Which ethical/professional standards Objectivity: MR.X should not permit bias or influence, because of his relationship with shareholders, to interfere with making the right choice.

1. A brief introduction of the person you’ve identified: how you know this person, what kind of work this (biography) person does.

Interview with Mr.R.A.  It has been 4 years that i’m working as an accountant  for Mr.R.A , I learned a lot from his frofiision and ethical standard  that he established in work.he is professional CPA, very ethical and follows rules. He has graduated in 1984 and has bachelor of accounting. and CPA.he worked as an Au

 

Paper starting Quote

“It has been said that ethics is all about how we act when no one is looking. In other words, ethical people do not do the right thing because someone observing their actions might judge them otherwise, or because they may be punished as a result of their actions. Instead, ethical people act as they do because their “inner voice” or conscience tells them that it is the right thing to do.”(Mintz, Ethical Obligations and Decision Making in Accounting,p15)

 

Mr.R.A as CPA he used professional values along with ethical reasoning to a dilemma faced by management.it was his responsibility to disclose the issue he found out from financial reporting   that the overriding responsibility of CPAs is to exercise sensitive professional and moral judgments in all activities. By linking professional conduct to moral judgment, the AICPA Code recognizes the important of rules an principles to apply CPAs work  for their judgment.

2. A descriptive account of the primary ethical issue related by the subject. Your subject may share a

The cased he explain from his experience was:

The liquor store and  distributor, which  has 4 partnership ,the company is small and didn’t have board of directors.(one of them was responsible for marketing, one for purchasing, 2 for sells and running store),Mr.X  was their external auditor ,that every year he dose the audit company’s financial statements to make sure everything is going well, in 2010 when he did his audit ,he figured out  comparing to the business ,based on that industry ,the sales tax they paid it is maybe less than the actual amount…he goes over al purchase invoices. And he found out how many percentage of purchase invoices are taxable  ,how much are not taxable and same for sales too.

Then he figured out  their 75% of purchases are taxable and 45% of sales are taxable.so its conflict and its problem for company’s future. He tried to find out why they reported sales tax less than the real amount, but how.  One of the owner who was responsible for cash register for 3 days  of week, he ring the register  wrong..,he ring taxable sales as a non taxable,(buyer instead of paying almost 10% of sells as a sells tax, he paid half to the same cashier or the owner) so it is big problem for company for future  failure to report correct amount of sells tax and penalties for those amount . CPA asked one of the partner who was responsible for marketing to goes over camera for last year. Then they find out the cashier (one of the partners who was responsible for sells) in big quantity amount of liquor sale , doesn’t charge the sales tax, because they noticed he take  a amount of cash from buyer and he instead  of putting it in cash register , he put it under counter of sells desk…. So the cashier doesn’t charge sells tax and get half amount instead of sells tax from buyer and take it for his self, and he does it for every big quantity of sells.

They figured out and the third party soled his ownership to rest of parties in very low price. then he went out of business.

This case it is not only abusing ethical standards ,the result and The most important part was we need to show companies liability in financial statement. Unpaid tax is liability, so wrong financial report may cues problem for future.

3. A critical evaluation of the ethical issue and the way it was handled by the subject.

The integrated model links to Rest’s framework as follows: integrated Ethical Decision-Making Process

1)Identify the ethical and professional issues (ethical sensitivity)

• GAAp: Financial statements do not fairly present financial position and results of operations due to improper expending of personal expenditures. Taxable income may be similarly misstated
• Who are the stakeholders 4 partners.
• Which ethical/professional standards Objectivity: MR.X should not permit bias or influence, because of his relationship with shareholders, to interfere with making the right choice.
• Integrity: Don’t subordinate judgment to shareholder even though he is your boss
• . Due care: Professional skepticism has been exercised; carry through diligently and insist on supporting evidence for the recorded expenditures.)

2) Identify and evaluate alternative courses of action (ethical judgment)

 

• Y the shareholder will have violated his ethical responsibilities
• allow him to repay the amount if he agrees to do so, or (b) bring the matter to the attention of the owners

3) Reflect on the moral intensity of the situation and virtues that enable ethical action to occur (ethical intent)

• do I want to be responsible for getting Paul in trouble with his dad, possibly fired? Paul may be prosecuted for his actions. The consequences for Ace are severe so I need to be sure of my decision
• I want to do the right thing but will my actions do irreparable harm to others? Should I be concerned about “caring about others” given the profession’s standards? Can I ever trust Paul again? What he did is wrong and I shouldn’t become a party to a cover-up. I am accountable for my actions; I need to maintain my integrity and not subordinate judgment to Pa
• Consider how virtue (i.e., intellectual virtues) motivates ethical actions
• 4) Take action (ethical behavior)
• Insist that steps be taken to correct the accounting; have the courage to stand up for my beliefs. I should give Mr.y an opportunity to explain why he did what he did, out of fairness, but be prepared to approach the other owners if his explanation and intended actions are not satisfactory
• Decide on a course of action consistent with one’s professional obligations.
• How can virtue (i.e., instrumental virtue) support turning ethical intent into ethical action?
• What steps can I take to strengthen my position and argument? How can I counter reasons and rationalizations that mitigate against taking ethical action?
• Who can I go to for support

 

from class :

whatever happened in Liquor shop cous from culture dimension, how culture can influence in workplace, the same person was born and grow up in meadelestern country where, theft and bribe was normal concept in companies.  and corruption was not bad .  this case is about more  individualism intimation,from workplace cultural dimension,( Hofstede’s Cultural Dimension) Individualism (IDV) focuses on the degree that the society reinforces individual or collective achievement and interpersonal relationships. In individualist societies (high IDV), people are supposed to look after themselves and their direct family, while in collectivist societies (low IDV), people belong to in-groups that take care of them in exchange for loyalty.

Discuss what you would have done in the situation.  Again,

use ethical theory, Discuss the issue with your immediate supervisor// Clarify relevant ethical issues by initiating a confidential discussion with an company’s standards, Ethics Counselor or other impartial advisor to obtain a better understanding of possible courses of action.

Set up princepless and standard for company as: Competence//confidentiality//integrity// credibility//

from class to justify your position. (10 pts)

 

4. Your reflection on the project. Use the questions for reflective papers outlined above,

substituting the word “project” for “class.” (2 pts)

5. An Appendix that describes the mechanics of the interview — where it took place, how long it ((need to answer this too))

 

took, etc.  You will also provide a summary of the interview, using your interview notes (this may

include material that does not make its way into the descriptive account in part 2 above).  (1 pt)

(2 points will be allocated for writing/grammar)

It is not necessary to use additional research sources (books, articles, etc.), but if you do, be sure to

give appropriate reference citations.

 

 

The cased he explain from his experience was:

The liquor store and  distributor, which  has 4 partnership ,the company is small and didn’t have board of directors.(one of them was responsible for marketing, one for purchasing, 2 for sells and running store),Mr.X  was their external auditor ,that every year he dose the audit company’s financial statements to make sure everything is going well, in 2010 when he did his audit ,he figured out  comparing to the business ,based on that industry ,the sales tax they paid it is maybe less than the actual amount….he goes over al purchase invoices. And he found out how many percentage of purchase invoices are taxable  ,how much are not taxable and same for sales too.

Then he figured out  their 75% of purchases are taxable and 45% of sales are taxable.so its conflict and its problem for company’s future. He tried to find out why they reported sales tax less than the real amount, but how.  One of the owner who was responsible for cash register for 3 days  of week, he ring the register  wrong..,he ring taxable sales as a non taxable,(buyer instead of paying almost 10% of sells as a sells tax, he paid half to the same cashier or the owner) so it is big problem for company for future  failure to report correct amount of sells tax and penalties for those amount . CPA asked one of the partner who was responsible for marketing to goes over camera for last year. Then they find out the cashier (one of the partners who was responsible for sells) in big quantity amount of liquor sale , doesn’t charge the sales tax, because they noticed he take  a amount of cash from buyer and he instead  of putting it in cash register , he put it under counter of sells desk…. So the cashier doesn’t charge sells tax and get half amount instead of sells tax from buyer and take it for his self, and he does it for every big quantity of sells.

They figured out and the third party soled his ownership to rest of parties in very low price. then he went out of business.

This case it is not only abusing ethical standards ,the result and The most important part was we need to show companies liability in financial statement. Unpaid tax is liability, so wrong financial report may cues problem for future.