concern with conflicts of interest than in medicine.

Although these are the chief differences between medicine and the professions discussed here, they are not the only ones.

These other professions differ substantially in size from medicine—and from each other. Physicians outnumber architects in the United States by about 10 to 1, engineers outnumber physicians by about 3 to 1, and the numbers of individuals in the other professions fall somewhere in between.

Importantly, only one profession, engineering, does much that physicians would recognize as scientific research. The professions evaluated here were chosen because none is a close analogue of medicine.

Medicine tends to be the model for adjacent professions osteopathy, dentistry, pharmacy, nursing, and so on. The comparison of medicine with an adjacent profession would provide less contrast and therefore less understanding of conflict of interest as a general problem for professions.

All of the professions discussed here have substantial experience with employment in large organizations. Two of the professions—engineering and accounting—have a long history of employment in such organizations. Only a small minority of engineers has ever been self-employed in the way that most physicians, except those in research and teaching, were until recently.

Even self-employed architects, lawyers, and accountants often work for and in large organizations in a way that physicians have only recently begun to do in large numbers.

Looking at how these nonmedical professions respond to the conflicts of interest that are more likely to arise in large organizations should help physicians both look critically at present arrangements and anticipate the future. Finally, these professions all recognize conflicts of interest as posing a threat to the integrity of the profession and have developed ethics rules to address the threat.The AICPA Code of Professional Conduct indicates that in addition to integrity and objectivity, Rule emphasizes 1) being free from conflicts of interest between CPAs and others; 2) representing facts truthfully in reports and discussions; 3) not letting other people dictate or influence the CPA’s judgment and professional decisions.

(Solution) Re: Major Case Study » Full Grade

In the copy of the AICPA code of conduct, there is not a part that says that an auditor may not be friends with an audit client. 2) According to court testimony, on July 20, , Drew Bergman recommended to HMI’s boards of directors that Mei-ya Tsai be hired as the company’s chief accounting .

In the accounting world the AICPA, The American Institute of Certified Public Accountants, Code of Professional Conduct is considered to be the foundation of ethical reasoning in accounting. This is so because it is a code that has been established and agreed to by members of the AICPA.

To promote uniformity, NASBA formulates and publishes a Model Code of Professional Conduct that contains rules on independence and on integrity and objectivity.

The multiple sources of independence requirements suggest that redundancy is a problem. The AICPA has an excellent practice aid: Yellow Book Independence—Non-audit Services Documentation Practice Aid, which discusses an element of independence that is unique to GAS: The self-review threat (paragraph (b) of the Yellow Book).

Nov 04,  · Quality Standards and Ethics. MULTIPLE CHOICE: 1. The AICPA Code of Professional Conduct. b. Problem/Essay.

The aicpa code of professional conduct indicates that threats to independence accounting essay

John Block, CPA, has been approached by a prospective new audit client, Snappy Enterprises, Inc. Snappy had previously been audited by .

AICPA Code of Ethics | Essay Example