Accounting, Business and Ethics
Not what you're looking for?
Answer questions 4 and 5. Provide a hypothetical example to illustrate your answer to question 4. Explain your answers thoroughly.
4. When should an accountant place his or her duty to the public ahead of his or her duty to a client or employer?
5. Which would you choose as the key idea for ethical behavior in the accounting profession: "Protect the public interest" or "Protect the credibility of the profession." Why?
Purchase this Solution
Solution Summary
The solution describes when an accountant should put his or her professional duty ahead of his or her employer's interests. It is about 553 words.
Solution Preview
4. Because they are responsible for large sums of money and the potential impact upon society at large, accountants are expected to uphold relatively high ethical standards. Scandals such as Enron and Worldcom have shown exactly what the potential impact upon society can be from improper accounting methods and outright fraud.
The primary responsibility of a company is to maximize shareholder wealth so long as measures taken are legal, moral, and ethical. While it is true that accountants have a duty to their clients and/or employer, their primary goal is outlined in the first sentence. If an accountant is employed by a publicly held company, the shareholders' wealth is the primary concern. Since there may be millions of shareholders, the general public can be considered to be the shareholders. In ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Introduction to Finance
This quiz test introductory finance topics.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media