...order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision? A. Egoism B. Justice C. Virtue ethics D. Utilitarianism Which of the following situations would be considered ethical? A. The cashier at Wal-Mart gives you $5 more than you were supposed to receive and you don't do anything about it B. You accidentally back into a car at Wal-Mart and leave your information for them to call C. Receiving fake $20 bills and using them in a store while knowing they are fake D. Finding a phone in a restaurant and keeping it Each of the following characteristics describes the importance of integrity in decision making except for: A. Acting out of moral principle B. Being loyal to one's superior C. Having the courage to do the right thing D. Not subordinating professional judgment to others Each of the following describes the behavior of Cynthia Cooper in the WorldCom fraud except for: A. Persistence B. Competence C. Integrity D. Hesitance The ancient Greeks thought of the virtues as characteristics of behavior that: A. Could lead to a good life B. Make up the "six pillars of character" C. Support the rights theory D. All of these Each of the following elements make up an integral part of what is meant by "ethics" except for: A. Accepted standards of behavior B. Knowing the difference between right and wrong C. Always following the...
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...AICPA May 26, 2014 ETH/376 According to Ethical Obligations and Decision Making in Accounting, The America Institute of CPAs (AICPA) is an association made of up volunteer CPAs. Their main objective to ensure that CPAs continue to conduct their business in an ethical manner. The values described in the Code of Professional Conduct are based on common principles and virtues and designed to guide CPAs in a positive light and maintain professionalism with the public in the accounting world. The Principles described are: Responsibilities, Public’s Interest, Integrity, Objectivity, Independence, Due Care, Scope and Nature of Services (Mintz&Morris, 2011). I believe that the three most important principles are: Integrity, Public’s Interest, and Due Care. Integrity would be the most important to me. Dictionary.com states that integrity means, “Adherence to moral and ethical principles; soundness of moral character; honesty.”(Howe,2010). It is important that CPAs are honest with their work and with the public, and are able to say when they make mistakes as well. Accounting Ethics and Integrity Standards states that businesses, investors, and creditors need to be able to trust the financial records of a company; if there is false reporting then investors could be victims of fraud and could potentially lose large amounts of money. The same would go for creditors, they might never get their money back (Media&Petryni, 2014). Public Interest would be the second most important...
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...Reporting Practices and Ethics HCS/405 Victor Ho January 8, 2014 Reporting Practices and Ethics This paper will include a summary of the four elements of financial management, a summary of the generally accepted accounting principles, and a summary of the general financial ethical standards. The four elements of financial management are controlling, planning, directing and organizing, and decision making. The generally accepted accounting principles are generally known as GAAP, and are the basic accounting principles and guidelines. A few articles will be examined and examples that mirror ethical standards of conduct and financial reporting practices will be cited. The articles are Medicare Fraud: California Is Well-Represented on Federal List of Health Fraud Fugitives and Medicare Fraud Arrests. The Four Elements of Financial Management The four elements of financial management are controlling, planning, directing, organizing, and decision making. These four elements are the duties a financial manager must perform. Planning is where the objectives are recognized and the steps that must be taken for accomplishing these objectives are established. In the controlling element the financial manager must make sure each department in the organization is following the plans for accomplishing the set objectives. To ensure all plans are being followed, the financial manager will study the current reports and compare them with older reports. During the organizing...
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...Ethics in Accounting Student’s Name Institutional Affiliation In this case without reclassification of accounts receivable, net cash that is utilized in operation is given as; |Net Income |$60000 | |Decrease or (Increase) in accounts receivable |($80000) | |Net amount provided in operation |($20000) | If there is reclassification as anticipated, the net cash used in operation is; |Net Income |$60000 | |Net income provided in operation |$60000 | Through reclassification of $80000 of accounts receivables to long term, the cash inflow from operation will also increase by the same $80000 since it basically looks as if the company collected $80000. It is however understandable that there will be no net effect on the cash flows, this is so because the $80000 will be recorded as cash receivables outflow in long term. The rise in the accounts receivable will instead be reported as a rise in the long term receivables...
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...Legality and Ethicality of Financial Reporting 2-25-2013 Ethics 376 Phoenix University Unethical Practices are forbidden in every industry but at the same time they are also performed. Unethical practices occur when a business does “not conform to approved standards of social or professional behavior”. ("The free dictionary,") There are many situations that can lead to unethical practices and behaviors within the accounting profession. The Sarbanes Oxley Act of 2002 was put into effect to prevent a lot of these unethical practices. In every business owner’s life, there comes a time when a decision must be made, that if is made in favor of the company and/or for personal benefit will be considered unethical. The business owner is the person who sets the standard for his/her company. He/she is the person who sets up guidelines that demonstrate the contrast between ethical and unethical values and behavior, establishing the first step in creating a company culture emphasizing and reinforcing ethical standards. In the accounting industry, professionals not only have the standard practices of accounting but also, board accountancy rules, such as SOX and GAAP, when creating ethical standards. Federal and state laws play a big consideration during this time. Such a time came for CFO of Excello Telecommunications when he considered inappropriately posting a $2.1 million transaction to boost year-end earnings. At the end of 2010, Excello...
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...exceeded their goals although one region was below the target. The director, Frank Campbell, of the region with below target sales thought of an idea to meet the goals. The CPA, Tony Cupertino, was informed of the idea and the effects to the organization. Could the decision cause ethical or legal effects for the organization? Further review of the decision was needed to ensure SOX was followed and to determine if the decision would be equitable for stakeholders. Many people think accounting decisions are always clear based on laws and regulations; however, organizations need to be mindful of effects for everyone involved in the organization. In the United States there is no formal report for corporate governance; however, companies must disclose, and adapt corporate governance guidelines. The CEO of each organization must acknowledge the acceptance of the guidelines and comply with them (Mintz & Morris, 2011). After the Enron case New York CPA candidates must met ethics requirement criteria (Mintz & Morris, 2011). In this respect it is important for United Thermostatic Controls to separate ownership and control in the organization. The legality of the activities of United Thermostatic Controls are questionable based on local, state, and federal laws or regulations. The director of Southern sales wanted to modify information on upcoming sales to ensure his area met the sales goals. Campbell wanted to take over control or the situation while also maintaining ownership...
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...Floyd Ethical Issues in Business and Accounting Professor Gates February 12, 2013 In this paper, I am going to discuss the philosopher Aristotle. This paper will discuss how Aristotle perspective of distributive justice is applicable to ethics. Also, I will discuss Aristotle’s Nichomachean Ethics philosophy, why it is valuable and how it potentially connects to accounting and business. There have been many excellent philosophers and thinkers through past time. There are three main ones that I liked and truly had an accountant and business ethics philosophy. They are Plato, Socrates, and Aristotle. I decided to choose Aristotle as the greatest of them all on this subject. Aristotle was a student of Plato, and he possessed extraordinarily strong ethics. Aristotle born in northern Greece. He was a notable product of an educational program devised by Plato. He studied at an academy for twenty years. His view on individual human beings is they invariably linked together in a social context. Aristotle disagreed with Plato’s view but defended his own vision of ultimate reality. According to Britannica.com, he was an ancient Greek philosopher and scientist, one of the greatest intellectual figures of Western history. He had a wide and a vast range of intellectual pieces. He was the founder of formal logic and the most outstanding as a philosopher among many. This paper will discuss how Aristotle philosopher’s perspective of virtue ethics is applicable to ethical practices...
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...School of Accounting and Finance AFM 311: Connections to Ethical Context Spring 2015 Course Syllabus Course Instructors: Name: | Karen Wensley | Office Location: | HH383J | Telephone: | (shared office) | Email: | kwensley@uwaterloo.ca | Office Hours: | Monday 12:00 – 1:00 or 3:00 – 3:30, Thursday 9:30 – 10:00 or 2:00 – 3:00 or by appointment, email | Name: | Krista Fiolleau | Office Location: | HH 383K | Telephone: | X38166 | Email: | k2fiolle@uwaterloo.ca | Office Hours: | Wednesdays, 9 AM to 11 AM, by appointment, or email | Name: | Darren Charters | Office Location: | HH 3153 | Telephone: | 519-888-4567 extension 32570 | Email: | dcharters@uwaterloo.ca | Office Hours: | Wednesdays, 2:00pm – 4:00pm, by appointment, or email | Course Description: AFM 311 focuses on developing the qualities and transferable skills necessary for integration, continuous learning, and professional development. The course is oriented around the ethical and moral issues faced by accounting and finance professionals. Students are expected to have taken AFM 211 before taking AFM 311. As well, AFM 431 (a precursor course to this one) as well as PHIL 215/ARBUS 202 are anti-requisites to this course. If a student has taken one of those courses and hasn’t already spoken to Professor Charters (or someone else in the SAF) about this he/she should speak to the professor as soon as possible so an appropriate determination of how to proceed can occur. More can...
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...In today’s business world, corporate or small business ethical accounting practices are of the essence. It is good moral and ethical accounting practices that protect an organization from unethical federal and governmental practices to include lawsuits and liabilities from misreporting of an organizations portfolio. The American Institute of Certified Public Accountants (AICPA) enables an organization to follow appropriate guidelines and regulations that govern ethical accounting practices. Organizations conforming to the practices of the AICPA can ensure healthy accounting practices conducted in their organization. American Institute of Certified Public Accountants The AICPA is considered the foundation of ethical reasoning in accounting because According to Mintz and Morris (2011), the principles guide members in the performance of their professional responsibilities and call for an unyielding commitment to honor the public trust, even at the sacrifice of personal benefits. (Chapter Chapter 1, Ethical Reasoning: Implications for Accounting). The AICPA is founded on three underlining principles or fundamentals. They consist of public interest, integrity, and responsibilities. These principles as stated previously allow and guide professionals in delivering ethical practices for clients. It allows them to perform ethically sound actions even when no one is looking or observing. Public Interest Working in light of the public carries a sound profile. A trusted profile which...
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...O’Brian Software, Nick’s aunt and inexperienced in accounting. Nick O’Brian – Junior Internal Auditor, recently college graduate, nephew of the Lee Marchetti – Chief Financial Officer of O’Brian Software. After recently graduating college two months prior, Nick O’Brian is hired as a Junior Internal Auditor for his Aunt Amelia’s company, O’Brian Software. O’Brian Software has been in operations for five years and is a multi-million dollar publicly traded company that provides both software and consulting services to its clients. Although this is Nick’s first position at the company, he’s been involved since the very beginning of this family venture, since family members owned the majority of the stock. Realizing “her specialty is software, not accounting “, Aunt Amelia hires Lee Machete to be Chief Financial Officer (CFO) of O’Brian Software after the firm’s initial public offering (IPO) three years ago. Nick notices a significant amount of unearned revenue the balance sheet and wonders if O’Brian Software is being overly conservative in estimating the amount of deferred income. After having a difficult understanding the firm’s methodology for revenue recognition, Nick decides to talk to Marchetti. In the meeting with Marchetti, Nick states what worries him. “Overly conservative reporting could leave the impression we’re trying to create cookie jar reserves.” Machete assures Nick that based his judgment the firms accounting practices are sound, has proper documentation...
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...order to apply the transaction, he must first find a legal and ethical way off reporting the transaction on the financial report. The transaction in question, the product was sold on December 20, 2010 for $1.2 million; however, the receiver of the product is not able to take control of this product until January 11, 2011. Terry Reed needs to find a way to record the transaction before December 31, 2010 in order to meet their obligations. The accounting principle for reporting on the financial statements is the product must be posted in the quarter the product leaves the warehouse. (Mintz, S., Morris, R.E, 2011). In the accounting world, there are several different agencies, which regulate the reporting of financial statements. These rules and regulations protect the stakeholders and public from any wrong, fraudulent reporting and unethical behavior. The main agencies are (SOX), Sarbanes and Oxley Act of 2002, (GAAP), Generally Accepted Accounting Principles and the AICPA Code of Professional Conduct. In order for Terry Reed, and his accounting team to come up with a viable solution to their reporting dilemma, they must follow the rules and regulations of these agencies to make a sound decision which is legal and ethical for their clients. There is a great potential...
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...Daniel worked in the accounting department of Lynchberg Manufacturing. Daniels was recently asked to prepare a sales budget for the year 2011. He conducted a thorough analysis and came out with projected sales of 250,000 units of product. That represents a 25 percent increase over 2010. But after some time he found that he had made some mistake in his report. The report had indirect effect on the demand and sales of the product and also the hiring of the employees. He was in making a decision to tell his superior authority about the mistake. But his friend suggested not telling as it may risk his job. After listening to him his decision got bias. But in my opinion an employee should immediately report and error when it is discovered. All employees, especially employees who are burdened with the task of making projections which may impact the future of the company must act with integrity. Small-business investors and leaders consistently rely on the ethical collection and delivery of financial information. “According to Mintz, “Integrity is a fundamental trait of character that enables a CPA to withstand client and competitive pressures that might otherwise lead to the subordination of judgment.” The priority must be based on the professional responsibilities first rather than looking at the personal interest first. What if the mistake is caught and then there will be no job rather than except the mistake and tell the superior authority there might be chance that the superior...
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...customer/ public that must be taken care of first and not our personal interests. To protect the client we must first understand the responsibilities as a CPA. “The overriding responsibility of CPAs is to exercise sensitive and moral judgments in all activities. “ In meeting our obligations it is important to realize that our morals and ethics should be a huge factor in the way we conduct business and treat our clients (Mintz & Morris, 2011, Chapter Chapter 1). Integrity “recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality; (2) not subordinating the public trust to personal gain and advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and of due care.” As professionals we must have the clients trust to fully do our jobs. If the client doesn’t trust you as a professional then how can they trust your work product. Even the perception of wrongdoing can lose all trust. CPAs must be able to not only always follow the rules, but also the appearance of always doing the correct thing (Mintz & Morris, 2011, Chapter Chapter 1). “The due care standard (diligence) calls for continued improvement in the level of competency and quality of services by (1) performing professional services to the best of one’s abilities; (2) carrying out professional responsibilities with concern for the best interests of those for whom the service...
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...Week 3: Individual Legality and Ethicality of Corporate Governance Alisha J. Simental March 6, 2014 Katherine Parks Introduction In Case 3-3, we are introduced to the United Thermostatic Controls," that engages in the manufacturing and marketing of residential and commercial thermostats."(S. Mintz, R. Morris, 2011) They use their thermostats control temps in refrigerators and furnaces, mainly selling to retailers. According to the text, economic conditions and the reduction of demand has created internal problems and tension to still achieve target revenues. In addition, the sales department is feeling the pressure to increase or expand earnings. The internal auditor found two cases that did not follow correct procedures, because the accounting department recorded revenue for these earlier in order to meet the target revenue, due to pressure from Campbell the director of sales division. In this paper I am going to discusses the legal activities, criteria of SOX act, ethical activities, and decide on the best nest step decision. Legal Activities The two shipments made up about 150,000 in revenue and were the main concern for the internal auditor. In the first shipment United ship the product on the 31st of December even though the company, Allen did not want it delivered before the 1st of February due to not needing it until the 1st of March. In the second shipment, the company shipped a partial shipment to Bilco Corporation on the 30th of December even...
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...keep up the ethical obligations of CPAs. The AICPA Code of Conduct is known as the the foundation of ethical reasoning in accounting because it lays out the “law” accountants should follow in order to keep a good moral and ethics in the accounting profession. There are many purposes for the AICPA Code of Conduct but I feel that there are three that are more important than others. One purpose that I feel to be important is to keep the integrity of the accounting profession. As accountant clients hold us to very high standards. We are suppose to be honest, loyal and trust worthy. I feel that without the AICPA Code of Conduct laying out any type of foundation of integrity then CPAs would be viewed in so many negative ways. I don’t think I can stress enough how much ethics play into many professions not just accounting and how important that the AICPA Code of Conduct is based on ethical reasoning. Another purpose that I feel to be important is to look out for the client’s best interest. By looking out for what is best for the clients then as accountants it keeps jobs open and growing because no matter what kind of business you are you need someone to do accounting but if you don’t have a company of accountants or a personal accountant looking for your best interest as an owner than you don’t have anything. When you don’t have a professional doing your accounting that’s were mistakes are made and money can be lost. Lastly one important purpose of the AICPA Code of Conduct is to make...
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