StudentShare solutions
Triangle menu

Code of Professional Ethics & Conduct (4) - Essay Example

Not dowloaded yet

Extract of sample
Code of Professional Ethics & Conduct (4)

Therefore, it institutes ethical requirements for the CPAs who are expected to comply with all parts of the code. However, a breach in one or several of the code requirements leads to disciplinary action administered by the relevant bodies (Crawford & Loyd, 2008). Rule 102: Integrity and Objectivity Paul T. Fink of the Eagan, Minnesota was suspected of a breach in Rule 102, the integrity, and objectivity code. The case entailed the suspicion of a breach in conduct with respect to performance of professional services as controller and chief financial officer of a publicly held entity. According to the code, a CPA “knowing misrepresentations in the preparations of financial statements or records, or permits or directs another to sign, a document holding significantly false and deceptive information” (AICPA, 2012). Mr. Fink was guilty of participating in backdating several shipping documents meant to correct on expiring letters of credit whose terms had been defaulted. There were other discrepancies detected in the bill of lading in the year 1996 that did not tally with the inland bill of lading signed the same year. He also signed forms 10-QSB in the second and third quarter of 1996 in full knowledge of the inability of the firm regarding the fulfillment of the contract terms of sale. After the completion of the investigations, Mr. Paul Fink was also guilty of violating Rule 102 on integrity and objectivity. Following the scrutiny of the evidence by the Joint Trial Board, Mr. Paul membership with AICPA was terminated and his practice certificates revoked. The disciplinary action taken on Mr. Paul was justified. This is because the CPAs perform a fundamental role in society. All the members of AICPA should be consistent with the requirements of the body (AICPA, 2012). Failure to do so, Mr. Paul failed to take the responsibility of representing his professional ethics as required thus breaching the stakeholders trust towards the body and the business. The AICPA can prevent this type of breach in the code of conduct by ensuring that the CPAs frequently observe their needed commitment to the code. The penalties administered should also be strict in order to curb further breach in the code. Rule 201: Professional Competence The code of professional competence requires a CPA to safeguard a clients’ data. Rule 201 states that “a member remains responsible for ensuring the accuracy and completeness of the services provided by third-party provider” (AICPA, 2012). Therefore, a CPA should provide professional services performed with professional competence and care. David Beck of Lexington allegedly violated the code in the year 2010 where he was accused of lack of professional services in relation with the audit of a business entity. In his practice, he failed to comply with the standards by failing to plan and conduct the engagement, failing to participate in the planning meetings and organizing the audit staffing (Rittenberg, Johnstone & Gramling, 2010). In addition, he failed to record the necessary documents and details of his audit procedures. After consideration of all the presented evidence, the Joint Trial Board found Mr. David Beck guilty of a breach in rule 201, Professional Competence. Moreover, he violated an AICPA Bylaw for failing to cooperate with Ethics Charging Authority by providing a substantive response to the investigation. As ...Show more

Summary

Code of Professional Ethics and Conduct Name Institution Code of Professional Ethics and Conduct The International Ethics Standards Board for Accountants (IESBA) established the Code of Professional Ethics and Conduct for Accountants. The code executed by the American Institute of CPAs consists of two sections namely the Principles and Rules (Duska, Duska & Ragatz, 2011)…
Author : uriah71
Code of Professional Ethics & Conduct (4) essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Code of Professional Ethics & Conduct (4)"
with a personal 20% discount.
Grab the best paper

Related Essays

Code of Professional Ethics and Conduct
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.
8 pages (2000 words) Essay
Code of Conduct
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.
5 pages (1250 words) Essay
Professional Code of Conduct NMC
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.
6 pages (1500 words) Essay
Code of Professional Ethics and Conduct
In this regard, this body is tasked to form its rules and regulations that govern all members in good standing. Accountants have been under fire recently due to some corporate scandals caused by the actions of some of its members who use creative, imaginative and aggressive accounting techniques in contravention of its standards.
3 pages (750 words) Essay
Critique of code of ethics
A written code of ethics serves as a guide in helping to determine what actions are unethical, and what are ethical and prescribed by the code. Thus the navy' s code of ethics serves as the link between ambiguity and accountability. Finally, it promotes leadership qualities and the concept to lead by example, which is necessary for any successful naval officer.
2 pages (500 words) Essay
Code of Ethics Paper
tified in 1991, they enumerated seven aspects of a successful corporate conformity program judges may perhaps consider when sentencing federal transgressions of corporations. Majority of public companies immediately realize the importance of integrating these elements into their
6 pages (1500 words) Essay
Code of Professional Ethics & Conduct (#4)
The members include individuals in public practice, industries, parastatals and in education during the execution of their professional
4 pages (1000 words) Essay
Ethics and Professional Code of Conduct
There are numerous reasons as to why ethics and integrity are important to police chief or county Sherriff. Ethics and integrity ensures that
2 pages (500 words) Essay
Personal Professional Ethical Code
Also referred to a corporate ethics, these are the moral principles guiding the behaviour in business (Shaw, 2008). Similarly, any organization would have a set of shared and acceptable rules. This acceptance could be conscious or subconscious, with the
5 pages (1250 words) Essay
Professional Code of Conduct Exercise
The CMAA code of ethics impresses on its members the need to heed the standards of practice. This requires them to uphold acceptable professional conduct and relevant laws (Ghillyer 12). The code also
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation