This week we are studying the AICPA Code of Professional Conduct and beginning our study of ethics...

Question

This week we are studying the AICPA Code of Professional Conduct and beginning our study of ethics in auditing and accounting. I'd like you to answer the following three questions on the Discussion Board - these questions came from an Ethics course I had to take in 2013 to maintain my Virginia CPA license. All students must start their own thread and provide an answer before seeing other students' responses.

1. You are a partner in your CPA firm, and one of your audit clients offers you box seats to a basketball game. Do you accept the tickets?

2. Your daughter calls you at the office in a panic. She needs a folder and some paper clips for her school project that is due the next day. It’s late, and you’re tired. Do you take those supplies from the office supply closet?

3. You were recently chosen by your partners to serve two years as managing partner. Your firm outsources all large printing projects. Your brother owns a print shop. Do you hire him to handle your firm’s work?

Robert · Accepted Answer

1. 
There are always ample opportunities for a CPA to accept gifts from the client. This could 
come in appreciation of a job or as an incentive to do the job well. However, it is necessary as 
per the Ethics code to determine whether the item is a gift or entertainment. In this case, the 
basketball match tickets would be considered a gift. 
The Professional Ethics Executive Committee of the AICPA identified specific threats to 
independence when a member accepts gift or entertainment from his client. The Ethics 
Rulings are considered under Rules 101 and 102. As per these rulings, the objectivity and 
independence is not considered impaired if the value of the gift is insignificant or reasonable 
under the given circumstances. Conversely,

This week we are studying the AICPA Code of Professional Conduct and beginning our study of ethics in auditing and accounting. I'd like you to answer the following three questions on the Discussion...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment