For each of the shuations listed, identity which of three principles (integrity,
ID: 347906 • Letter: F
Question
For each of the shuations listed, identity which of three principles (integrity, abjectivity and independence, or due care) from the AICPA Code of Professio violated. Assume all persons listed in the situations are members of the AICPA (Note: Refer to the AICPA Code of Professional Conduct) Select the principle from the AICPA Code of Professional Conduct that is violated for each of the situations. a. Sally, an accounts payable clerk, must have her manager sign off on all checks over $10,000. Her manager is out of the office this weok so Sally forges her signature to make sure the check is sent out on time agency specializing in bike tours. Angelica does not disclose to her firm that her mom is a co-owner of Bike Tyme, since Due cane Angelica knows that she wll not allow herself to be influenced by her mom purchase a new couch for his home not attend the training this year because he feels he already understands the policies. Significant policy updates have c. Mark, the CEO of his company, has the authority to approve all transactions. As a rosult, he uses company funds to Objectivity and independen d. Joe has been working for his company for ten years and is required to atend internal control training annually. Joe does occurmed during the past year Choose from any drop-down list and then contnue to the next question Sample Tests and Quizzes here to search F10 3 6 8 9 0Explanation / Answer
Answer:
a. The Principle of integrity is applicable here, as the Sally (account payable clerk) is not authorized to sign off the check above $10000, but still she managed to put the sign of her manager which is the case of integrity. She is not supposed to put the sign of her manager. This is a major integrity issue.
b. Principle of objectivity and independence : In this case the auditor is going to audit a firm which is co-owner by her mother. So in this case the conflict of interest arises if the daughter performs the audit of a firm where her mother is co-owner. So as per principle of objectivity and independence, it should be free of conflict of interest. Here the conflict of interest is present hence this case is against the principle of objectivity and independence.
c. Principle of Integrity applicable here – The CEO of the firm who is approved for all transaction, purchase couch for his home is an integrity issue, as being CEO he is not suppose to purchase personal things from company account. This is a major integrity issue.
d. Principle of Due Care is applicable here, as the Joe has declined to attend the training, but he is suppose to attend the training, because the content has changed significantly. As per due care of principle, the employee should continue to improve the technical and ethical standards to improve the business services. Thus it is a case of not comply with principle of Due care.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.