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Influence of Professional Codes of Conduct and Standards - Class Activity
1. The accounting profession has been investigated by Congress over a number of years. However, none of the investigations or recommendations for change seems to have made a difference in that fraud cases continued into the early 2000s. Why do you think instances of accountants going along with fraud continue to occur? Do you believe the trend will continue despite the passage of SOX? Why or why not?
2. Have you ever agreed to do something when you weren't sure that you had the skills to accomplish the job? Why did you agree to do it? Can you draw an analogy between your motivations and the ethical responsibilities of CPAs in the performance of professional services?
3. It has been said that ethical people try to observe both the form and spirit of ethical standards in making professional judgments. What does this mean? How does this relate to the "realistic possibility" and "good-faith belief" standards in tax practice?
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