Question

What ethical dilemmas might practicing CPAs experience

Answer 1

The various Ethical dilemmas faced by Practicing CPA’s

1. CPA’s during their course of providing professional services may face situation in which their clients who are married when the assignment was initially taken up may go their separate ways . Each of the partners may have their own attorneys advising them on legal matters. CPA’s will be faced with a dilemma of whether they should continue offering services or not and that difficult decision should be based on the assessment of their risk advisor and taking into account the conflict of interest aspect in order to avoid being blamed for favouritism.
2. CPA’s face a dilemma at the time of offering services to partnership firms as they may be accused of favouring and giving preferential services to partners having a major share in the profits of the business. CPA’s have to be careful so that they are not accused by the minority partner of colluding with the major partner for causing damage to their interest.
3. CPA’s may face a dilemma as to how much information to be disclosed or shared as regards a person with respect to whom he doesn’t have first hand knowledge or hasn’t been a party to whatever happened between that person and somebody else and therefore he should adopt a policy of diplomacy and refrain from disclosing any information and skilfully and diplomatically not engage professionally with them in order to avoid any liability.