Question

For each of the situations listed, identify which of three principles (integrity, objectivity and independence, or due care) from the AICPA Code of Professional Conduct is violated. Assume all persons listed in the situations are members of the AICPA. Situation Principle Jackie recently received a promotion and is required to do more complex journal ntries 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 any. She figures that she can figure it out on her own; after all, the company promoted her. im 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 his work at the end of each day. Tim is annoyed by this policy and leaves work without reviewing his journal entries. Troy, the managing partner of a CPA fim, 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 Il 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 supplier, Paige deposits it in her own bank account.

Answer 1

a) 1st Situation : Jack is embarrassed that she does not know how to do the journal entries and she does not attend the training in her company and she figures that she can figure it out in her own  . - Integrity

It is violation principle of Integrity: Perform professional responsibilities with the highest sense of integrity.

b) 2nd situation : 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 without reviewing his journal entries. It is violation of Due care principle.

Due care : observe technical and ethical standards, improve competence, and perform to the best of your ability.

c) 3rd Situation : Troy the meaning partner of CPA firm, received two tickets to the upcoming Alabama Vs Ohio football game from accounting software vendor . The CPA firm is currently conducting an audit of that accounting software vendor. The foot ball tickets sell for over $500 each.

This situation comes under Objectivity and Independence  . Accountant have to remain objective and can't get closure to clients. They must also remain independent of their clients with no conflict of interest.

d) 4th Situation : Paige sets up a fake suppliers account then creates false invoice and biller her company for work done by this fictitious supplier. Once the checks is cut for the fake supplier. Paige deposits it in her own bank account.   

This situation Cleary shows violation of Integrity and due care principles.