This paper examines some of the ethical violations committed by members and the corresponding penalties and sanctions imposed on these erring accounting members. There is an urgent need to remind members how important it is to follow these rules in the performance of their assignments so that high ethical standards can be maintained and avoid controversies. In this connection, it is important for the profession to be strict with regards to observing standards formulated by its professional bodies in terms of accounting and auditing ethics and conduct. A member must at all times endeavor to observe the code of conduct that governs their profession. Rule 102 – this rule pertains to integrity and objectivity. This means accountants should maintain at all times honesty in performing his work and avoid conflicts of interest that may be damaging to that integrity and objectivity by assiduously observing independence. Expectations of the code is a CPA will not knowingly misrepresent facts, make materially false or misleading entries or fails to correct those erroneous entries when there is an opportunity to rectify them. Violations of this rule was shown in the case of Mr. Robert E. Allgyer of Lake Forest, in the state of Illinois, for alleged violations of the Codes of Professional Conduct of the AICPA and also in relation to Securities and Exchange Commission (SEC) Rule 102 (e) about a rendition of professional services for Waste Management, Inc. wherein there was improper conduct by him. The integrity of Mr. Allgyer was questionable due to his issuance of an Order instituting Public Administrative Proceedings which the SEC construed as negligence on his part. However, Mr. Allgyer entered into a compromise settlement with the SEC in which he was fined $50,000 and also suspended from his professional practice for two years, with a right to re-apply for the privilege of practicing before the SEC only after the lapse of five years. I think the disciplinary actions taken against him were too harsh (professional suspensions) considering that he paid the substantial civil monetary penalty of $50,000 (AICPA, 2012b, p. 1). Rule 102 (e) of the SEC now allows it to sanction any individual CPA in addition to public accounting firms, the firms they worked for and their audit committees. This new rule change refers to negligence on the part of individual CPA which constitutes as improper conduct and a violation of professional standards of conduct applicable in the instant case (With a controversial change to rule…, 1999, p. 1). Rule 201 – this rule refers to professional competence and care with regards to handling of financial documents. It means any member must be competent in terms of academic theories (continuing professional education credits or CPE) and adequate work experiences. Moreover, this rule requires due professional care during rendition of any professional services by ensuring proper planning before any work is started, make adequate supervision during the performance of professional services and ascertain if there are enough valid data, documents and all relevant information for a reasonable conclusion or a proper recommendation with regards to all services standards (NYSSCPA.org, 2009, p. 1). A case in violation of this rule
CODE OF PROFESSIONAL ETHICS AND CONDUCT (Accounting Ethics) Name of Student (author) Student ID Number: Name of of School (University) Address of the School Estimated Word Count = 1,003 March 09, 2012 CODE OF PROFESSIONAL ETHICS AND CONDUCT The accounting profession has formed its own body that governs the actions of all its members in the conduct of their auditing, accounting and other services…
The Code of Professional Ethics and Conduct provides certain specific guidelines for accounting practitioners in their professional career. It is based on these guidelines they are supposed to fulfill obligations of their clients thereby keep up the standards of the Apex Body.
Numerous analysts and researchers have made their proposals on the need to incorporate ethics in the business organizations. However, it is imperative to note that the codes of conduct have had massive impacts on the leaders of various organizations today.
Healthcare is one of the major pillars of the society. Owing to its importance, it has been accorded high attention and various medical practitioners have been trained to ensure quality service. Medical professionals include doctors, pharmacists, laboratory specialists, physiotherapists and nurses among others.
These sections are set to administer the performances of professional services by the certified public accountants (CPAs) and other members. The members include individuals in public practice, industries, parastatals and in education during the execution of their professional responsibilities.
With regards to my particular field of study, graphic design, I must closely examine the PRSA as well as the GDC professional code of ethics. It is also important to recognize other ethical codes that we so far learned in this semester and apply them to our professional codes.
A code of ethics for the Accounting professionals is important in regulating the conduct of the Accounting professionals. The code of conduct guides the professionals and therefore make sure that all ethical dilemmas can be resolved amicably. The code of ethics is useful in making sure that the values of the professionals are in agreement with the expectations of the society.