ACC 5400 Study Guide - Midterm Guide: Client Confidentiality, Professional Code Of Quebec, Employee Benefits
13 Oct 2018
School
Department
Course
Professor
Chapter 4
Resolving Ethical Dilemmas
1. Obtain the relevant facts
2. Identify the ethical issues from the facts
3. Determine who is affected
4. Identify alternatives available to the person who must resolve the dilemma
5. Identify the likely consequences of each alternative
6. Decide the appropriate action
Why is it important for professionals to act ethically?
1. Public cannot independently judge the quality of our work and must rely on us
2. Required by profession to follow professional code of conduct
3. Advertise the fact that we are CPAs implies we act ethically
4. Selfish interest: value of business would decline
Principles: ideal standards of ethical conduct stated in philosophical terms (provide framework)
Rules: min. standards of ethical conduct, stated as rules
Interpretations: interpretations of the rules of conduct issued by the AICPA ethics division ( must
justify departure)
Responsibilities
- members should exercise sensitive professional and moral judgments in all their activities
public interest
- to act in a way that will serve the public interest, honor the public trust, and demonstrate
a commitment to professionalism
integrity
- Requires a member to be honest and candid within the constraints of client
confidentiality
- Service and the public trust must not be subordinated to personal gain and advantage
Objectivity and independence
- should maintain objectivity and be free of conflicts of interest in discharging professional
responsibilities. Members in public practice should be independent in fact and appearance
when providing auditing and other attestation services.
Due care
- competence and diligence
- concern for interests of those for whom services are performed
3 step process (Framework for independence0
1. identify circumstances
2. evaluate significance of the threat
Document Summary
Principles: ideal standards of ethical conduct stated in philosophical terms (provide framework) Rules: min. standards of ethical conduct, stated as rules. Interpretations: interpretations of the rules of conduct issued by the aicpa ethics division ( must justify departure) Members should exercise sensitive professional and moral judgments in all their activities public interest to act in a way that will serve the public interest, honor the public trust, and demonstrate a commitment to professionalism integrity. Requires a member to be honest and candid within the constraints of client confidentiality. Service and the public trust must not be subordinated to personal gain and advantage. Objectivity and independence should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. Members in public practice should be independent in fact and appearance when providing auditing and other attestation services. Due care competence and diligence concern for interests of those for whom services are performed.
