Would it ever be beneficial for an accountant to include ethical standards in a contract? Explain. How about in an information technology system? Explain.
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.