Test your understanding 2 – Key concepts Fred is a certified accountant. He runs his own accountancy practice fro home, where he prepares personal taxation and small business account for about 75 clients. Fred believes that he provides a good service and his clients generally seem happy with the work Fred provides. At work, Fred tends to give priority to his business friends that he plays golf with. Charges made to these clients tend to be lower than others - although Fred tends to guess how much each client should be charged this is quicker than keeping detailed time-records. Fred is also careful not to ask too many questions about clients affairs when preparing personal and company taxation returns. His clients are grateful that Fred does not pry too far into their affairs, although the taxation authorities have found some irregularities in some tax returns submitted by Fred. Fortunately the client has always accepted responsibility for the errors and Fred has kindly provided his services fre of charge for the next year to assist the client with any financial penalties Required: Discuss whether the moral stance taken by Fred is appropriate.

Test your understanding 2 – Key concepts Fred is a certified accountant. He runs his own accountancy practice fro home, where he prepares personal taxation and small business account for about 75 clients. Fred believes that he provides a good service and his clients generally seem happy with the work Fred provides. At work, Fred tends to give priority to his business friends that he plays golf with. Charges made to these clients tend to be lower than others - although Fred tends to guess how much each client should be charged this is quicker than keeping detailed time-records. Fred is also careful not to ask too many questions about clients affairs when preparing personal and company taxation returns. His clients are grateful that Fred does not pry too far into their affairs, although the taxation authorities have found some irregularities in some tax returns submitted by Fred. Fortunately the client has always accepted responsibility for the errors and Fred has kindly provided his services fre of charge for the next year to assist the client with any financial penalties Required: Discuss whether the moral stance taken by Fred is appropriate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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