Question

Use the Ethical Reasoning Methods of egoism, enlightened egoism, act utilitarianism, rule utilitarianism, rights theory, justice, and virtue ethics discussed in Exhibit 1.3 in discussing each of the following questions regarding ethics expected of a CPA in the situations described.

1. A CPA preparing tax returns for a client should follow which of the ethical reasoning bases? Discuss why you chose this method and whether you think this is a good method for a tax preparer to follow.

Answer 1

Exhibit 1.3 states the ethical standards to be followed by CPA.A CPA is required to bring any concerns regarding the filing of returns to the knowledge of the higher officials or Audit committee as it might be required.

When a CPA is engaged in preparing tax returns he must ensure that there is no bias in any form that is involved in preparing tax return. An Auditor has to abide by the Rules enforced by the AICPA for both technical and ethical values.

Virtue ethics focuses on virtue of mind, character and mind.This means that the Auditor in addition to his professional knowledge and his expertise, he should have moral philosophy in addition to his duty or action to bring good consequences.

Hence when a tax preparer exhibits honesty, the return statement would exhibit true and fair position of the Firm. Hence a CPA must have the ethical reasoning of virtue ethics in his work performed.