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Compose a 2250 words essay on AICPA Ethics & COSO Framework for Internal Controls. Needs to be plagiarism free!Download file to see previous pages... The first issue is about how Harold Potter gained
Compose a 2250 words essay on AICPA Ethics & COSO Framework for Internal Controls. Needs to be plagiarism free!
Download file to see previous pages...The first issue is about how Harold Potter gained employment and shares with Dumbledore Enterprise, a public company. Being supported by his uncle to gain entry to the company is not a serious issue. However, once he gained membership to the AICPA, there were implications that made his continuous involvement in Dumbledore risky. Section 101.01 states that a person should be independent in performance of professional services (Independence, 2011 para 1). This therefore means that once he was connected to Dumbledore as a previous employee and a shareholder, he would lose his independence and could not provide services for the company. Upon graduation, Harold decides to describe himself as 'Accountant' on his business card. Section 57 Scope &. Nature of Services states that Members “...should observe the principles of the Code of Conduct in determining the scope and nature of services to be provided.” (Scope &. Nature of Services, 2011 para1). There are issues with this description because although he was qualified, he did not have the required level of experience to be considered a member. This therefore means that it was unethical for him to present himself as an accountant when he was not a full member. Section 191.65 forbids people to use the title CPA when they are not qualified members in Public Practice to use the designation of 'Accountant' without making disclosure of his capacity (Ethics Ruling, 2011 para 65). Clearly, Harold was not in public practice then so again, it was inappropriate to use the title of Accountant without specifying the scope of this designation. Using the Firm Name Aaron, Potter &. Zzucker (3) For the sake of getting popularity and exposure in the phonebook, Harold decided to use the above name. According to Section 501.10 False Misleading or Deceptive Act in promoting or Marketing Professional Services members should not use false or deceptive means to promote their firms (Acts Discreditable, 2011 para11). Clearly, Harold Porter was working alone. There were no Aarons and Zzuckers in the firm who were CPAs. This therefore means that the use of the name was misleading. Further instruments in the Code of Ethics go against Harold in this direction. Section 502 prohibits members from advertisment, that is false, misleading and deceptive. Section 505.1 Form of Organization &. Name says that members shall not practice public accounting under a name that is misleading (Form of Organization &. Name, 2011 para 2). Providing Tax Services &. Audit for Dumbledore (4) Although Harold did not have any experience in tax and auditing, he took the offer of his uncle to provide tax and auditing services for Dumbledore. There are two major components of the AICPA code which makes it unethical and potentially illegal for Harold to take these options. Section 201.2 Competence requires members to undertake professional services that they are reasonably expected to complete with professional competence (Competence, 2011 para2). Since Harold had never done tax and auditing before, it was wrong to do the books of a public company without any supervision because there was no assurance that he had the necessary professional competence.
