ou must label each answer with the number of question. Each question must have a

Question

ou must label each answer with the number of question. Each question must have at least three sentence answers. There is no maximum sentence, use as many as you wish to thoroughly answer the question. All answers must be complete sentences using proper grammar and spelling. 1. Explain an ACCOUNTING ethical situation you have been involved in 2. Explain what you did in the situation 3. Explain other actions that would have been appropriate in the situation. (If you have not had an accounting situation in which you were involved in, you may use a current case in the news to answer questions 1-3). Points will not be given if ethical situation is not an accounting situation. Example. I know somebody is cheating on a test. This is an ethical situation but not an accounting ethical situation. 4. Explain the Sarbane-Oxley Act, the impact of the act, and what additional actions are required by the CPA due to this act. After you post your discussion, you must also comment on at least two other students posts. Again these responses should be complete grammatically correct sentences and respectful of the each other.

Explanation / Answer

1. Explain an ACCOUNTING ethical situation you have been involved in

During my job as part time accountant I faced an unusual situation when I had to pass journal entries of depreciation where the assets were used by the store owner for personal purpose also. As per IRS rulings, depreciation can be claimed only of the part which was being used in the business, however the owner was taking full deduction

2. Explain what you did in the situation

I informed the store owner regarding the irregulariy but he did not seem to pay attention to it. Since it was a small store down the sidewalk, he was preparing his own return and was not required to audit as well. Thus he misappropriated the expenses and continued his irregular accounting and taxation adjustments since he was not accountable to anyone.

3. Explain other actions that would have been appropriate in the situation.

I would have approached IRS lighteining the of the alleged wrong doing. However since it was just a part time job and did not had much material amounts involved, I just gave a note of this to the owner and did not do anything.

4. Explain the Sarbane-Oxley Act, the impact of the act, and what additional actions are required by the CPA due to this act

SOX was passed to make the financial markets more secure for the investors by bringing in the regulations which made the company administration more strict, transparent and accountable for the losses. Its impact has been the improved corporate governance and more than ever reliance of the investors over the information provided in the financial statements. As CPA, one can be in management and auditor role which require them to work more deligently as any misstatement on their part can lead to jail time also for them. No doubt the law has happened to open new work horizons too.

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