Question

Jonathan is the payroll accountant for Terrafirm Company. The company has experienced a rise in business that has increased Jonathan's workload to more than double his original amount. Because of the business increase, he has not been able to engage in the continuing professional education (CPE) that his payroll certification requires. When asked by his employer, Jonathan claims to be current with his CPE. According to the AICPA Code of Ethics, which of the following most closely describes the principle that Jonathan has violated?

Answer 1

ANSWER:-Most closely describes the principle that Jonathan has violated is the DUE CARE.

EXPLANATION:- Due care is the degree of care that an ordinary and reasonable person would normally exercise, and is applied as a test of liability for negligence.A person exercising due care should always be concerned with the best interests of clients, consistent with the responsibility of the profession to the public at large.

The accountant should be sufficiently aware of his or her own competence to understand when it is necessary to refer work to other professionals who have a higher degree of competence in certain areas of an engagement.