Question

were CPA involved in Enron scandal act with integrity as defined by AICPA code of professional...

were CPA involved in Enron scandal act with integrity as defined by AICPA code of professional conduct? reason

Homework Answers

Answer #1

CPA firm involved in the Enron case was Arther Anderson and other employeers who were CPA qualified and they were involved in the carrying out of scandal by taking the subjective interpretations of the law which were not the intention of law makers. Thus not acting with integrity and succumbing to the pressure from the top management

The code of conduct they violated was mainly Rule 101 of Independency which says that auditor should be independent of the auditee and not make decisions which compromise their professional judgements. They should not justify the acts of auditee in order to keep them happy and retain them as client.  

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional...
One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct is for an auditor to remain independent. However, the auditor is paid by the client to preform an auditor of their financial information. Do you think the fact that the client pays the auditor for this service is a violation of the Professional Code of Conduct, why or why not?
7. Following the American Institute of Certified Public Accountants (AICPA) code of professional conduct A is...
7. Following the American Institute of Certified Public Accountants (AICPA) code of professional conduct A is required only by members of the AICPA. B is voluntary by members and nonmembers. C is required only in situations that do not jeopardize personal interest. D mandatory for all CPAs.
The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent...
The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent of their audit clients both in fact and in appearance. What does this mean? How does the auditor “know” that he/she is independent? How does he/she prove that he/she is independent? If you are an auditor can you accept a deep discount that is normally offered to customers from your audit client? Why or why not?
The situations that follow pertain to Rule 101 of the AICPA Code of Professional Conduct as...
The situations that follow pertain to Rule 101 of the AICPA Code of Professional Conduct as it relates to family relationships. Indicate whether each situation violates the Code and which provisions apply. (a)A staff accountant’s mother retired from her position as controller for an audit client. Upon retirement, she was awarded shares of stock, which increased her ownership share to 5%, Her stock ownership is material to her net worth. The staff accountant participates as a member of this client...
1.Which of the following would be considered a violation of the professional code of conduct related...
1.Which of the following would be considered a violation of the professional code of conduct related to independence? a) you review an attest client's internal controls b) you terminated the controlled of an asset client's company c) you were an employee of an attest client's company 20 years ago d) your classmate in college is a director of an attest client's company 2 .Which of the following would be considered a violation of the professional code of conduct related to...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT