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AICPA And The Code Of Ethics In Auditing

925 Words4 Pages

The auditing standards require that the auditors execute their duties within the confines of the regulating standards. However, sometimes the auditors are faced with the ethical dilemmas that can compromise their ethics. The code of ethics governs the behavior of the CPA practitioners and thus they should ensure that they adhere to them. Some of the codes of ethics which govern the behavior of the CPA practitioners are: Integrity: This aspect demands that the auditors should act honestly and truthfully when providing the auditing services to their clients. Confidentiality: All auditors either external or internal owes the client a duty of respecting the value and ownership of information they obtain from the client, and they should disclose that information without the consent of the client, where there is a legal obligation to do so or a professional obligation. Independence: The auditor …show more content…

One of the ways to safeguard the confidential information of La Mancha is to adhere to the AICPA ethical standards. AICPA requires all professional accountants to uphold integrity, confidentiality, and independence principles. The confidentiality principle states that professional accountants should not disclose private client’s information that is obtained in the delivery or discharge of their professional duties for third party’s benefit. The information on La Mancha’s intention to purchase the store was gained in the course of delivering accounting services to the firm and therefore, it is confidential information. Quixote would use it for their benefit if it was revealed. Therefore, the observance of the confidentiality principle will deter disclosure of the information to Quixote Electronics. By putting in place safeguards to avoid the conflict of interest arising from this situation, Michael should consult another professional for the best outcome of this

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1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).

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Respect for confidentiality, B.6.b. Confidentiality of records and documentation, and B.6.i. Reasonable precautions. 3. Nature of Ethical Dilemma

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Jessica Fiyero is a 19 year old who has come to see Jessica for counseling. Fiyero is in a long term relationship with his boyfriend of 3 years. His boyfriend is 16. The state they are in requires the age of consent to be 18. Fiyero is also Deaf.

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“Cybersecurity is the body of technologies, processes and practices designed to protect networks, computers, programs, and data from attack, damage or unauthorized access (Lord, 2017).” The defining moment for cybersecurity started when the first internet worm was introduced in 1988 in MIT and resulted in the first felony conviction in the 1986 Computer Fraud and Abuse Act. Rule 301 AICPA Code of Professional Conduct Confidential information states that “members in private practice shall not disclose any confidential client information without the specific consent of the client.” (Code of Professional Conduct and Bylaws 2017). Whether you are in tax, AUDIT, advisory or other service areas, you will be in violation of this ethics requirement if your client’s information is stolen (Code of Professional Conduct and Bylaws 2017).

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It can slightly modify a counselor decision when a counselor has to identify the problem, apply the ACA code of ethics, determine the nature and dimension of the dilemma and generate a potential course of action. However, if need a counselor may be advised to seek supervision in for certain instances. It can slightly modify a counselor decision when a counselor has to identify the problem, apply the ACA code of ethics, determine the nature and dimension of the dilemma and generate a potential course of action. However, if need a counselor may be advised to seek supervision in for certain instances. It can slightly modify a counselor decision when a counselor has to identify the problem, apply the ACA code of ethics, determine the nature and

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Since the issue with Sara deals with sexual abuse, I will not disclose to officers her sexuality, her grades in school, or any impertinent information. The other codes involved in Sara’s case are the ACA 2014 Code of Ethics Standard B.5.a, ACA 2014 Code of Ethics Standard B.5.b, and ACA 2014 Code of Ethics Standard B.5.c which state that confidentiality of minors must be protected in any form that information is received, and inform parents and guardians of client’s rights and confidentiality with respect to cultural diversity of families and state laws, and to involve the client’s parents along with the client in the decision making process(ACA Governing Council, p. 7). This implies that Sara’s mother is informed of the abuse as long as she

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The AICPA Code of Professional Conduct presents another Confidential Client Information Rule (Section 1.700.001), which was implemented to help expand the guidance on maintaining the confidentiality of client data. The idea of accountants' work requires that they get access of their clients' confidential data. Such data could without much of a stretch give the bookkeeper an advantage and rapidly create money related profits for the bookkeeper, to the detriment of the client, obviously. Also, doing as such would require the bookkeeper to oppose the code of ethics. The Confidential Client Information Rule was set up on the grounds that the individual respectability of people in general bookkeeping firm is fundamental to the usage of the verify

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The purpose of this paper is to apply professional values, codes of ethics, and the decision-making model to an ethical dilemma between a counselor and client. The paper discusses whether the dilemma is solely an ethical dilemma or a combination of ethical, legal, and professional factors. The dilemma between a counselor and client demonstrates a combination of ethical, professional, and legal factors that directly affect the client. The dilemma is broken down by identifying the problem through a thorough investigation of the facts. Through the application of the American Counseling Association (ACA) Code of Ethics, this paper determines the nature and dimensions of the current dilemma and generate the best course of action to deal with the

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Counselor need to be aware that there will also be situations where they need to make proper decision using the ACA code of ethics. The following five scenarios are the most serious violations of ethical practice. • The group leader does not mention confidentiality. Before a counselor starts a group he/she needs to mention confidentiality to the group.

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Marina has approximately three options regarding the purchase of her former client Christobanks artwork. She could decide not to buy the artwork, obtain consent from the client to purchase the artwork, or simply buy the artwork without her clients’ knowledge. Two of these choices could cause a harmful outcome if Marina does not take the correct precautions. Before deciding what course of action is most ethical, Marina must thoroughly analyze each situation and weigh each course of action to ensure that they are in abidance to some ethical principles and codes.

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A) While performing an audit, expertise in the field of accounting and auditing only is not sufficient. In the preparation of financial report involves the use of expertise in a field other than accounting and auditing, the auditor, who is skilled in auditing and accounting may not possess the necessary expertise to audit that financial report. Thus, Australian Auditing Standard has included some provision through its standard in which an auditor can use the work of an Auditor’s Expert. Australian Auditing Standard (ASA) 620 defines the provision of use of work of auditor’s expert. To determine whether to use the work of auditor’s expert ASA 620 defines as:- Determining the need for an Auditor’s Expert: • Obtaining an understanding of the entity and its environment,

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Planning is transforming socially, but to achieve change it has to bring together, politicians, planners, and residents (Sandercock, 2004). Citizen’s opinions and rights should be taken into consideration. It is the number one rule in the planning process for participants. It says, “recognize the rights of citizens to participate in planning decisions” (Ethical, n.d.). Cities cannot progress unless they change their ways of doing things.

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These “standards” are stated to set for the expectations of the employees and shareholders so that the company not only acts “ethically” but it seen by the public as “ethical.” 2nd item - Teaching the Code of Conduct

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However, the rules of ethical codes and compliance should be stated and explained clearly to staff members what is expected of them when it relates to ethical behavior (Anjum, 2017). The objective of the code of conduct is to advise the staff members to perform all their duties in a legal ethical manner (Anjum, 2017). This will ensure that it leaves no room for interpretation when it comes to ethical behavior within the company (Anjum, 2017). The ethical code should include a clear purpose and direction (Anjum, 2017). The ethical code of conduct should include focal points such as: business values, guiding principles, the role of leadership, regulatory and compliance standards, and staff member responsibility (Anjum, 2017).

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It is important to the external auditors to maintain skepticism and professional due care in doing auditing. However, the level of skepticism of an auditors should not be decreased even though the level of fraud risk in the management was assessed to be low. If auditors have less skepticism and suddenly fraud was found in the management, hence it will caused auditors to do more audit procedures that is mean more costs to incur. Therefore, we recommend that, every auditors need to maintain their skepticism in doing audit work, no matter that auditors has belief the internal control of the management is good and whether auditors has experiences regarding the management fraud. Senior level of auditors may always supervise the lower level in ensuring that they are exercising professional skepticism as required.

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