Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 4, Problem 4.1EC
To determine

To identify: The ethical principles from the Code of Professional Conduct violated in the given four situations

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For each of the situations listed, identify which of three principles (integrity, objectivity and independence, or due care) from the AICPA Code of Professional Conduct is violated. Assume allpersons listed in the situations are members of the AICPA. (Note: Refer to the AICPA Code ofProfessional Conduct contained on pages 25–27 in Chapter 1 for descriptions of the principles.)a. Reggie, the managing partner of an audit firm, has the authority to approve all transactions. As a result, he uses firm funds to purchase a new couch for his home.b. Taylor is a first-year auditor for a large public accounting firm. She is assigned to auditBike Global, a regional travel agency specializing in bike tours. Taylor does not discloseto her firm that her mother is a co-owner of Bike Global, since Taylor knows that shewill not allow herself to be influenced by her mom.c. Rick has been working for his company for ten years and is required to attend internal control training annually. Rick does not…
Each of the following situations involves possible violations ofthe AICPA Code of Professional Conduct. For each situation, state whether it is a violationof the Code. In those cases in which it is a violation, explain the nature of the violationand the rationale for the existing rule.a. The audit firm of Miller and Yancy, CPAs, has joined an association of other CPAfirms across the country to enhance the types of professional services the firm canprovide. Miller and Yancy share resources with other firms in the association,including audit methodologies, audit manuals, and common IT systems for billingand time reporting. One of the partners in Miller and Yancy has a direct financialinterest in the audit client of another firm in the association.b. Bruce Sullivan, CPA, is the audit partner on the engagement of Xylium Corporation,which is a public company. In structuring the agreement with the audit committeefor the audit of Xylium’s financial statements, Sullivan included a clause that…
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…

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Financial Accounting (12th Edition) (What's New in Accounting)

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