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AICPA Ethics & COSO Framework for Internal Controls - Essay Example

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Masters
Author : jayce56
Essay
Finance & Accounting
Pages 9 (2259 words)

Summary

As a member of the AICPA, Harold Potter has some responsibilities to his customers and the wider society. This is because the AICPA has rules that each member has to adhere to…

Extract of sample
AICPA Ethics & COSO Framework for Internal Controls

The first issue is about how Harold Potter gained employment and shares with Dumbledore Enterprise, a public company. Being supported by his uncle to gain entry to the company is not a serious issue. However, once he gained membership to the AICPA, there were implications that made his continuous involvement in Dumbledore risky. Section 101.01 states that a person should be independent in performance of professional services (Independence, 2011 para 1). This therefore means that once he was connected to Dumbledore as a previous employee and a shareholder, he would lose his independence and could not provide services for the company. Upon graduation, Harold decides to describe himself as 'Accountant' on his business card. Section 57 Scope & Nature of Services states that Members “...should observe the principles of the Code of Conduct in determining the scope and nature of services to be provided.” (Scope & Nature of Services, 2011 para1). There are issues with this description because although he was qualified, he did not have the required level of experience to be considered a member. This therefore means that it was unethical for him to present himself as an accountant when he was not a full member. ...
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