The Code keeps the CPAs mind on the public helping them practice their professions ethically while seeking the best interest of their clients. Without the AICPA Code of Professional Conduct there would not be any guidelines for CPAs to follow, and there would be no set personal boundaries for them submit to. The Code is a standard, set by CPAs for CPAs, to promote ethical responsibilities that favor the collective well-being of the community of people and institutions the profession
The employees must keep company’s tangible assets and knowledgeable things. The company and its employees have obligation to protect their tangible and intangible assets. Generally, the protection of assets is most important part in profit entities. County of San Diego and G.M Financial conduct their businesses that elementally trust employees. Nevertheless, the reason that company adopts the code of ethics is forbid to fraud, theft, and corruption by
The most important purposes behind the Code of Professional Conduct are to protect the investor, the employee, and the creditor. These are important because it is these people that make the company what it is. The people that see the financial statements for a company deserve to know the truth about how the company is doing and these rules are put into place to ensure that. If financial information is misstated the investors may think a company is
Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm. The authors of the report must certify that the report does not contain any false information, misleading statements or significant omissions, and that the financial statements and information included in the report accurately represent the financial condition of the company. Under Section 401 of the act, this representation must account for both balance and off-balance sheet debts, obligations and transactions in order to facilitate maximum transparency for shareholders (Nikolas, Daniel. Nd Effects of the Sarbanes-Oxley Act). The act serves as a guideline and governs what an accountant should and should not do when reporting financial flows.
Ethics are the moral principles and standards that guide an individual’s or a group’s behavior. Ethics are important to the planning process because they are used when deciding how to implement organizational activities to meet goals. For example, if an employee acting ethically has knowledge of his or her colleague using company resources such as a company vehicle to take care of personal responsibilities, the individual would not question what he or she should do about the situation. The right thing to do would be to report the incident, which could save the organization money and display the individual’s dedication to upholding standards in keeping with the organization’s best interests. The text provided details for why it is so important to follow the ethical norms of society.
It has two sub goals which are safeguarding from employee thefts and safeguarding from unauthorized use. These goals are in place to help ensure reliability and accuracy in accounting data. The purpose of internal controls is to help a company meet its stated mission as well as to avoid obstacles that stand in the way by giving access to information that allows a company to evaluate their progress and maximize the use of their resources effectively. It allows managers and administrators to respond in a fast manner to changes in the competitive and overall economic climate and modify their operations through the use of standardized, regulated information. ( Weygandt,Kimmel & Kieso, 2008) It is more than quite obvious that in business dealings all parties involved for do not always conduct themselves in an ethical manner.
At the same time the CPA must also maintain their obligation to the public as evidenced by their independence, integrity, and objectivity. A fundamental responsibility of the CPA is their concern for the confidentiality of client information. Responsibilities to colleagues: CPA and AICPA members should cooperate with each other to improve the art of accounting in an effort to gain public confidence and carry out the profession’s responsibility of
Moral common sense and critical thinking spell out values and rules in normative ethics for a business executive or an organization. Using ethical values, principles, and rules of thumb that guide decision making, Goodpaster spells out what a list of these might include: • Avoid harming others • Respect the rights of others • Do not lie or cheat • Keep promises and contracts • Obey the law • Prevent harm to others • Help those in need • Be fair • Reinforce these imperatives in others When the basic list of moral common sense judgments fail when making a moral or ethical decision, critical thinking criteria can clarify and resolve conflict. There are three avenues of critical thinking, and a moral common sense question that can be applied to each view. Utilitarianism, which is goal based, “What action or policy maximizes benefit/cost?” Contractarianism, which is rights based, “What action or policy most fairly respects rights?” Pluralism, which is duty based, “What action or policy reflects the stronger duty? (Goodpaster, 6) Jack Welch has, according to these views, incorporated an ethical and moral set of rules for leadership at GE.
AICPA Code of Conduct ETH/376 November 5, 2012 AICPA Code of Conduct The purpose of The American Institute of Certified Public Accountants (AICPA) is to provide services in the best interest of the public, clients, and employers. To support the mission the AICPA advocates, certifies, issues licenses, recruits, educates, focuses on standards, performance, and works with state certified public accountant organizations (American Institute of CPAs, 2012). The American Institute of Certified Public Accountants represents the Certified Public Accountants (CPAs) profession with regard to setting standards and rules for accounting professionals to follow with the public’s interest in mind. AICPA has developed standards geared
Partners need to trust that the spirit of the contract will prevail when those circumstances arise. Most business ethics philosophies center on one of three principles: the Golden Rule, Enlightened Self-Interest, and Utilitarianism (Cooke, 1990). The Golden Rule, “Do unto others as you would have them do unto you,” is widely disseminated inone form or another among theworld religions, and it has also re-ceived serious philosophical attention. Enlightened Self-Interest main-tains that you should not do thingsto hurt others because they other-wise will be motivated to practiceretribution. Utilitarianism in its coreform asserts that one should do thegreatest good for the greatest number of people.