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AICPA Code of Professional Conduct does work; GAAP structure

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In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern?

How is the hierarchy of GAAP structured? Are there any higher sources than GAAP?

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Solution Summary

In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern?

Alexander L. Gabbin and Robert C. Richardson say in "Professional Responsibility and the Fate of Whistleblowers" (April 2006, The CPA Journal Online), "If CPA employees follow interpretation 102-4...

For financial statements of federal governmental entities, the GAAP hierarchy is...

..."few people will [consult legal counsel before] talking to their manager. However, they need guidance before they speak with their manager, because the first step in the AICPA process (communicating with management) is treacherous if management is involved in wrongdoing" (2006, Para. 7).

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In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern?

Alexander L. Gabbin and Robert C. Richardson say in "Professional Responsibility and the Fate of Whistleblowers" (April 2006, The CPA Journal Online), "If CPA employees follow interpretation 102-4, there is a significant possibility that they will be labeled snitches for doing their jobs and will suffer as an employee" (2006, Para. 1). However, the ramifications of silence are that CPAs go against their good conscience as well as the ethical standards of the entire accounting profession.

While the Enron case is ...

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