Chapter 1-4
According to this principle, certain duties and corresponding rights apply globally to all people, in all situations.
What is the universality principle?
An accountant learns from a client that an unannounced merger is coming, then buys the client’s stock before the news goes public. This illegal act is known by this two-word term.
What is insider trading?
An accountant who doesn’t file this document with the IRS on time has committed a discreditable act.
What is a tax return?
Islamic countries apply the moral principle of riba, which prohibits the payment of interest altogether. In contrast, interest is charged for many things in the United States, like loans, credit card payments, and mortgages. The difference in belief across cultures demonstrates this ethical view.
What is ethical relativism?
A presidential candidate lies about being a lawyer. A man lies to his waiter at a restaurant about being a lawyer. The greater likelihood of harm from the first situation demonstrates this element of the issue contingent model.
What is probability of effect?
This type of sexual harassment occurs when someone uses coercion to gain sexual favors in return for a work-related benefit, such as a promotion or raise.
What is quid pro quo harassment?
This principle of the Code of Conduct requires a member to observe technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member’s ability.
What is the due care principle?
To inflate revenue, two companies sell each other the same asset or service at nearly the same time, with no real economic substance, utilizing this common fraud technique.
What is a round trip transaction?
Documents reflecting an accountant’s own thought process and analysis, such as audit program designs and sampling results, are called this, and the accountant is not required to return them to the client.
What are working papers?