...ETH/376 Accounting Ethics and Professional Regulations Week One Assignment – AICPA Code of Professional Conduct AICPA Code of Professional Conduct The AICPA Code of Professional Conduct represents the principles that “are based on the values of the profession and the traits of character that enable CPA’s to meet their obligations to the public” (Mintz & Morris, 2011). The AICPA Code of Professional Conduct has six essential principles to guide them in the performance of their profession. The six essential principles are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. All these principles need to be follow by the members of the AICPA. These principles link the professional conduct to moral judgment and recognize the responsibility that CPA’s have to his or her clients as well as the public. AICPA Code of Professional Conduct Principles The AICPA Code of Professional Conduct have six essential principles. The first principle is call “Responsibilities”, which protects the public of irresponsible and immoral behavior. The second principle is “The Public Interest”, which protects the best interest of stakeholders that includes the clients, credit grantors, government, investors, etc. The third principle is “Integrity” because this principle identify the public trust and CPA’s need to be candid and honest while maintaining client confidentiality. The fourth principle is “Objectivity and...
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...the starving children. When Peter Singer wrote his article in 1971“Famine, Affluence and Morality” he was able to give a disastrous review of what readers may ordinarily think about different things such as charity and famine relief and if it is moral. Why is there so much famine around the world? Some put blame on lack of food and shelter with no medical care. Others believe that if there was a population control put in place that this perhaps would solve the issue of famine, with as long as these severely poor countries are still giving birth to children, famine becomes a vicious circle. Is it really the obligations of those who live in wealthier countries to support those in other countries? Should these countries make sure their own people are taken care of first? This is the argument that Mr. Singer presents in his paper. One has the moral obligation is to help others in need whether it be a cup of coffee or assisting in drilling a well for water and no matter if they are next door or across the world. With three different premises and a conclusion Singer argues for relief. The first of the three premises is understood when Singer said “that suffering and death from lack of food, shelter and medical care are bad” (Singer, 1972, pg. 231). The next of these three premises argument in his article is “if it is in our power to prevent something very bad from happening, without thereby sacrificing anything morally significant, we ought, morally, to do it” (Singer...
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...able to choose products and services at competitive prices, with a satisfactory quality assurance. * Right to quality of goods and services: Goods and services must comply with quality requirements set by the law for each of them, fulfilling the purpose for which they are intended. * Right to training and education for consumption: The state should promote training activities, primarily integrated into school curricular and programs, creating consumer attitudes critical and selective. * Right to information for consumption: The supplier of goods and service are required to provide true and complete information to the consumer. In the case of goods and essential services, companies that operate on an exclusive basis has the obligation to inform in advance the consumer cuts or interruptions of supply, unless unforeseen cases. * Right to protection of economic interests: In hiring, there must be equality of parties, loyalty, good faith and full length of contracts. * Right to prevention and repair of damage: The producer, the supplier of goods and the service provider are responsible for the damages that the goods and services put on the market cause the consumer who is entitled to compensation for damages caused by false information,...
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...The appropriate recognition/measurement of asset retirement obligations in regard to the following situations: 1. The ten warehouses that will likely be sold before being required to remove the asbestos. 2. The two warehouses in states without special asbestos handling and disposal laws. 3. The thirteen warehouses for which the settlement date is indeterminate. Literature Statement 143 Paragraph 35 of FASB Concepts Statement NO. 6, Elements of Financial Statements, Characteristics of a liability 1. It embodies a duty or responsibility 2. There is little or no discretion to avoid a future transfer or use of assets to satisfy the obligation, and 3. The obligating event has already occurred. In June 2001 the FASB issued a Statement No. 143, Accounting for Asset Retirement Obligations requiring entities to record liabilities for tangible, long-lived assets that must be retired or disposed of in a specified way by law or contract. Such liabilities are known as Asset Retirement Obligations (AROs) ASC 410-20-25-13 If a current law, regulation, or contract requires an entity to perform an asset retirement activity when an asset is dismantled or demolished, there is an unambiguous requirement to perform the retirement activity even if that activity can be indefinitely deferred. At some time deferral will no longer be possible, because no tangible asset will last forever (except land). Therefore, the obligation to perform the asset retirement activity is unconditional even...
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...Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics? Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. They see no need to be ethical in any further sense, and therefore no need for any background beyond business and law. A third group of managers grant that ethical duty goes further than what is required by law. But they still insist that there is no point in studying ethics. Character is formed in childhood, not while reading a college text or sitting in class. These arguments are confused and mistaken on several levels. To see why, it is best to start with the question raised by the first one: why should business people be ethical? Why Should One Be Ethical? There is already something odd about this question. It is like asking, “Why are bachelors unmarried?” They are unmarried by definition. If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should...
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...Vigilance Essay Feb 2015 1028 words The price of freedom is eternal vigilance. (Quote- Desmond Tutu) Vigilance is defined as the action or state of being alert and watchful. It is concerned both with what is and what will be. Thus it is important to be Vigilant in the army for many reasons. Not the least of which being it could keep you and your buddies alive despite the world’s best attempts to make you otherwise. But it means more than just staying awake and alert at guard duty. It means both being mentally and physically prepared to react to changing conditions and to being aware and cognizant of the current conditions. There are three important categories to discuss here and expound upon. The First is Vigilance on Duty, the second is Vigilance to Duty and the third is Vigilance in your Duties. They that are on their guard and appear ready to receive their adversaries are in much less danger of being attacked than the supine, secure and negligent. (Quote by - Benjamin Franklin) As it was stated before Vigilance on Duty can mean life or death in the military. If you are on Guard and fall asleep the Enemy could sneak in and kill you and your battle buddies without even a challenge. Vigilance on Radio duty means that you don’t miss important information coming it from far off units or battle buddies calling for rescue or backup and support. In the aid station vigilance may mean the ability to save lives by reacting quickly in the first few seconds of a critically wounded...
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...accruing from the income relating to the sale of Philam Plans and Philhealthcare. Then this is a problem between Philam Life and BIR? Apparently not. Monico Jacob, the chairman of Philam Plans First Inc., the Tanco Group-owned insurer which purchased Philam Plans and Philhealthcare, claims that Philam Life’s alleged non-payment of taxes means that the Tanco group cannot obtain the tax clearances necessary for the sale of the two firms. Philam Life’s anodyne response is to say that it “has a long track record of fully honoring all obligations to each and every one of our stakeholders and we are committed to honoring our commitments to BIR.” Yes, but this does not help the Tanco Group with whom we empathize. Jacob says “Philam Life reneged on its commitment to the Tanco Group in failing to deliver the tax clearances. The Tanco Group has suffered damages due to the delay. Philam Life, however, is trying to find a way out of its obligation. Corporate integrity is an issue here.” Heavy stuff. We wonder if the BIR is being fair to the Tanco Group. It seems that Tanco is suffering from a problem that is exclusively between Philam Life and BIR. Is it not possible for BIR to let Tanco off the hook? When Alan Howard bought Monet’s Water Lilies artwork for US $43 million from Imelda Marcos’s former assistant Ms Bautista, the fact that Bautista did not pay the appropriate taxes to the State and City of New York did not affect Howard’s ownership of the painting. Surely there...
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...presentation of the answers. Answer to question 1 1 Definition of liability: A present obligation arising from a past event, the settlement of which is expected to result in an outflow of resources embodying benefits (i.e. usually a cash payment) There are two types of event creating obligation a) Legal – arises from the conclusion of legal contract, legislation or other operation of law. Example: repair warranty in sales agreement Constructive – derives from the actions of the enterprise where: Past actions – by an established pattern of past practice, published policies or a sufficiently specific current statement, the enterprise has indicated to other parties that it will accept certain responsibilities; and Created valid expectations – as a result, the enterprise has created valid expectations on the part of those parties that it will discharge those responsibilities For example: manufacturer has repaired any faulty items free of charge though there is no warranty in the sales agreement 3. Provision is a liability of uncertain timing or amount. It is accrued on the statement of financial position as it is probable it will be settled and a reliable estimate can be made of the amount that will be settled. Application of the recognition and measurement rules Future operating losses Do not meet the definition of liability and no provision should be made. Onerous contracts Where certain rights and obligations make a contract onerous, a provision should be recognized for any unavoidable...
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...Duties of promoter The promoters take possession of important position and responsibility towards the incorporation of a company. Promoters stand in fiduciary relationship with the company they are promoting. The fiduciary obligations of a promoter will arise automatically once he or she becomes the promoter of the company. There are some major duties of the promoter imposed by the court. First of all is acting bona fine. ‘Bona fide’ is originally a Latin word which means doing and presenting in the absence of fraud. (Oxford Dictionaries) In the other words, a promoter is required to act honestly at all time in the perspective of best interest of the company instead of his own personal interests. In the case given above, Chin did not disclose to Ruth and Ali that his wife is the landowner and he resold the land to the company at a price higher than the original price. In short, Chin did not acting in good faith to exercise his duty. Moreover, a promoter is not permitted to make any secret profits without the consent of the company out of the promotion of the company, unless he has sufficiently disclosed the profits made in the transaction. The most common way a promoter uses to make secret profits by purchasing a property himself and reselling to the company at a higher price. In the case given, Chin purchased a land at the price of RM1 million, but he resold to Mega Sdn. Bhd. at an enhanced price which is RM5 million. Chin has breached his duty as a promoter by obtaining...
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...objectivity and impartiality. The fifth principle deals with the level of quality service and competence that the public receives and deserves. The sixth principles ensures that CPA’s have good internal control put into place, and to make sure that CPA’s are unbiased and free of conflict when performing an audit for a client. These principles are put into place to protect the public and I would say also to protect the CPA’s, because as they follow them they will ensure that their practice is honest, responsible, and ethical, leaving no room for unethical behavior. AICPA Code of Professional Conduct Purposes The most important purposes of the AICPA Code of Professional Conduct are: honor the public’s trust, to enforce the ethical obligations of the CPA’s, and to provide guidance in the performance of...
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...金是否初始認列為權益或負債， 該事件是否應視為衡量期間的 調整； (4)無相關揭露要求。 (4)增列相關揭露規範。 相關，續後調整應調整權益外， 或有價金的續後調整應調整商 譽金額； 收購成本及商譽； 或有價金 收購成本 股份基礎給付獎酬計 畫 因企業合併收購公司以股份基礎 給付獎酬計畫取代被收購公司原 有之股份基礎給付獎酬計畫，相 無特別規定。 項目 IFRS 3 （修訂版） 關獎酬費用是否屬收購成本， IFRS 3（修訂版）提供相關指引。 現行 IFRS 3 企業合併所發生之成 本 收購成本 推動企業合併案之相關成本，通 常於發生當期即費用化。 推動企業合併案之相關成本，通 常包含於收購成本內，影響商譽 金額的計算。 無特別規定。 取得之可辨認資產與承擔之負債之認列與衡量 備 抵 評 價 (valuation 於收購日以公平價值衡量資產， allowances) 或 準 備 雖未來現金流量具不確定性，仍 (provisions)的禁止 禁止使用獨立的備抵評價科目(例 如備抵呆帳)。 收 購 公 司 意 圖 將 處 分 收購公司應以公平價值衡量該資 所 取 得 資 產 ， 或 其 用 產。 途不同於其他市場參 與者 初始認列或衡量之例外情況 待出售資產 應依《IFRS 5 Non-current Assets Held for Sale and Discontinued Operations》之衡量規定處理。 凡是符合 IFRSs 架構(Framework) 下對負債的定義，當現有的義務 (present obligation)係來自過去所發 生的事件(past event)，且該負債公 平價值能可靠衡量者，應認列該 負債。 無特別規定。 應依淨公平價值衡量此類資產。 或有負債 可能發生的負債(possible obligations)，若負債公平價值能可 靠衡量者，應認列該負債。 員工福利 所得稅 補償性資產 (Indemnification assets) 再取得權利 股份基礎給付獎酬 應依 《IAS 19 Employee Benefits》 之 於 IFRS 3 Appendix B 提供有限的 認列與衡量規定處理。 指引。 應依 《IAS 12 Income Taxes》 之認列 於 IFRS 3 Appendix B 提供有限的 與衡量規定處理。 指引。 補償性資產之認列與衡量應依相 無特別規定。 關補償性項目所適用之準則處理。 應依相關合約剩餘期間衡量。 無特別規定。 應依 《IFRS 2 Share-based Payment》 無特別規定。 衡量。 購買法 (Acquisition method) 衡 量 合 併 所 取 得...
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...Public companies have additional reporting and procedural obligations since the passage of the Sarbanes-Oxley Act, many of which may be costly for a company to implement, such as the Section 404 requirements relating to internal controls over financial reporting. (http://www.inc.com/guides/preparing-for-initial-public-offering.html) The things LJB should continue to practice are: The use of pre-numbered checks and pre-numbered invoices makes it easier to spot a missing document. (Documentation procedures) Locking up unused checks will make it more difficult for someone to gain assess and forge a check.(Physical Controls) Having the President and and another manager interview and approve new hires is a good idea because it will increase the chances for one of them to catch any “red flags” with potential employees (HR Controls). The monthly bank reconciliation and long term employees are both practices that should be continued.(Independent Internal Verification) The things LJB should no longer practice: Having one accountant who plays the role of both Treasurer and Controller is an area of great risk. The Controller and Treasurer should hold each other accountable for all transactions. A person should be hired to as the treasurer and/or controller. Having one person responsible for both roles makes easier to commit fraud. (Segregation of duties) Every employee should NOT have access to the petty cash. The cash should be locked and those with a key should ensure proper...
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...|NCO EVALUATION REPORT |SEE PRIVACY ACT STATEMENT | |For Use of this form, see AR 623-205; the proponent agency is ODCSPER |IN AR 623-205, APPENDIX C | | | | | | |PART I - ADMINISTRATIVE DATA | | | | | | |a. NAME (Last, First, Middle Initial) |b. SSN |c. RANK |d. DATE OF RANK |e. PMOSC | | | | | | | | | | | | | | |f. UNIT, ORG., STATION, ZIP CODE OR APO, MAJOR COMMAND |g. REASON FOR SUBMISSION ...
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...the SRPC. The RESP Dealers Association of Canada is incorporating these changes into an updated version of the course. Key regulatory changes effective July 11, 2011: 1) National Instrument 31-103: This instrument’s name has been changed to Registration Requirements, Exemptions and Ongoing Registrant Obligations. It is referred to at several places in the SRPC text. 2) Change in Registrant Information: Before July 11, 2011, changes in a registrant’s personal information had to be filed with the regulators within seven days. Now, changes must be filed within ten days. The requirement appears in National Instrument 33-109. Similarly, whenever a registrant was terminated, the time for filing notices of termination has also been extended to ten days from 7. These filing requirements are discussed in Chapter 13 of the SRPC. 3) Know Your Client: Section 13.2 of NI 31-103 requires all registrants to determine if their clients are insiders of any publicly traded companies. In November 2010, the regulators ordered that this obligation did not apply to salespersons of Scholarship Plan Dealers. That exemption continues to apply, but now appears in section 13.2(7) of NI 31-103. KYC obligations are discussed in Chapter 9 of the SRPC. 4) Referral Arrangements: Changes to Section 13.8 of NI 31-103 now make it clear that before a registrant can participate in a referral arrangement with someone outside the dealer, there must be a written agreement in place between the...
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...Hospital and took an oath to run the daily operations of the hospital, implement procedures and decisions made by the board of directors, and give updates and reports to the board members and shareholders about the financial status and daily operations of the organization. First of all, Dr. Do Right must communicate procedures, policies, and business goals to his management team. He must educate them on business changes, developmental opportunities, and all other vital information to help them to administer and communicate the organizations’ policies, expectations, and needs to lower level employees. Dr. Do Right must also display leadership qualities that are positive, respectful, and effective. This is his obligation to show that he is capable and responsible for a huge workforce. Secondly, Dr. Do Right has duty of loyalty to society. As Chief commanding officer of the hospital, Dr. Do Right must evaluate and oversee all daily operations of the hospital. He has an ethical duty to make sure all policies and procedures are in compliance with government regulations....
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