...academic standards while attending the university. In compliance with this policy, it would be unethical for a student to use a solutions manual to help solve any problem or case assigned. Using a solutions manual would fall under the definition of cheating that is clearly outlined in the Delta State Graduate Catalog. In an example listed it states the use of notes or any other aid not specifically allowed or approved by the instructor as cheating (DSU Graduate Catalog, p. 26). Within the scope of the definition, the use of the manual would only be permitted if the student receives permission from the instructor (DSU Graduate Catalog, P. 26). In this case, since the instructor did not allow for the use of the manual, the student is in violation. If the student is suspected of using the solutions manual, the instructor can schedule an appointment with the student for the appropriate action to be taken. Penalties can range from the failing of a final exam to dismal from the university (DSU Graduate Catalog, p. 28). Students are allowed to appeal the recommend punishment stated in the university’s undergraduate and graduate bulletins (DSU Graduate Catalog, p.28). The IMA Statement of Ethical Professional Practice is very clear on the importance of ethical behavior it expects. IMA has overarching principals that include: honesty, fairness, objectivity, and responsibly. The IMA believes that all members should adhere to these principles. Under current IMA ethical guidelines...
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...issuing body for the CPA, and the IMA is the certification issuing body for the CMA. The AICPA stands for the “American Institute of CPA’s”, while IMA stands for the “Institute of Management Accountants”. The AICPA has six major roles in which it contributes to the well-being of accountants (Melancon, 2002). The first role is to obtain a larger involvement from the user’s of financial statements in establishing auditing standards. A second role of the AICPA is to serve as a liaison between market institutions and corporations. Also the AICPA promotes research for investors into topics that can help these individuals protect themselves against fraud. One group that does this is the Association of Certified Fraud Examiners. A fourth role is the continuous change in education rules for CPA’s. Currently, the AICPA is trying to require more credits on fraud detection. They also try and help develop educational and training materials in include in college courses. A fifth role of the AICPA is to work with other standard-setters in increasing the transparency of financial and business reporting. This is very beneficial to the community because it allows investors to be more informed before they invest in a company. It allows for safer investments. The last role of the AICPA is to promote strong corporate governance and internal controls. The IMA is also highly involved in protecting the well-being of management accounting and financing. The mission of IMA is to provide a council for research...
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...In the article “Don’t Leave Your Hand in the Cookie Jar,” the author states that John Davies and Karl Schumaker have totally opposite opinions about how to make the year-end adjusting entries for 2009. John is an assistant controller. He has a master’s degree in accounting, is a CPA, and has three years of solid experience with a major accounting firm. Karl, John’s immediate boss, a controller, is 20 years older than John, and he has a B.S. in management and a general M.B.A. from a top graduate school. Moreover, he has over 25 years of corporate accounting and finance experience even though he has no public accounting experience. The adjusting entries in question consist of accounts receivable bad debt, product returns, and product warranties. The accounts receivable bad debt is the first accounting adjustment they have different opinion. Karl would to prefer to bring the bad debt up to 3% of sale this year from 2.75% last year because he thinks an economic slowdown is coming. Besides, Karl believes in conservative accounting, so he thinks that the accountants should use the least favorable amount. However, John thinks the bad debt should be keep as same as 2.5%. John said that he does not see the need to bump up the bad debt percentages, and he mentioned they can adjust it in future as needed. The second adjusting entry they hold the opinion differ from each other is product returns. Karl wants to keep the 1% on product returns, but John thinks the product returns should...
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...The Institute of Management Accountants (IMA) and the American Institute of Certified Public Accountants (AIPCA) stress the need for their members to follow a code of ethics. The AICPA code is the primary source of guidance for those that practice public accounting while the IMA is concerned with a broader role for accounts and financial professionals that work inside the companies. There are likenesses and there are variances between the two but the main objective is to set professional standards for all types of accounting. The IMA and AICPA codes have a few similarities. Both discuss the importance of overall honesty, fairness, objectivity and responsibility that practitioners should act in accordance with as well as encourage others to do. Both express the significance of being competent, having integrity and maintain confidentiality. The IMA and AICPA emphasize the importance of continuing education and being able to perform required duties while maintaining the credibility of the organization they work for. They equally explain that behaving ethically in your professional practice requires commitment and that having the trust of your customers is top priority. The concentration on the accountant’s behavior is an overall similarity. There are also differences among them. One of the most obvious is the organizational structure. The IMA Code is significantly shorter and less “wordy”. In my opinion the IMA Code is easier to understand and describes the responsibilities...
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...Jeff Favoroso Acct. 4501 – day class October 7, 2013 Codes of Conduct The American Institute of Certified Public Accountants (AICPA), Statements on Standards for Tax Services (SSTS), and Institute of Management Accountants (IMA) all provide professional codes of conduct that set standards for accountants and other financial professionals. All three present their standards regarding how the professionals in each organization must conduct their business. These standards include the basic guidelines of the intended business, and the ethical values that each organization holds. Aside from complying with the organization’s standards, each of these three organizations require their members the continuance of enhancing their knowledge and practice in their area of accounting expertise. Most importantly, their main objective is to increase the public’s confidence in their professional responsibilities. The accuracy and credibility of the accountant’s work is essential for growing the public’s trust in the organization and its professionals. The AICPA holds their professionals to a high standard for major reasons. The AICPA’s code of conduct applies to its CPA members. Outside investors rely on information of public companies that is reported by a CPA. The AICPA focuses on the CPA’s commitment to their clients. Independence and confidentiality are important factors for meeting guidelines. A CPA must uphold their integrity in the work they perform for their clients. The AICPA...
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...statues. It uses a standard costing system for its products. Managers and production personnel are paid bonuses based on attainment of material, labor, and overhead standards. The standards are recommended by a committee that is composed of engineers, production staff, and accountants. The accounting manager, however, has the final say on what the standards will be for each upcoming year. Four years ago, the senior management at Blue Rabbit adopted a “zero- defects” strategy throughout the organization. As part of the zero- defects strategy, the company has been using ideal standards. Senior management has pointed out that it does not want to build waste into the standards by using practical standards. The adoption of ideal standards has been somewhat problematic at Blue Rabbit and there has been a lot of resistance from employees to the ideal standards. Mike Anderson is the accounting manager at Blue Rabbit and is currently evaluating the material, labor, and overhead standards for the upcoming year. The standards committee has already met and made its recommendations. The standards are, as dictated by senior management, extremely tight and allow for zero waste, breakdowns, or downtime. The plant manager, Dana Sullivan, comes to Mike and asks him to loosen the standards for the upcoming year. The plant manager is upset that the standards are set at a 100% efficiency rate (zero defects). Dana points out that everyone’s bonus is on the line if the standards are not met. Some...
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...information needed to set the company’s long term objectives and goals for cost control, revenue strengths and weaknesses, and profit data statistics within in local departments, regional and often territorial plants. At times, Mrs. Jones found herself working with certain data regarding customer groups and how they would be affecting that business segment in the future. This differed from financial accounting in that the latter would handle the matter from a historical account of the numbers taking past records and data to make future goals relevant and this type of accounting is necessary for certain external report to comply with the generally accepted accounting principles, GAAP, guidelines and the international financial reporting standards, IFRS; whereas, the managerial accounting professionals do not need to follow GAAP or IFRS(J. W. Jones, personal...
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...Read full version essay Financial And Business Accounting Financial And Business Accounting Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.comand get instant access to Financial And Business Accounting and over 30,000 other Papers and Essays Category: Business Autor: anton 01 December 2010 Words: 1039 | Pages: 5 Financial accounting is defined as measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. The purpose of financial accounting it to aid accounts in their function of overseeing an organizations financial assets. The central outputs of financial accounting are audited financial statements such as balance sheets and income statements. Financial accounting is geared toward providing information to parties outside the firm, for example prospective shareholders. By contrast, managerial account which measures and reports financial and non-financial information tat helps managers make decisions to abide by the goals of an organization. It focuses on internal reporting. The tools used by managerial accountants to meet their goal of decision support are such things as budgets, activity-based costing and financial planning. Managerial account is designed for internal use by firm’s managers. Cost accounting is a subset of the more inclusive area of managerial...
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...company to end sales of the old, un-emulsified product and make the new, emulsified version to fulfill the contracts. Although making the new product would not meet the target return for their investment this is a step that I believe needs to be taken in order to keep up the company’s ethical standards. It seems wrong to be shipping the product in international markets to countries like Guatemala, taking advantage of the lack of information they have on the situation. The company should instead be educating others on what they know and using what resources they have to be promoting the newer, safer product. In my opinion, the IMA ethical code does address the type of ethical issues raised. The code states that each practitioner has the responsibility to “Abstain from engaging in or supporting any activity that might discredit the profession.” If word gets out in the international markets that Bio Hemi had knowledge of the CDC reports that claimed 74 percent of hemophiliacs who used an un-emulsified plasma product were HIV positive, this could shine a very negative light on not only the Bio Hemi company but also to the rest of the companies who work to provide safe and healthy plasma products. The IMA code also claims that each practitioner is held responsible for communicating information fairly and objectively, and to disclose deficiencies in information or internal controls. I would consider failing to inform countries like Guatemala that Bio Hemi’s product may be linked to the...
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...study of moral values and judgements which are applied to the accountancy. “Accounting ethics can be defined as a set of distinct guidelines for a business to maintain clean balance sheets, accounting for their profits, losses and expenses incurred and prevent it from mishandling financial reports and statements” (Buzzle 2011). The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, investors, managers, and other users of the financial reports rely heavily on the financial statements of a company in order to make some big decisions and investments. And in the current business world, due to more and more business frauds and corporate collapses came out, attention has been drawn to ethical standards accepted within the accounting profession. In China, I often heard about that many companies act in some immoral ways, for example, preparing three books, overstating/understating their assets or net income, overstating the cost of inventory, and so on. The companies which misstate or hide some financial information may bring some substantial benefits to them in a temporary short time. This is the most obvious reason for the accounting frauds. As far as I know, preparing three books is the most common problem in many small companies. When they want to get a loan from the bank in order to make new investments or enlarge the productivity, they may try to overstate their net income to show that their profitability is good. Small...
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...What’s Wevenue? Case Study Coopers & Lybrand was auditing Cal Micro at the time the latter company wrote off half of its accounts receivable. The move sparked an internal investigation and the Securities and Exchange Commission (SEC) sought to bar the two auditors working with Cal Micro from signing off on public company audits. On one hand, the SEC pointed to several weaknesses in the auditors’ performance of their jobs, while on the other the auditors claimed ignorance and even alleged a willful cover-up on the part of Cal Micro (MacDonald, 2000). At issue in the dispute was Cal Micro’s failure to establish a guideline for when a transaction could be treated as a sale. The chief accountant of Cal Micro at the time testified that the auditors were asked, and actually approved Cal Micro’s practice of booking revenue on products sold but shipped after the close of the fourth quarter in June 1990 (MacDonald, 2000). Managers also booked revenue “for products shipped before customers even wanted them; they often didn’t reverse sales when customers returned goods; and they paid distributors ‘handling fees’ to accept products that sometimes had unlimited rights of return, then booked the products as sales” (MacDonald, 2000). Ultimately, this resulted in 70% of quarterly revenue in Spring 1994 being fake, and led to Cal Micro’s decision to write-off half of the accounts receivable (MacDonald, 2000). Coopers & Lybrand was performing an annual audit at the time, and deployed...
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...activities to improve society.” With the rapid usage of unethical business practices, such as spreading negativity about another company via social media, it is easy for a company to get a bad reputation in the consumer’s eyes. However, by promoting CSR, companies will be seen as the “good guys” and potentially gain the trust of the consumers. That trust can carry a company in the long run. Other benefits include maintaining an excellent workforce, differentiating the company from its competitors, and providing access to investment and funding opportunities. Part B: Ethics According to Investopedia, a stakeholder is, “a party that has an interest in an enterprise or project” (Investopedia, n.d.). The stakeholder in the case study on ethical behavior is Ray Pon. Ray is considered to be a stakeholder because he has self-interests in regards to his job. He is asking his friend, Marcus Lim, to help him adjust the figures in order to save his job. Ray is risking his friend’s job in order to keep his job. By doing this, he is behaving on his self-interest without thinking of the consequences if someone were to find out about the changed figures. Another stakeholder in this situation is Marcus. Marcus works as a cost accountant for...
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...for taking the CMA exam, as well as to maintain your CMA certificate but they are only mediocre compared to the benefits the Certified Management Accountant Certificate can do for you. The CMA exam is administered, developed and graded by the Board of Regents of the Institute of Certified Management Accountants. (Institute of Certified Managment Accountants, 2009, p. 2) The Board of Regents also has the responsibility to evaluate and validate the CMA applications to make sure they have meant all the requirements to be a CMA. (Institute of Certified Managment Accountants, 2009, p. 2) To be eligible to take the CMA exam you much first become a member of the IMA and pay an entrance fee, $200 for regular members but only $75.00 for any students. (Institute of Certified Managment Accountants, 2009, p. 3) Once a member of IMA the Board of Regents will make sure that you have a Bachelors Degree from an accredited university, if the degree is not from an accredited university it could be accepted but only after being evaluated by an independent agency. (Institute of Certified Managment Accountants, 2009, p. 3) Candidates for the CMA certification must complete two continuous years of work in a management accounting field or financial management field prior to the exam or within seven years of passing the...
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...number of stakeholders should be selected. None of the stakeholders benefit from an action that misstates net income. From a virtue perspective, honesty requires that the statements should be truthful and recognize revenue using generally accepted accounting principles. Objectivity requires that the company should approach its decision about the proper asset classification with fair-mindedness and without partially to one set of stakeholders. Trustworthiness means that the accountants should not violate the investors’ faith that the statements are accurate and reliable. Integrity requires that Rikey should have the moral courage (which he did) to withstand Baitz’s pressure, and not to subordinate judgment. Under the AICPA Code, the ethical issues are summarized in the principles of the Code, Articles I (Responsibilities), II (The...
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...weaknesses for the five areas mentioned by the Finance Committee. Discuss any weakness and explain how to improve each situation. * Inadequate system to track the revenue generation and grant * There is no system to track the revenue generation * Inadequate system to monitor the expenses * All the expenses should go through an approval process which requires all the expenses should be properly documented and the need explained. This is not in place in Choice House 2. Identify ethical issues that Ashley should discuss with the Finance Committee? Which IMA Ethical Standards would apply to Ashley? Discuss. * Credibility: The ED should record all expenses and provide all information when I asked. He cannot deny any information. Providing accurate and insightful information are the key function to ED role. 3. How should Ashley respond to the Finance Committee? Review the IMA Resolution of Ethical Conflict section of the IMA Statement of Ethical Professional Practice for guidance. Prepare a memo to Joan sharing Ashley’s findings. Should Ashley send a copy of the memo to the ED? Explain. * Ashley should discuss the case with her immediate supervisor and also take the issue to upper level to the executive director. * Ashley’s Memo to Joan: Date: 6/3/2013 From: Ashley Parsons Subject: Findings on Choice House expense issue and lack of revenue for the year To: Joan Tanner CC: Beth * Most expenses were due to publicity brochures...
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