6-2 Discussion Professional Practice
.docx
keyboard_arrow_up
School
Kennesaw State University *
*We aren’t endorsed by this school
Course
210
Subject
Accounting
Date
Apr 3, 2024
Type
docx
Pages
1
Uploaded by CaptainMosquitoMaster84 on coursehero.com
6-2 Discussion: Professional Practice.
The Responsibilities principle states that CPAs should exercise sensitive professional and moral judgments in all their activities. This means that CPAs should always act in the best interests of their clients and the public, and they should avoid any actions that could be seen as unethical or unprofessional.
There are many ways that CPAs can demonstrate the Responsibilities principle in their work. For
example, they can:
Be honest and transparent in all their dealings with clients and the public. Act with integrity and objectivity in their work. Be competent and knowledgeable in their field. Maintain the confidentiality of their client's information. Refuse to participate in any activities that could be seen as unethical or unprofessional.
Explanation: Violations of the Responsibilities principle can have serious consequences for CPAs. They could lose their licenses to practice, be sued by their clients, or even be prosecuted by the government.
Explanation: One example of a difficult situation that a CPA might face related to the Responsibilities principle is when a client asks them to do something that they know is unethical.
For example, the client might ask the CPA to inflate their financial statements to obtain a loan. In
this situation, the CPA would have to decide whether to comply with the client's request or to refuse and risk losing the client's business.'
The ethical response to this situation would be for the CPA to refuse to comply with the client's request. The CPA should explain to the client that they cannot do anything that they believe is unethical, and they should offer to help the client find a more ethical way to achieve their goals.
There are a few reasons why a CPA might be tempted to or accidentally not take an ethical course of action in this situation. They might be afraid of losing the client's business, or they might not want to lock the boat. However, CPAS need to remember that their professional ethics are more important than any individual client.'
If a CPA violates the Responsibilities principle, there are a few things that can be done to remediate the ethical issues. The CPA's firm could discipline the CPA, the AICPA could discipline the CPA, or the government could prosecute the CPA. The specific consequences of the violation will depend on the severity of the violation and the circumstances surrounding it.
In addition to the legal and professional consequences, there are also reputational consequences for CPAs who violate the Responsibilities principle. Their clients may lose trust in them, and they may have difficulty finding new clients.
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
20.
A primary purpose for establishing a code of conduct within a professional organization is to:
Group of answer choices
Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
Demonstrate acceptance of responsibility to the interests of those served by the profession
Reduce the likelihood that members of the profession will be sued for substandard work
Ensure that all members of the profession perform at approximately the same level of competence
arrow_forward
6. Which of the following Threats to The Fundamental Principles of professional ethics, that may occur as a result of the financial interests of a professional accountant in a client company.
a.
Advocacy threat
b.
Self-interest threat
c.
Self review threat
d.
Intimidation threat
arrow_forward
17. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services. Which of the following Fundamental principles of professional ethics matching with the above?
a.
Confidentiality
b.
Objectivity
c.
None of the options
d.
Integrity
arrow_forward
3. Explain in details and with examples the threats to compliance to the Fundamental principles of professional ethics.
arrow_forward
24. A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. Which of the following Fundamental principles of professional ethics matching with the above?
a.
Objectivity
b.
Integrity
c.
None of the options
d.
Confidentiality
arrow_forward
(a) You recently attended a lecture where it was stated that “professionals all over the world should be alive to their duties and not breach the ethics of their profession”. This statement was an affirmation of what you know that public interest and ethical standards should not be compromised by professionals in the discharge of their duties.
Required:
a. What is Professional ethics?
b. Briefly discuss the importance of professional ethics
c. Highlight the differences between rule based and principle-based
professional ethics
d. Discuss the inherent weaknesses of rule-based professional ethics
e. Discuss the advantages of principle-based professional ethics.
arrow_forward
A primary purpose for establishing a code of conduct within a professional organization is to:
a
Reduce the likelihood that members of the profession will be sued for substandard work.
b
Ensure that all members of the profession perform at approximately the same level of competence.
c
Demonstrate acceptance of responsibility to the interests of those served by the profession.
d
Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization
arrow_forward
3. Explain in details and with examples the threats to compliance to the Fundamental principles of professional ethics.
What are the safeguards against such threats? ( 500 words)
arrow_forward
Question 1
In order for public to have confidence in work perform by professional accountants it is essential to
have a system regulation. Regulation can take the form of both ethical and statutory guidance.
Required;
a) State the five threats contained within IESBA's Code of Ethics for professional Accountants and for
each threat list one example of circumstance that might create the threat.
b) Explain the Auditor's ethical responsibilities with regards to client confidentiality and when they
have obligatory responsibility to disclose client information on a voluntary responsibility to disclose
client information.
Compliance with the fundamental principles in IESBA's Code of ethics for Professional Accountants
can be threatened in a number of ways.
Required;
c) Explain each of the five fundamental principles of IESBA's Code of Ethics for Professional
Accountants.
d) List the five ethical threat to independence and objectivity and for each threat identify one
example of a circumstance…
arrow_forward
18. Which of the following is/are the general safeguards, to offset the Threats to Fundamental Principles of professional ethics?
a.
Continuing professional development requirements
b.
All the given options
c.
Professional standards
d.
Professional or regulatory monitoring and disciplinary procedures
arrow_forward
a) Describe an ethical dilemma. How does a person resolve an ethical dilemma?
b) Why is there a special need for ethical behavior by professionals? Why does the need for ethical requirements of Auditors differ from other professions?
c) Why is an auditor’s independence so essential?
NB:Please to provide answers question A, B and C
arrow_forward
37.
The following are value the auditors provide EXCEPT
Group of answer choices
Internal auditors serve the public and common interests by making sure that owners receive the return on their investments that they are entitled to, and that the means of generating those profits are within the confines of the law.
Internal auditors contribute to the principal-agent relationship by making sure that these duties are defined, that structures are set to ensure behaviors are aligned with these objectives and making recommendations to the board and senior management when there are discrepancies jeopardizing the success of these arrangements.
None of the choices
Internal Auditors can help management identify, plan for, and respond effectively to the primary and secondary stakeholders, the organization will encounter less pushback and it will likely be able to operate with fewer disruptions.
Internal Auditors are change catalyst.
arrow_forward
5. When members of the board have the capacity to challenge another's viewpoints, assumptions and beliefs and can still openly show respect, trust and candor, the environment created by this virtuous cycle that distinguishes exemplary boards is called ___________________________________.?
Culture of Ethical Board
Culture of Open Dissent
Culture of Transparency
Culture of Open Trust
Culture of Openness
arrow_forward
20. Which of the following is not a fundamental principle of ethics for Professional accountants?
a.
Integrity
b.
Advocacy
c.
Objectivity
d.
Confidentiality
arrow_forward
47.
Which of the following statements is/are correct?
Statement I. Independence is a fundamental ethical principle for internal auditors.
Statement II. Communication skills are also essential not only as it relates to fellow auditors, but also process owners and operators.
Statement III. Adding value and being perceived as trusted advisors to their organizations are perhaps the highest aspirations of internal auditors around the world.
Group of answer choices
Statements I and II
Statements II and III
Statements I, II, and III
Statement III only
PreviousNext
arrow_forward
Question 31
When CPAs are able to maintain an independent attitude in fulfilling their responsibilities, it is referred to as independence
Group of answer choices
In fact.
In appearance.
In conduct.
In total.
arrow_forward
What are the important points that can be learned from the the code of professional ethics.
What are the most recent ACFE Code of Professional Ethics, discuss in one or two sentences after each Code of Professional Ethics statement below and the meaning of the statement in simple words
CODE OF PROFESSIONAL ETHICS
An ACFE Member shall, at all times, demonstrate a commitment to professionalism and diligence in the performance of their duties.
An ACFE Member shall not engage in any illegal or unethical conduct, or any activity which would constitute a conflict of interest that has not been properly disclosed to the appropriate parties.
An ACFE Member shall, at all times, exhibit the highest level of integrity in the performance of all professional assignments, and will accept only assignments for which there is reasonable expectation that the assignment will be completed with professional competence.
An ACFE Member will comply with the lawful orders of the courts, and will testify to…
arrow_forward
1. Confidential issues at work include:
A. Reports, client matters, and employee information
B. Anything your boss tells you not to share
C. Both Reports, client matters, and employee information and Anything your boss tells you not to share
D. None of these
2. The third level of ethics is checking if a behavior:
A. Is fair
B. Is legal
C. Affects your conscience
D. All of these
E. None of these
3. Ethical behavior:
A. Is reflected in your dependability
B. Extends to how you deal with others
C. Is reflected in how you conduct yourself
D. All of these
E. None of these
arrow_forward
S1: Where a conflict of interest poses a threat to one or more of the fundamental principles that cannot be eliminated or reduced to an acceptable level through the application of safeguards, the professional accountant in public practice should conclude that it is not appropriate to accept a specific engagement.
S2: A professional accountant in business should only undertake significant tasks for which the professional accountant in business has, or can obtain, sufficient specific training or experience.
S3: It is not appropriate for the engagement team to use of advisory services provided by other firms, professional and regulatory bodies, or commercial organizations that provide relevant quality control services.
A. Only 1 statement is True
B. Only 2 statements are True
C. All statements are True
D. All statements are False
arrow_forward
Public officials must not only do technical things correctly but they also must do ethically correct things. (Dutelle, 2011)(A) Discuss the five basics of public sector ethics?
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Accounting Information Systems
Finance
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Related Questions
- 20. A primary purpose for establishing a code of conduct within a professional organization is to: Group of answer choices Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization. Demonstrate acceptance of responsibility to the interests of those served by the profession Reduce the likelihood that members of the profession will be sued for substandard work Ensure that all members of the profession perform at approximately the same level of competencearrow_forward6. Which of the following Threats to The Fundamental Principles of professional ethics, that may occur as a result of the financial interests of a professional accountant in a client company. a. Advocacy threat b. Self-interest threat c. Self review threat d. Intimidation threatarrow_forward17. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services. Which of the following Fundamental principles of professional ethics matching with the above? a. Confidentiality b. Objectivity c. None of the options d. Integrityarrow_forward
- 3. Explain in details and with examples the threats to compliance to the Fundamental principles of professional ethics.arrow_forward24. A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. Which of the following Fundamental principles of professional ethics matching with the above? a. Objectivity b. Integrity c. None of the options d. Confidentialityarrow_forward(a) You recently attended a lecture where it was stated that “professionals all over the world should be alive to their duties and not breach the ethics of their profession”. This statement was an affirmation of what you know that public interest and ethical standards should not be compromised by professionals in the discharge of their duties. Required: a. What is Professional ethics? b. Briefly discuss the importance of professional ethics c. Highlight the differences between rule based and principle-based professional ethics d. Discuss the inherent weaknesses of rule-based professional ethics e. Discuss the advantages of principle-based professional ethics.arrow_forward
- A primary purpose for establishing a code of conduct within a professional organization is to: a Reduce the likelihood that members of the profession will be sued for substandard work. b Ensure that all members of the profession perform at approximately the same level of competence. c Demonstrate acceptance of responsibility to the interests of those served by the profession. d Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organizationarrow_forward3. Explain in details and with examples the threats to compliance to the Fundamental principles of professional ethics. What are the safeguards against such threats? ( 500 words)arrow_forwardQuestion 1 In order for public to have confidence in work perform by professional accountants it is essential to have a system regulation. Regulation can take the form of both ethical and statutory guidance. Required; a) State the five threats contained within IESBA's Code of Ethics for professional Accountants and for each threat list one example of circumstance that might create the threat. b) Explain the Auditor's ethical responsibilities with regards to client confidentiality and when they have obligatory responsibility to disclose client information on a voluntary responsibility to disclose client information. Compliance with the fundamental principles in IESBA's Code of ethics for Professional Accountants can be threatened in a number of ways. Required; c) Explain each of the five fundamental principles of IESBA's Code of Ethics for Professional Accountants. d) List the five ethical threat to independence and objectivity and for each threat identify one example of a circumstance…arrow_forward
- 18. Which of the following is/are the general safeguards, to offset the Threats to Fundamental Principles of professional ethics? a. Continuing professional development requirements b. All the given options c. Professional standards d. Professional or regulatory monitoring and disciplinary proceduresarrow_forwarda) Describe an ethical dilemma. How does a person resolve an ethical dilemma? b) Why is there a special need for ethical behavior by professionals? Why does the need for ethical requirements of Auditors differ from other professions? c) Why is an auditor’s independence so essential? NB:Please to provide answers question A, B and Carrow_forward37. The following are value the auditors provide EXCEPT Group of answer choices Internal auditors serve the public and common interests by making sure that owners receive the return on their investments that they are entitled to, and that the means of generating those profits are within the confines of the law. Internal auditors contribute to the principal-agent relationship by making sure that these duties are defined, that structures are set to ensure behaviors are aligned with these objectives and making recommendations to the board and senior management when there are discrepancies jeopardizing the success of these arrangements. None of the choices Internal Auditors can help management identify, plan for, and respond effectively to the primary and secondary stakeholders, the organization will encounter less pushback and it will likely be able to operate with fewer disruptions. Internal Auditors are change catalyst.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAccounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengageBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Accounting Information Systems
Finance
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage