Hello, Its me again, and I need your help. Sorry for short notice.
Hello,
Its me again, and I need your help. Sorry for short notice.
Thanks in advance ATTACHMENT PREVIEW Download attachment1. Do you agree with the authors that a code of ethics should domore than stablish minimum acceptable standards? Why? OrWhy not?Yes I agree that a code should do more than stablish minimum acceptablestandards. The minimum acceptable standards allow accountants andmanagement the use of loopholes and technical exceptions, as a result theyhave Fnancial statements that are in compliance with GAAP, but do notprovide a fair representation of the company in an ethical way. This situationserves as camou±age to problems that could be resolved if the accountantproceeds in an ethical manner but there is not such rule for this casebecause there are only minimum standards therefore there is noconsequence to this act. Stablishing more than minimum standards helps tokeep discipline in the profession and helps the accountants to understandthe values and aspirations related to ethics in every situation in a very clearmanner, it also inspires accountants to move forward with moral excellence,and most importantly to protect those who do the right thing.Whenever a code of ethics does not have enough rules to specify behavior indi²erent situations then the accountants would get into the habit of makingdecisions by themselves and not necessarily be under a code of ethics.2. Describe the Fve cardinal virtues of professional accountantsthat the article’s authors discuss.a) Integrity: Inside this cardinal virtue there are two elements: thehonesty which means the accountant has to be honest in hiscommunication with the client and the second is the courage whichmeans the accountant has to have the bravery to tell the true whenthe recipient is expecting a di²erent message. The integrity of theinformation is very important because dishonest information can resultin false Fnancial information; in addition the accountant has to be verycareful with the amount of information that he disclosures about theclient because this information can be hurtful for the client’s business.To conclude an accountant has to Fnd the proper balance betweentransparency and improper disclosure which requires a certain amountof skill and wisdom.
View the Answerb) Objectivity:The objectivity is when the accountant complies with hiswork with the standards in a technical and ethical way. In the ethicalaspect the accountant has to assure that the work was made under theethical standards, at least to the best knowledge and belief of theaccountant. In other words the judgment of the accountant cannot besubordinated to other interests except to comply with GAAP and IFRS;the objectivity imposes an obligation on all accountants to notcompromise their professionalism or business judgment because ofcon±ict of interest or the undue in±uence of others. The accountantreaches true objectivity when he ²nds a balance between non-compliance and over legalistic compliance with the standards.c) Diligence: The diligence can be expressed as how the accountantperforms his job being aware of all aspects and ready to identify, sort,prioritize and address red ±ags that signal potential weakness, fraud,or other problems within the accounting information system. In otherwords, the accountant is required to ensure that their work re±ectsprofessional competence as well as knowledge and skills. Being acareful professional that shows good judgment, planning andsupervisory skills, as well as being capable of gathering su³cientrelevant data while being tough, prudent and transparent in theperformance of the accounting services.d) Loyalty: An accountant is loyal when he or she keeps con²dentiality ofthe client or employer’s information. This due to con²dentiality is notbroken when the accountant performs his professionals’ activitieskeeping integrity, objectivity, and diligence. There are some caseswhen the accountants have to use their judgment to disclose theclient’s information; the accountant should take in account the interestof all parties, the type of communication involved, and the extent ofthe disclosure to the appropriate parties / recipients.e) Professional behavior:The Professional behavior requires for anaccountant to behave with integrity, objectivity, diligence, and propernotions of loyalty. To explain this in a graphic way, an accountant whoworks in attestation services with professional behavior will showindependence, honesty and loyalty. All these traits make theaccountant trustful and credible creating a close relationship with theclient.The independence is key within the professional behavior; whenan accountant can perform a perfect job but the closeness that he orshe develops during the job with the client or employer can sabotage
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