Comparing The AICPA Code Of Ethics And Professional Conduct

We as accountants have an ethical obligation under the AICPA Code that require us to place the public interest ahead of all other interest, including our own self-interest and that of our employer or client. We must be independent, make decisions objectively, exercise due care in the performance of professional services, and must act with integrity. The standards of the Institute of Management Accountants (IMA) are similar to the Professional Conduct in the AICPA Code. Furthermore, the principles of the AICPA Code include responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of service. The IMA provides guidance on issues relating to competence, confidentiality, integrity, and credibility. The Resolution of Ethical Conflict section in the IMA defines the steps to be taken by members, such as discussing matters of concern with the highest levels of the organization, including the audit committee when they are pressured to go along with financial statement improprieties. In addition, the IMA runs an ethics hotline service to provide support to its members to act ethically at all times.

CEO has set the target profit for each division and the divisional managers are allowed to do anything to attain the target profit for their divisions. Thus, a warehouse clerk from the Cellular Telephone Technologies Division ordered $350,000 of cellular telephone parts and the purchase department has accepted the goods. Moreover, since the goods were accepted, the supplier won't accept the return of those goods. Mr. Richart the vice president in charge of the Cellular Telephone Technologies Division asked the accounting department to delay recognition of the delivery until the bill is paid in