What is confidentiality in accounting?
An accountant must know who they can or cannot share a client’s information with. This section protects information such as payroll data and account history. The section on confidentiality is segmented into specific statements to ensure that the privacy of the client is protected.
What is professionalism accounting?
Professionalism in accounting involves adhering to national and international accounting standards, such as Generally Accepted Accounting Principles, or GAAP, in the United States and standards set by the International Accounting Standards Board, or IASB.
Which action is not considered an act discreditable to the accounting profession?
The accountant can get his fees from the client through banknotes. These are directly deposited by the client & collected by the bank on behalf of their customers. Hence, the mode of receiving the fee does not discredit the profession.
Why is confidentiality important for accountants?
Confidentiality. A great deal of information is provided to accountants that is personal and confidential to the client. Client confidentiality must always be respected, except where clear breaches of the law are involved. However, advice concerning potential abuse should be provided to the client in writing.
Why is privacy important in accounting?
It’s important that no confidential information is used directly by the accountant or indirectly by a third party for unethical or illegal purposes. Preventing such acts preserves the trust between the client and the accountant.
What is a discreditable act?
The board defines an act discreditable as any act that reflects adversely on a licensed CPA’s fitness to engage in the practice of public accountancy.
What are the CPA values?
THE CPA AND STUDENT CODE ARE DERIVED FROM FIVE FUNDAMENTAL PRINCIPLES OF ETHICS
- Professional Behaviour.
- Integrity and Due Care.
- Objectivity.
- Professional Competence.
- Confidentiality.
Why is integrity important in accounting?
Honesty and integrity play vital roles in accounting because they allow investors to trust the information they receive about companies in which they invest. Honesty in accounting is the primary characteristic of the profession that allows financial decision -makers to make appropriate judgments.
Which of the following is least likely to be considered an act discreditable to the accounting profession quizlet?
Which of the following is least likely to be considered an act discreditable to the accounting profession? Refusing to provide the client with copies of working papers the client prepared for the auditor.
When can you depart from GAAP?
Under the AICPA’s Code of Professional Ethics under Rule 203 – Accounting Principles, a member must depart from GAAP if following it would lead to a material misstatement on the financial statements, or otherwise be misleading.