Describe the basic features of the Revised AICPA Code of Professional Conduct.
What will be an ideal response?
• Emphasizes the public interest as the cornerstone ethical obligation
• Separate rules for CPAs in public practice and members in business
• Emphasizes a threats and safeguards conceptual framework approach to evaluating possible violation of the rules of conduct
• Uses a risk-based approach to assess whether safeguards adequately reduce or eliminate risk
• Provides guidance on how to deal with ethical conflicts that might impair objectivity and integrity
• Organizes the Code by subject matter rather than rules, interpretations, and rulings
• Specific requirements to avoid subordination of judgment for CPAs when differences exist with supervisors and auditors when differences exist with the audit firm.
You might also like to view...
What are the major difficulties that organizations are likely to face while attempting to communicate with customers?
What will be an ideal response?
Ethical principles are derived from all of the following except:
A. Societal traditions. B. Personal attitudes on issues of right and wrong. C. Cultural values. D. Cost benefit analysis.
In Figure 4.4, the most likely cause of a decrease in the equilibrium interest rate from i2 to i1 is
A) an increase in the expected inflation rate. B) a decrease in the expected inflation rate. C) a business cycle expansion. D) a combination of both A and C of the above.
To save for her newborn son's college education, Kelli Peterson will invest $1,500 at the end of each year for the next 18 years. The interest rate she expects to earn on her investment is 9%
How much money will she have saved by the time her son turns 18? A) $55,461 B) $69,027 C) $61,952 D) $68,399