Week 4 Homework Assignment: Code of Ethics
- Do you agree with the authors that a code of ethics should do more than stablish minimum acceptable standards? Why? Or Why not?
- Describe the five cardinal virtues of professional accountants that the article’s authors discuss.
- We’ve talked about rules-based versus principles-based accounting standards. Should we have rules-based ethics standards? Why or why not? Should they tell you exactly what to do in specific ethical situations?
- Compare and contrast the AICPA’s Code of Professional Conduct and the IFAC Code of Ethics for Professional Accountants.
SOLUTION
1. Do you agree with the authors that a code of ethics should do more than stablish minimum acceptable standards? Why? Or Why not?
Yes, I agree that a code should do more than just establish the bare minimum of acceptable standards. The minimal acceptable requirements let accountants and management to take advantage of technical exceptions and loopholes, resulting in financial statements that are compliant with GAAP but do not fairly and ethically depict the firm. This circumstance acts as a cover for issues that might be dealt with if the accountant acted ethically, but as there are just minimal standards in place, there is no law that would apply in this instance and hence no penalties for the conduct. Stablishing more than minimum standards helps to keep discipline in the profession & helps the accountants to understand the values & aspirations related to ethics in every situation in a very clear manner…….please click the icon below to purchase the solution at $20