Los pasos en la resolución de dilemas éticos

Chapter 3 Ethics

Steps in Resolving an Ethical Dilemma

• Identify the problem

• Identify possible courses of action

• Identify any constraints relating to the decision

• Analyze the likely effects of the possible courses of action

• Select the best course of action

Need for Professional Ethics

• Responsibility to serve the public

CPA is representative of the public

• Complex body of knowledge

Abundance of authoritative pronouncements

• Standards of Admission to the Profession

Min. standards for education and experience

• Need for public confidence

CPA product is credibility

AICPA Code of Professional Conduct

Designed to provide a framework for expanding professional services and responding to changes in the profession

Has Two sections

– Principles

– Rules

• Additional guidance

– Interpretations

– Ethics Rulings

Principles of the Code

• Responsibilities

• The Public Interest

• Integrity

• Objectivity and Independence

• Due Care

• Scope and Nature of Services

The Rules of the AICPA Code of Professional Conduct

101 Independence

102 Integrity and Objectivity

201 General Standards

202 Compliance with Standards

203 Accounting Principles

301 Confidential Client Information

302 Contingent Fees

501 Acts Discreditable

502 Advertising and Other Forms of Solicitation

503 Commissions and Referral Fees

505 Form of Organization and Name

Independence

• Independence of mind (actual independence)

• Independence of appearance Both are required. 

Threats to Independence (and an example of each)

• CPA financial and other personal matters

Financial Self-Interest of CPA—CPA owns stock in the client

Adverse Interest— Litigation between client and CPA firm

Undue Influence--Pressure from client to reduce audit procedures

• Interests of relatives and friends

Familiarity—Spouse holds a key position with client

• CPA Performance of nonattest services

Self-Review—CPA firm has provided consulting services that relate to audit

Advocacy of client—CPA promotes client securities as part of an initial public offering

Management Participation—CPA Serves as officer of client

Independence Safeguards

• Created by profession, legislation or regulation (e.g., education requirements)

• Implemented by attest client (e.g., effective board of director oversight)

• Put in place by CPA firm (e.g., stressing importance of independence)

Covered Members

Interpretation 1 of Rule 101 is particularly important for understanding independence. It relies in part on the concept of a “covered member.”

Covered Members include

• Staff working on the attest engagement

• An individual who may influence the attest engagement

• A partner in the office in which the partner in charge of the attest engagement primarily practices

• Partners or managers that provide a specified amount of nonattest services to client

• The public accounting firm and its employee benefit plan

• Any entity controlled by one or more of the above

Interpretation 101-1 States That

Independence is Impaired if a Member:

Section Applies to:

A. Has direct or material indirect financial business investment applies to interest, loan, or joint- Covered Members

ment;

B. Owns 5% or more of client’s outstanding All Partners and equity or other ownership interest Professional Staff

C. Simultaneously associated with client as All Partners and director, officer, employee, etc. Professional Staff

Consulting Services Prohibited by the Sarbanes-Oxley Act of 2002

• Bookkeeping

• Financial systems design and Implementation

• Appraisal or valuation services

• Actuarial services

• Internal audit outsourcing

• Management functions or human resource services

• Investment services

• Legal services and expert services

• Certain tax services

Rule 102 – Integrity and Objectivity

– Applies to all members of the AICPA and to all services provided by CPAs

– Violations

• Makes, or permits or directs another to make, materially incorrect entries in a client’s financial statements or records

• Fails to correct financial statements that are materially false or misleading when member has such authority

• Signs, or permits or directs another to sign, a document containing materially false and misleading information

Rule 201 – General Standards

– Apply to all CPA services

Member shall comply with following standards:

• Professional competence

• Due Professional Care

• Planning and Supervision

• Sufficient Relevant Data

Rule 202 Standards

Technical Body

• Auditing Standards Board (ASB)

• Management Consulting Services Executive

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