Question

Use the Internet or Strayer Library to research a publically traded company that received an unqualified audit report from external auditors and faced accusations of reporting false or misleading accounting information. Next, discuss the departures from generally accepted accounting principles (GAAP) that you have researched, and give your opinion as to whether or not the Public Company Accounting Oversight Board (PCAOB) should levy sanctions against the CPA firm for issuing the unqualified report. Identify the sanctions and section of the report the company should have modified to address departures from GAAP. Support your position.

Compare the code of professional conduct for CPAs to the code of professional conduct for accountants who are non-CPAs. Next, determine the major ethical issues created by the mergers of public accounting firms with non-CPA firms that perform accounting services. Explain your rationale.

Answer 1

The code of professional conduct provide both general standards and specific Enforceable rules of conduct for CPA's and non CPA's accountants. There are four parts to the code of professional conduct For CPA's principles, rules of conduct, ethical rules. Both CPA and non CPA accountants are also obligated to comply with certain fundamental principles . There are major ethical issue that arise from mergers of public accounting firms. The ethical issues do arise beacuse CPA's firms have higher obligations To discharge their duties professionally.