Chujun Ying
MGT 132 (2015 Fall)
Online Class Assignment for 10/13
1. What do you find both similar and different between AICPA Code of Professional Conduct and the CIMA Code, from the video?
Both the AICPA Code of Professional Conduct and the CIMA Code share some principles: integrity, objectivity, and due care. These principles provide an overall framework for the professionals, expressing auditors’ responsibilities. But AICPA Code of Professional Conduct especially stresses the auditors’ responsibilities are to the public, clients, and others auditors. Another difference between the two code professional behavior, as one of the five principles of CIMA Code, is addressed in AICPA Code of Professional Conduct in rule 501 – acts discreditable. Asides for those minor differences, both codes provide high ethical standards for auditors to follow.
2. The CIMA video on ethics warned the accountants can face problems such as pressure, threats, familiarity, self-interest and truing a blind eye. Find example of these behaviors in the …show more content…
Tucker and Noel’s Fairfield Greenwich Group first had pressure to success, so they were attracted in the unreasonable steady returns, doing no due diligence. Self-interest was also involved in creating the Fairfield Sentry fund to exclusively invest with Madoff, since Madoff did not charge the Group many fees. Customers were also threaten if they asked further questions. Regulators like SEC were unable to detect any fraud because they were paid to turn a blind eye and did not have the competence due to understaffed. Accountants like Konigsberg, falsifying accounts for their own self-interests, did not maintain their integrity and objectivity nor hold responsibilities to the public, clients, and the profession. All these unethical behaviors together make the Madoff scheme
MGT 132 (2015 Fall)
Online Class Assignment for 10/13
1. What do you find both similar and different between AICPA Code of Professional Conduct and the CIMA Code, from the video?
Both the AICPA Code of Professional Conduct and the CIMA Code share some principles: integrity, objectivity, and due care. These principles provide an overall framework for the professionals, expressing auditors’ responsibilities. But AICPA Code of Professional Conduct especially stresses the auditors’ responsibilities are to the public, clients, and others auditors. Another difference between the two code professional behavior, as one of the five principles of CIMA Code, is addressed in AICPA Code of Professional Conduct in rule 501 – acts discreditable. Asides for those minor differences, both codes provide high ethical standards for auditors to follow.
2. The CIMA video on ethics warned the accountants can face problems such as pressure, threats, familiarity, self-interest and truing a blind eye. Find example of these behaviors in the …show more content…
Tucker and Noel’s Fairfield Greenwich Group first had pressure to success, so they were attracted in the unreasonable steady returns, doing no due diligence. Self-interest was also involved in creating the Fairfield Sentry fund to exclusively invest with Madoff, since Madoff did not charge the Group many fees. Customers were also threaten if they asked further questions. Regulators like SEC were unable to detect any fraud because they were paid to turn a blind eye and did not have the competence due to understaffed. Accountants like Konigsberg, falsifying accounts for their own self-interests, did not maintain their integrity and objectivity nor hold responsibilities to the public, clients, and the profession. All these unethical behaviors together make the Madoff scheme