Ethical Decision Making Model - answer-helps you actively work through gray area and choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consi...
Ethical Decision Making Model - answer-helps you actively work through gray area and
choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome
Step 1 - answer-Recognize the ethical issue
Step 2 - answer-Gather the critical facts
-you may not have all the facts, but you need the key ones (material)
Step 3 - answer-Identify the stakeholders
-who is affected by your decisions/actions
-consider as many as possible
Step 4 - answer-Consider your alternatives
-approaches you could take to address this matter and resolve the ethical conflict
Step 5 - answer-Consider the effect on stakeholders
-effect of each alternative
Step 6 - answer-Consider your comfort level
-how comfortable are you with each option
-how would you feel if you have to discuss your decision in public
Step 7 - answer-Consider rules, regulations, and laws
-rules set by AICPA, state accountancy board, state CPA society
Step 8 - answer-Make a decision
, -take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty
Step 9 - answer-Document your efforts
-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision
Step 10 - answer-Evaluate the outcome
-would you have done anything differently
Professional & Regulatory Bodies - answer-set ethics standards and rules for members of
the accounting profession
State CPA Licensing Boards - answer-issues CPA licesnes and oversee ethical conduct of
jurisdiction
AICPA - answer-American Institute of Certified Public Accountants
national professional organization for all CPAs; work with state CPA societies
-PEEC: Professional Ethics Executive Committee promulgates and enforces ethics and
independence rules that apply to all members
SEC - answer-Securities and Exchange Commission
federal agency
establishes and enforces accounting and auditing policies
PCAOB - answer-Public Company Accounting Oversight Board
establishes auditing, attestation, quality control, ethics and independence standards for
public company auditors
IFAC - answer-International Federation of Accountants
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