Acct 402 Ethical Considerations and Regulatory Compliance in Financial and Political Practices: A Comprehensive Analysis

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Acct 402Ethical Considerations and Regulatory Compliance in Financial andPolitical Practices: A Comprehensive AnalysisFinal Examination Acct 402 Ethics1)The first entity is a CPA firm that has been cited for tax ethical violations. Indicate whatguidelines the firm will have to put in place to comply with ethical considerations as specifiedby the AICPA. Be sure to indicate how the firm will change into an ethical practice and obtainassurancethatthesedirectivesarebeingfollowed.Ans:It is very important that ethical practices are followed while going for financial reporting ofthe firm. While preparing forthe financial reporting of the company,it isthe CPA firms that help inpreparing the financial report for thecompanies and submit the report to the management of thecompany for onward submission to the governing bodies. Here we are discussing about the publiclyhelp companies whose stocks are listed in the stock exchange.The CPA firm should help thecompany in such a way that, the company has zero obligations to meet out after the financialreporting.It is minimum decorum which needsto be maintained by the company to run the businessfor an unlimited period and establishits existence in the society to do a successful business.Eachcompany should honor the tax payment which is due to the company and there should not be anydispute while making the tax payment to the tax authorities. Here in this case, it is mentioned that,theCPA firm was engaged in tax ethical violations. It means there are many possibilities in thisregard like the CPA firm has taken bribe and tried to present the financials in a different way where

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as per the calculations, there won’t be less tax due to the tax authorities, where as the actualcalculations result different taxamount,for which the company owes certain amount to the taxauthorities.This kind of wrong engagement by the CPA firms will mislead the company and thecompany may have closeitsdoors very soon.So it is very important that, the requisite steps aretaken up by the CPA firm for calculating the tax amount with proper guidance to the management ofthe company.Following are the some of the ethical standards which are need to be followed by the CPA firms whilegoing for executing their duty from time to time:As per the AICPA guidelines, the code of professional conduct of the American Institute of CertifiedPublic Accountants got to comply to two sections namely (i) The Principles and (ii) The Rules. Theprinciples laid offer a better platform for the Rules which monitor theperformance executedby theprofessional services of all the members. The American Institute of Certified Public Accountantscouncilsiscorelyauthorizedfordesignatingbodiesforcirculatingtechnicalstandardswithconsideration of Rules and bylaws are needed to stick to those Standards and Rules.The professionalConduct Code was adopted by the membership for providing rules and guidance for all the memberspracticing in the public, industry,government, and educationetc in theresponsibilitiesof professionalperformance.Complying with the Code of Professional Conduct with all kind of standards enacted fromtime to time, in a society which is open in nature basically is vested with primarily on the understandingof the members with actions voluntarily and secondly reinforcement by the public opinion and the peersand eventually disciplinary actions when required against all the members failing to comply with theRules.

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Interpretationof Rules of Conduct enables to interpret that has beenadopted afterhaving exposure to thestate societies, practice units,Boards at the state level etc along with other parties who are corelyinterested in the guidelines by the professional division’s of ethics offers guidelines in order tounderstand the scope and application of rules but are not purposefully limited to these scopes andapplications.A member who does not follow these guideline, need to proper clarifications of why thesekind of rules were not complied with anddeviated.Apart from the above, the CPAfirm needsto follow the concept ofResponsibilities, ThePublic Interest,Integrity, Objectivity & Interdependence, Due Care, Scope and Nature Of Service etc.So adoption ofabove aspects will change the firm into an ethicalpractice andobtain assurance that these directives arebeing followed.2)One of your clients has decided to run for U.S. Senate. She would like you to become a memberof her senior staff. Your assignment is to handle campaign contributions and be responsiblefor financial reporting to the Federal Election Campaign office. Indicate what filings need tobe done and when. Explain what the candidate’s staff should do to ensure compliance with theFederal Election Campaign Finance rules.Ans:As per the practices, the candidate running for the U.S.Senate elections, is eligible forcertaincontributions from outside, however the candidate running for becoming Senate, need to go for thefilingas per the guidelinesand inform the concerned authority as per the ruleregarding the fundsmobilized for his / her election campaignthrough different sources.The idea behind understandingthe funds movement for thecandidateis only to findout,all the funds that are getting used for theelection campaign are generated from the legal sourcesand thereare no such influential kind offunds which is comingthorough.Following are the list of forms that neededto befiled from time totime.Type OfPurpose For Which

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