Would it ever be beneficial for an accountant to include ethical standards in a contract? Explain. How about in an information technology system? Explain.© BrainMass Inc. brainmass.com October 17, 2018, 4:36 am ad1c9bdddf
It is very beneficial for an accountant to include ethical standards in a contract, and many large companies always include what they call an "ethical conduct clause." The main problem is that when an accounting service is contracted for specific purposes, management of the client company often has ulterior motives that are not known to the accounting firm. This is particularly true in cases where the client company is a new company, and the accounting firm is unfamiliar with the client company, including their management team, internal environment, and the way that their company functions.
Because we're dealing with financial accounting, and because we are dealing with what could be ulterior motives, the accounting firm would include an ethical standards clause in the contract to protect the rights of the accounting firm. Basically, the clause ...
The solution provides a detailed discussion determining if it would ever be beneficial for an accountant to include ethical standards in a contract or in an information technology system.
adhere to AICPA ethical standards
Do you think it would be sufficient to include a statement that you will adhere to AICPA ethical standards or actually spell out those standards? What are the pros and cons of each approach?View Full Posting Details