Share
Explore BrainMass

Ethical challenges: debtor-creditor relationships

What are some ethical challenges an accountant might have to deal with when presented with a client's documentation of debtor-creditor relationships?

Solution Preview

What are some ethical challenges an accountant might have to deal with when presented with a client's documentation of debtor-creditor relationships?

The question implies that the accountant is independent by the use of the term 'client' and that the accountant is preparing some type of financial reporting or financial statements for the client.

The most important ethical principle involved with accountants and auditors is that of independence. If an accountant is not independent with respect to a client, then the accountant is restricted from presenting opinions of client financial information. This includes financial statements whether audited or unaudited, and whether the engagement involves attestation or assurance. It can even extend to non-attest services such as monthly bookkeeping ...

Solution Summary

The 468 word cited solution provides a good response to the questions together with examples for better understanding.

$2.19