Advance Audit

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Category: Business and Industry

Date Submitted: 11/19/2012 08:38 AM

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1. Discuss whether or not CPAs who provide accounting, taxation, and related services to small business have a responsibility to serve as the “moral conscience” of their clients.

The accounting profession requires ethical behavior in order to maintain the public trust. Ethical problems and dilemma arise when there is a conflict in fulfilling the moral duties or obligations and self interest. Therefore the CPA and public accountants are required to act in the line with the standards and code of ethics. According to the Utilitarian theory the action is considered as ethical if it results in achieving the greatest good to the maximum number of people. The AICPA principle of professional conduct requires that members should act with responsibility, in public Interest, objectively and independently, with integrity and due care towards the professional and technical standards to deliver the quality services.

A profession is considered as a group of specialized people who posses skill based upon their impenetrable knowledge and thus they are expected to act in the best interest of public. According to the IFAC code, the responsibility of the professional accountant is not to satisfy the needs of the employer or the client but to serve the public interest. Adhering to the above expectations and professional requirements, the CPAs should serve as the moral conscience of their clients. When the CPAs come across any activity of the client which is not ethical they should discuss the issues with their clients considering the ethical and moral standards. The professional should try to convince the client to make ethical decision making and act in the manner that is beneficial to all. Disassociating with the clients acting unethically is easier that acting as moral conscience of the clients. It is more professional for the CPA to motivate the client to act ethical and take moral decisions. The CPAs can use the Thorne’s model to convince their clients to follow the ethical...