The client’s management is responsible for preparing the financial statements which auditors examine and issue a report, thus providing reliability of the financial statements by users when making economic decisions. The auditors’ report on financial statements and related disclosures for both public and nonpublic entities provides or disclaims an opinion on whether the financial statements and related disclosures are presented in accordance with the Generally Accepted Accounting Principles (GAAP) (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2015). This opinion is the conclusion reached by the auditors after tests of controls and substantive procedures that have been performed during the audit engagement. Paragraph 10 of Auditing Standard 3101 “Reports on Audited Financial Statements” states the type of opinion the auditors may express in various circumstances (PCAOB, 2016):…
Independence is one of the six ethical principles of the AICPA Code of Professional Conduct. Audit team members are required to be objective and independent with regards to the audit by maintaining objectivity and being free of conflicts of interest in discharging professional…
There are a lot of many different companies in many different industries across the globe. One of those industries is the accounting industry. Which has many different careers and titles; there is tax accountants, forensic accountants, financial advisors, and auditors. This essay will discuss what the PCAOB does, some consequences if firms do not do their audit correctly, a recent lawsuit, and what they did in result after the lawsuit. Like other accounting firms, the PCAOB has several duties.…
Expectations of the CPA Ontario Rule of Conduct 202.1 Integrity and due care All members mush show professionalism in all the duties and be honest in all their dealings. The expectations of good faith is to require members to be honest and trustworthy in performing professional services. Professional auditors must be honest. If members of dishonest work, this job cannot maintain a good reputation in the public interest.…
The CFP Board's rules all relate to particular principles in its code of ethics. For instance, in defining the duty of integrity, the rules require planners to avoid misleading ways of soliciting business, fraudulent conduct, and mishandling of client's funds. To be objective, a planner must always act in the best interests of the client, using reasonable and prudent judgment in making any decisions. To remain competent, a planner must take continuing education classes and avoid giving advice in areas in which the planner lacks sufficient knowledge. In order to demonstrate fair treatment, planners must disclose specific information about conflicts of interest, including compensation from outside sources such as mutual fund, insurance, and brokerage…
When the element ability comes into play that means that public trust comes into play as well and all who accept membership in the American Institute of Certified Public Accountants commit themselves to honor the public trust. In return for the faith that the public reposes in them, members should seek continually to demonstrate their dedication to professional excellence. Under the Rule 201- General Standards of the AICPA Code of Professional Conduct Competence is defined as a member's agreement to perform professional services implies that the member has the necessary competence to complete those professional services according to professional standards, applying his or her knowledge and skill with reasonable care and diligence, but the…
The responsibility of a private practitioner is significant; therefore, it is crucial to maintaining precautions. Including, acquainting oneself with the ACA Code of Ethics, in addition to state and federal laws, awareness of ethics and regulations lessen the potential for legal liability (ACA, Code of Ethics, 2014). Complying with the state licensing board, and practicing within the counselors' scope of experience and training. Furthermore, by developing and maintaining the client's trust, and establishing strong professional boundaries, a healthy counselor-client relationship is preserved. Additionally, it is necessary that a counselor accurately records upon intake, a biopsychosocial assessment, to provide deeper insight into the needs…
Auditor Independence (Title 2) 3. Corporate Responsibility ( Title 3) 4.…
As more states legalize PAS across the country, counselors must be prepared to assist clients who are struggling with end-of-life decisions, specifically PAS. But, as one can see there are no definite guidelines. The objective of the ACA ethical codes is to do no harm. In fact, it states that all a counselor must avoid harming the client and take steps to minimalize unavoidable harm (Section A.4.a.). It seems obvious that death would constitute harm to self, so such obligations would necessarily apply in end-of-life situations.…
The American Institute of Certified Public Accountants (AICPA) is the world’s largest representation of certified public accountants (CPAs). Established in 1887, the AIPCA serves as an advocate for CPAs, CGMAs, and has a mission of powering the success of global business, CPAs, and CGMAs through the use of education, resources, and advocacy (AICPA, 2016). The AICPA supports FASB by providing technical support, standard setting, and guidelines to CPAs nationwide. Because accounting is complex in nature this governing body works in collaboration with other institutes to ensure that organizations are adhering to the accounting standards established under the General Accepted Accounting Principles (GAAP). This paper will focus primarily on the AICPAs relationship in advising the FASB, their function in setting the auditing standards for public accounting firms and their relationship with authoritative rule making boards such as The International Accounting Standards Board (IASB), The Government Accounting Standards Board, and the HFMA Principles and Practice Board.…
When adhering to the client’s attitudes and beliefs, the ACA Code of Ethics addresses in F.2.a how supervisors must be aware of the multiculturalism and diversity. Also, in F.7.c, the code addresses how counseling educators must apply multiculturalism/diversity teachings into trainings, courses, and workshops to help educate professionals on multiculturalism. Lastly in section F.11. , it discusses multiculturalism/diversity within the counseling education and training programs. In F.11.a.…
Ethics are moral principles that govern a person’s behavior. They were created from the branch of philosophy that evaluates moral behavior, concepts and language. Ethics are the basic perceptions and the essential principles of decent human conduct. Obtaining an “ethical life” involves: protecting, structuring, and endorsing concepts of right and wrong conduct. With that being said, it is crucial within the profession of counseling and psychotherapy to follow ethical standards and motives (Ethical Principles, 2010).…
A tax practitioner's main responsibilities are providing clients or taxpayers proper and professional advice, as well as preparing and filing accurate tax returns. Their duties include informing the clients of any taxation requirement and possible conflicts of interest, as well as analyzing the clients’ taxation situation. Moreover, when performing in tax practice, tax professionals should interview their clients to understand their personal situation and determine the proper form to be prepared. Also, they would gather required financial information delivered honestly and free of misrepresentation, such as the clients’ annual income, expenditures, exemptions and deductions. Finally, tax professionals complete and file the tax returns.…
The quality of audits conducted on public companies is questionable. The Public Company Oversight Accounting Board (PCAOB) tries to lessen these concerns through its inspection process. The following report provides an assessment of the PCAOB inspection process. This includes an analysis of how the PCAOB conducts its inspections, the pros and cons of this method, and the pros and cons of conducting inspections on public-company audits.…
Those subject to the regulations of other authoritative bodies, such as the US Securities and Exchange Commission, may wish to consult with them for their positions on these matters. Interpretation 2003-01 The Provision of Non-Assurance Services to Assurance Clients The Code of Ethics for Professional Accountants addresses the issue of the provision of non assurance services to assurance clients in paragraphs 290.158−290.205 inclusive. The Code does not currently include any transitional provisions relating to the requirements set out in these paragraphs however the Ethics Committee 5 has concluded that it is appropriate to allow a transitional period of one year, during which existing contracts to provide non assurance services for assurance clients may be completed if additional safeguards are put in place to reduce any threat to independence to an insignificant level. This transitional period commences on December 31, 2004 (or from the date of implementation of the Code for members of those IFAC member bodies which have adopted an earlier implementation date).…