New York, New York Henry was in his last semester of undergraduate accounting at

Question

New York, New York

Henry was in his last semester of undergraduate accounting at the Great Desert University in the Southwest. His record was strong (3.75 GPA), he was outgoing, and involved in innumerable activities. He decided to seek a public accounting job in New York City. Things went well for him and he spoke with you about how much he enjoyed the trip. He stated that each of the Big 4 seemed to have innumerable large publicly traded companies with headquarters in New York and the work experience would be incomparable. Otherwise, it seemed exciting in that in his week in New York he enjoyed watching the Yankees beat the Red Sox, visiting a museum, attending a Broadway play, and eating at good restaurants. Shortly thereafter he received an offer from each of the firms he interviewed with. He accepted a job with one of the firms. Approximately a week later Henry seemed somewhat upset. You asked him what the problem was and he asked if you could speak “confidentially” and give him some advice. It turns out that Henry billed each of the four firms for his travel expenses and stood to profit approximately $5,000. He had just received the reimbursement from the second firm and he felt somewhat remorseful and was concerned that he might even get caught. He then asked you what, if anything, you thought he should do. What advice would you provide to Henry?

Write at least two to three page report (2-3) New York, New York

Your assignment must follow these formatting requirements: • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Explanation / Answer

TO

Mr. Henry

You have just completed your graduation with good GPA score and poised to start a professional career. As you have decided to become an Accounting professional, by joining one of big 4 audit firms, it is imperative that ethical rules are followed in your approach to the profession.

The pre requisite for the accounting profession are the basic ethics revolving around “Integrity, Independence and Objectivity”. Presently, one of the challenges facing the profession is the short supply of ethical leaders.

Since high school students enter college with an increasingly diverse set of values, they need to embrace ethics and morality when entering the accountancy profession. Accounting profession is one of the noble professions with a significant public interest responsibility.

Accounting as a profession has received significant attention for its failures, which have resulted in attempts at improvement. The vital role of the accounting profession in serving the public interest is to be well recognized.

The public relies on professionals. The members of the profession must strive to maintain high standards, including ethical leadership, professional and technical competence, integrity, conduct that garners public trust, and placing the public interest above self-interest. For the most part, they have been successful, but some have failed, and consequently the reputations of these professions have suffered.

Hence, in the above context, it is suggested to return the erroneously claimed reimbursements back to the respective firms. One of the conditions for allowing the reimbursement is the proof of actual expenditure which is based on actual bills. During audit scrutiny, it would come to the attention of the firms that the claims have been fraudulently made and it would bring disregard to your image and the career. It is ethically incorrect to claim entertainment expenditure of personal nature in the pretext of allowable expenditure.

I wish you the very best in your future endeavors and expect you to reach greater heights in the profession.

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