Standard Issues Aicpa - 993 Words

Standard Issues: AICPA The American Institute of Certified Public Accountants has created a code of professional conduct that all certified public accountants must follow. This code of conduct lists the responsibilities CPAs have when working with a company s financial information. The AICPA also includes information regarding the integrity, objectivity, independence and due care that CPAs must use when working in the accounting industry. The AICPA offers an ethics course for accountants to refresh their understanding of accounting ethics. The AICPA professional code of conduct is designed to protect the individual and users of the company’s financial information. The accounting scandals of Enron, WorldCom and Sunbeam during the†¦show more content†¦The Code of Professional Conduct could not possibly proscribe every action that is to be avoided. In light of the strict principles and rules of the AICPA, accounting ethics has been deemed difficult to control as accountants and auditors must consider the interest of the public which relies on the information gathered in audits while ensuring that they remained employed by the company they are auditing. They must consider how to best apply accounting standards even when faced with issues that could cause a company to face a significant loss or even be discontinued. Due to several accounting scandals within the profession, critics of accountants have stated that when asked by a client what does two plus two equal? the accountant would be likely to respond what would you like it to be?. This thought process along with other criticisms of the profession s issues with conflict of interest, have led to various increased standards of professionalism while stressing ethics in the work environment. From the 1980s to the present there have been multiple accounting scandals that were widely reported on by the media and resulted in fraud charges, bankruptcy protection requests, and the closure of companies and accounting firms. The scandals were the result of creative accounting, misleading financial analysis, as well as bribery. For example, various companies had issues with fraudulent accounting practices, including Enron, WorldCom and AIG. OneShow MoreRelatedHomework Week 1 Accounting984 Words   |  4 Pages1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Boards Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of aRead MoreUnethical Business Practices Of Multinational Companies1512 Words   |  7 Pagesconvergence of accounting standards remains a challenge, so has a set of ethical standards. The need for a global set of standards has become paramount over the last decade. Through my extensive review and research of literature, there appears to be an ongoing need for convergence. The study concludes that through cooperative efforts, between governing bodies such as AICPA and IFAC, we are on the right track in terms of acceptability. â€Æ' Global Set of Accounting Standards The need for a single setRead MoreAcc/537 Week 1 Basic Accounting Concepts980 Words   |  4 Pagesorganization has developed a standard of reporting that has been accepted because of the universal application (pg. 6, Kieso, Weygandt, Warfield, 2007). There are four organizations that are evolved in the development on the GAAP in the United States and offer significant authoritative support; Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), the Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board (GASB) (pg.6Read MoreBasic Accounting Concepts and Business Structures971 Words   |  4 Pagesfor effective accounting information. Basic Accounting Concepts and Business Structures Basic accounting concepts and business structures are important to a business’s success. Using generally accepted accounting principles (GAAP) brings a standard to financial statements. There must also be effective accounting information. A company can choose to use cash basis accounting or accrual basis accounting. Generally, GAAP does not accept cash basis accounting. A company can decide what typeRead MoreAmerican Institute Of Certified Public Accountants1179 Words   |  5 PagesCertified of Public Accountants (AICPA), was founded in the United States of America. The professional organization was founded in 1887, to help ensure that the accounting profession will gain the same respect as the other prestigious occupations have received from the public. The accounting profession, similar to the medical, legal, and engineering profession, is characterized by â€Å"†¦rigorous educational requirements [150 credit hours], high professional standards, a strict code of professional ethicsRead MoreMultinational Corporations And The Standards Of Their Home Country That Have More Than One Way For An Issue1397 Words   |  6 Pages multinational corporations are starting to use the accounting standards of their home country that might have more than one way for an issue, IASC has gained encouragement to create standards for transparent reporting and applicably consistently and consistently with the world, standard setters for securities and nationally are finding standard setters for other standard setters. 1B The auditor helps assure that accounting standards are be applied correctly all the time. The auditors are expectedRead MoreEssay about Enron Case637 Words   |  3 Pagesauditing standards? If so, list those standards and briefly explain your rationale. a) General Standard #2: The auditor must maintain independence in mental attitude in all matters relating to the audit (AICPA, 2012). Anderson did not practice independence from the company they were auditing. They were too involved in too many of Enron’s activities. b) General Standard #3: The auditor must exercise due professional care in the performance of the audit and the preparation of the report (AICPA). TheyRead MoreExcello Telecommuncations1587 Words   |  7 Pageswants to move the sale quickly. Because of storage issues by the Data Equipment, the sale will have to occur in January 2011 when the buyer will have adequate space to hold the equipment purchased. Terry wants to make the revenue at all costs and will do whatever it takes to make it happen. That type of motivation can create questionable decision making that can potentially violate laws and the AICPA Code of Conduct. Excello Legal Issues The failure to meet earnings estimates are of significantRead MoreExplaining Basic Accounting Concepts And Business Structures853 Words   |  4 Pagesenvironment to comprehend all aspects of finances in various business. The standard that FASB has worked identifies the sources of accounting principles and the blueprint for choosing which principle to use in the preparation of financial statements. According to Intermediate Accounting Wiley, the standard categorizes the major sources of GAAP consist of: FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins. The sources of principles are as followsRead MoreThe Cap Issue Accounting Standards1001 Words   |  5 Pages1 a. In order to develop a comprehensive set of accounting standards, The Committee on Accounting Procedure (CAP) was formed by the American Institute of Certified Public Accountants(AICPA) in 1939. However, the CAP issue accounting standards case-by case without overall accounting theories. In addition, CAP requires all members be AICPA members, ignoring financial execs, academics and investors. In 1959, CAP was replaced by the Accounting Principles Board (APB). The board members of APB were from