Managerial Accounting
Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter P, Problem 13E
To determine

Ethics: Ethics is the principle of conduct governing the activities of an individual. The ethical values of the individual guide the person in conducting activities. The person takes decision following own ethical standards. The way a person reacts in particular situation depends upon the own core principle of that person. The way of dealing with a particular situation considering personal values relates with the ethics of that person.

To Identify: The reporting of gambling winning to the Internal Revenue Service and whether the reporting would be ethical or not.

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The AICPA's Integrity and Objectivity Rule states: "In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresen facts or subordinate his or her judgment to others." - • You are an experienced CPA working in the Financial area of a Governmental Agency. In recent years, there have been a number of scandals at the Agency involving the CEO (i.e. President) and members of the Board of Directors. • The Agency has just appointed a staff attorney to the position of Chief Audit and Compliance Officer ("CACO"). This individual has never had an accounting or auditing course but has just enrolled in an evening program at a Chicago area University to obtain a "Certificate of Accounting." The CACO works directly for the Board of Directors. • The Agency, with the blessing of the Board of Directors, recently hired a public relations firm to help improve its image. • You are approached and…
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