UOPX ACC 407 - Taking Account of Ethics
Course Acc 407-
Pages 2

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Taking Account of EthicsTaking Account of EthicsAccess the AICPA's Code of Professional Conduct:On ET section 102 integrity and Objectivity is related professional work ethic. .02 102- 1 – Knowing misrepresentations in the preparation of financial statements or recordsAt this section, it discusses how important a professional accountant perform his duties contain fact material, financial statement and correct information. The misrepresented facts and misleading information will affect the trust of investor or client. Moreover, the most affection is the professional of accountant.The case of misrepresentation of financial statements: The $5 million suit Auto-Owners Insurance Co. filed against Touche Ross & Co. for misrepresentation of financial statements is one of many the firm faces when their accounts file for bankruptcy. Auto-Owners filed suit against Touche in April claiming the CPA firm committed professional malpractice in its preparation of financial statements for Phoenix Contractors Inc. during the years of 1981, 1982, and 1983.Rivers, A. (1986). Bonding firm sues touche. Grand Rapids Business Journal, 4(11), 1-1. Retrieved from http://search.proquest.com/docview/216746407?accountid=32521 ;.03 102- obligations of a member to his or her employer’s external accountant. This section is related to .01 Rule 102 – integrity and objectivity with more detail explanation. The way of providing professional service in CPAs in commerce and industry, while required to meet the same high ethical standards as accountants in public practice, often must handle ethical issues differently. At this section covers a member's obligations in dealing with an employer's external accountant, says that simply answering all questions truthfully and factually is not sufficient; if the external auditor should know material information that is not disclosed by the company, he has violated the code.Handler, L. D. (1994). A question of ethics. Journal of Accountancy, 178(4), 111-111. Retrieved from http://search.proquest.com/docview/206758669?accountid=32521 ;Above two sections makes me think of “scandal of Enron”, according tax regulation from IRS the one of reason of Enron is: The transactions were extremely complex, requiring Enron to set up hundreds of partnerships based in foreign tax havens. Enron was assisted in setting up these partnerships by some of Wall Street's biggest banks and law firms. ;The Tax Court ruled in Enron's favor. Enron is misrepresentations in the preparation of financial statements or records and lost the information of its candid. ;Bartlett, B. (2002, Feb 11). Was the IRS behind Enron? Human Events, 58, 16-16. Retrieved from

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UOPX ACC 407 - Taking Account of Ethics

Course: Acc 407-
Pages: 2
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