Question

EC2-1 (book/static) For each of the situations listed, identify which of three principles integrity, objectivity and independence, or due care) from the AICPA Code of Professional Conc of the AICPA Principle Integrity Situation Jackie recently received a promotion and is required to do more complex journal entries than in her previous position. Since Jackie is embarrassed that she does not know how to do the journal entries, she does not attend a training session at her company. She figures that she can figure it out on her own; after all, the company promoted her. Tim is in charge of entering accounts receivable journal entries. Tim is notorious for transposing the numbers in his journal entries, so his supervisor requires him to review his work at the end of each day. Tim is annoyed by this policy and leaves work b. without reviewing his journal entries. Troy, the managing partner of a CPA firm, received two tickets to the upcoming Alabama versus Ohio State football game from an accounting software vendor. The CPA firm is currently conducting an audit of that accounting software vendor. These football tickets sell for over $500 each. Paige sets up a fake supplier account and then creates false invoices and bills her company for work done by this fictitious supplier. Once the check is cut for the fake d. supplier, Paige deposits it in her own bank account. Due care Objectivity and independence Due care

Answer 1

Solution:

1) Integrity

2) Due care

3) Objectivity and Independence

4) Due care

Explanation: The principle of integrity states that the accountants need to perform the task with a high sense of integrity and require them to observe both the spirit and the form of ethical and technical standards. The principle of due care is that members need to discharge professional responsibilities with diligence and competence. The principle of objectivity imposes an obligation on the accountant to be intellectually honest, impartial, and free of interest conflicts. Independence states to preclude any relationships that seem to impair an objectivity of a member in rendering services of attestation.

Answer 2

1. due care 

2. due care 

3. objectivity and independence 

4. integrity