The Role of The Professional Accountant (Cases)

 

Societal Concerns
 
Joan and Miguel argued about how they would respond if anyone ask them whether the accounting profession should speak out about the shortcomings in financial statements. Miguel said he is going to stick around with the traditional role of accountants while Joan, she’s going to speak out on issues that she know something about that mean a lot for the future. 
If I refer to the book which explain about how the professional accountants should be, I think Joan is right. Because whatever the choice is like, the accounting profession should make that choice so as to preserve the trust inherent in the fiduciary relationships: first with the public, then with the profession, then with the client/employer, and finally with the individual professional. The first place of all is the public. It is ethical values that will compel the professional to recognize and disclose the fact. Without ethical values, the trust necessary for a fiduciary relationship can’t be sustained, and the right allowed the accounting profession will be limited, probably reducing the effectiveness an independent profession can bring to society. (Based on page 57 and 59 – The Role of The Professional Accountants)
 
Management Choice
  • Who are stakeholders involved in this decisions?
Anne Distagne as the CEO of Linkage Construction Inc. and Sue Fault as the Chief Financial Officer (CFO).
  • What are the ethical issues involved?
Bringing their profit down, declaring that some of their construction jobs are not as far along as they originally thought so they’ll include a lower percentage of expected profits on each job in their profit, pretending like they are off their well-managed path and saving their current profit for the next year.
  • What should Sue do? 
Sue is facing such a difficult choice. He has to keep his job and so his credibility as a professional. Sue has to disclose the fact and behaves like the professional should be. Because if Sue wants to be a professional accountant, he must be prepared to act with integrity always, not just sometimes. Loyalty, is owed first to the public interest and then to the accounting profession through the observance of the principles articulated in its code of conduct and its standards.(Based on page 58 – The Role of The Professional Accountants)
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