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Shark Corporation

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Submitted By jjbuckner
Words 538
Pages 3
Discussion Board 3
Jenni Buckner
Liberty University
Acct 612: Tax Research & Jurisprudence
Professor Janet Forney
November 22, 2012

One of my clients, Shark Corporation is trying to make as much money on a transaction. They are selling a building that has some substantial hidden damage. The Shark Corporation wants me to tell the client there is no damage to the building. This raises some ethical dilemmas when practicing as a professional, especially as a CPA. A CPA has many tasks including “continuing responsibility to improve the art of accounting, maintain the public’s confidence, and carry out the profession’s special responsibilities for self-governance” (Colsen, 2004, p. 80). If I have already told the other side that the building is fine and find out after there is damage, I would contact the party and relay the message to them. As a CPA, we must understand that as a professional “we must consider the interests of governmental bodies, credit grantors, stockholders, partners and proprietors, public investors, and the public-at-large” (Dixon, 1975, p. 21). Professional CPAs need to uphold their reputations in order to ensure future success. This scenario brings many ethical issues about as a professional. The first is the ethical dilemma with withholding the information. The next is not being completely honest with the second party. As a CPA, it is critical for us to understand that we need to keep the client happy but we should not break any our professional or personal ethical standards. Social responsibility is a huge ethical issue this scenario brings about. We have a responsibility to others besides our clients. The AICPA Cod of Professional Conduct has two rules that are applicable to this scenario, the Rule 102 and 501. The Rule 102 discusses that a member knowingly misrepresents information when “Signs, or permits or

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