Code of Professional Conduct Flashcards
Sally had her own small accounting firm. Due to some personal connections with a top officer of Ginormous Corporation, Sally was able to land Ginormous as a tax client. Unfortunately, Ginormous had very complicated international tax issues that Sally and her employees were unfamiliar with. Furthermore, Sally simply did not have enough employees to handle the job. Sally worked as hard as she could, but was unable to complete the job on time or accurately. Which of the following professional standards did Sally likely breach?
A. She did not act with professional competence.
B. She did not act with due professional care.
C. She did not plan and supervise the engagement adequately.
D. All three choices provided.
D. All three choices provided.
Sally messed up on all three counts, so this is the best answer.
Which of the following is true regarding the Principles of Professional Conduct?
A. To live up to the Code of Professional Conduct, members may have to work hard, but they do not have to sacrifice their own best interests.
B. Members must not only be competent in the provision of professional services; they must also cooperate with other members to improve the art of accounting.
C. Due care in the audit area is satisfied if a member knows generally accepted accounting principles and generally accepted accounting standards inside and out.
D. Because the Code of Professional Conduct does not expressly prohibit a member from moonlighting as a circus trapese performer, a member could perform at a local bar as “Sam the Flying CPA.”
B. Members must not only be competent in the provision of professional services; they must also cooperate with other members to improve the art of accounting.
The code requires members to cooperate with each other to improve the art of accounting (and to maintain the public’s confidence in the profession, and to carry out the profession’s special responsibilities).
