Expense? Mr. Blowhard's Scheme Significantly Term Paper

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Blowhard. However, the accountant has a responsibility to the law of the United States, to the ethical standards of the accounting profession, and to the present and future investors and shareholders of the company to create an accurate perception of the company's value. According to accounting standards, a professional accountant in public practice should observe the principles of the Code of Professional Conduct in determining the scope and nature of services to be provided, services are not to be dictated by the needs and the whims of the client alone.

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Of the AICPA standards that were violated, Articles 1-3 were clearly not met. The caveats of Article 1 about showing sensitive professional and moral judgment, Article 2 about acting to serve the public interest, and Article 3 about maintaining integrity to keep public confidence, were all ignored. When the fraud is exposed when investors and shareholders see that they made personal financial decisions with inaccurate information, and the company is investigated for tax fraud, the sense of public outrage….....

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