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Ethics in Business: Accounting Standards
Accounting Standards
Ethics in Business
Accounting Standards
The objective of this work is to address the relationship among the FASB, SEC, and PCAOB and to provide explanations of basic accounting theories, assumptions and principles; and finally to evaluate the role of ethics in accounting.
Victor, G. & Levitin, M. (2004) Current SEC and PCAOB Developments -- September 2004. The national conference of the AICPA in relation to recent SEC developments convened in Washington D.C. And boasted more than 2,000 attendees from "accounting firms, private industry, and government" while representatives from the SEC, Public Company Accounting Oversight Board (PCAOB), FASB International Accounting Standards Board (IASB) and AICPA shared their knowledge on various issues. Key was ethical standards among items on the agenda of the professional attending the meeting." (Victor and Levitin, 2004)
AICPA
AICPA SEC Practice Section (SECPS) effectively changed its name and is now known as the Center for Public Company Audit Firms effective January 1, 2004. The focus of the AICPA is the development of technical and educational information for SEC- and PCAOB- related development for members of the firm; Provision of a forum for discussion of issues impacting public company audits inclusive of comments on rulemaking proposals; and finally AICPA assumes the role of liaison to both...
[as well as] ... administrate ring the peer review program applicable to member firms' private company audit practices." (Victor & Levitin, 2004)
PCAOB
The PCAOB was created by the Sarbanes-Oxley Act and is a non-profit organization that oversees the auditors of public companies, from the perspective of the investor's best interest. Victor & Levitin (2004) state: "The PCAOB is also charged with promulgating audits and related attestation and ethics standards for audits and review of public companies." The PCAOB is a non-profit, private-sector organization. CPA firms that intend to audit publicly held companies are required to register with PCAOB and firms that possess more than 100 public company clients is subject to inspection on an annual basis while other firms undergo inspection only one time every three years. The PCAOB auditing standard identified the following 13 key provisions:
Evaluating management's assessment.
Obtaining an understanding of internal control over financial reporting, including performing walkthroughs.
Identifying significant accounts and relevant assertions.
Testing and evaluating the effectiveness of the design of controls.
Testing operating effectiveness.
Timing of testing.
Using the work of others.
Evaluating the results of testing.
Identifying significant…
Not only are accountants responsible in their professional judgments they also are under a requirement to follow "ever more prescriptive and detailed rules." (Pollock, 2005)
Summary & Conclusion
The new and differentiated types of technological applications that may be utilized in the accounting process leaves multiple methods open for use in accounting standards and practices. It is held by many experts reviewed in the process of reviewing the literature related to this work in writing that the many applications available have led to an entire new world in accounting. It appears that it is time to lay aside the hard-line regulations and rules and utilize that which is most effect, most expedient, most efficient and most ethically correct in choosing accounting standards in the contemporary and technologically advanced world.
This article does shed light on how the Duncan Donuts organization should look at to improve the ethical responsibility of accounting practices. Making accounting practices available to the public and shareholders can then ensure a more ethical reputation for the organization itself. Additionally, implementing peer established reviews will also help strengthen the ethical image of the Duncan Donuts brand and its affiliates. Accounting ethics is essential in financial decision making. It
Accounting Ethics Ethics of Accounting There have been breaches in the ethics of accounting in recent times. With that in mind, evaluate whether or not the current trend in the regulation of business establishments is favorable to ethical behavior. Supply supportive evidence to your answers (Jeter, 2003). The generally accepted principles of accounting and the standards of auditing in contemporary practice stipulate that the financial statements of any establishment should contain the following
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Ethics The CPA firm is under pressure to adapt to an ever-changing marketplace. The global environment affects not only large corporations, but smaller entities as well. Additionally, the customer(s) are constantly being wooed by the competition, lower prices, and online convenience that was not available only a few short years ago. In order to maintain and grow the firm, action must be taken to keep clientele from leaving, while enticing new