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Week 1 – DQ 1.
What ethical dilemmas might CPAs experience? Explain what ethical responsibility a CPA might neglect. (Ch. 17 of Financial Accounting Theory and Analysis) According to our text, there are five ethical dilemmas that accountants can experience: ❖ Independence: the accountant must be separate from the company ❖ Scope of Services: the accountant/auditor should not provide services that is not required by an accountant/auditor (consulting, tax return preparation, tax advice) ❖ Confidentiality: the auditor/accountant must maintain confidentiality, even though they are the “watchdog” ❖ Practice development: any advertisement must be accurate ❖ Differences on accounting issues: the accountant/auditor and the company not agreeing on policies and procedures that are preformed by the company (Schroeder, 2005).

There are six steps that can assist accountants/auditors in resolving any ethical dilemmas: 1. Obtain the relevant facts.
2. Identify the ethical issues.
3. Determine the individuals or groups affected by the dilemma. 4. Identify the possible alternative solutions.
5. Determine how the individuals or groups are affected by the alternative solutions. 6. Decide on the appropriate action.
(Schroeder, 2005).
I work as a credit manager at a retail furniture store, and I know from experience with our auditor the five ethical dilemmas can be difficult to do however, in order to provide accounting/auditor services that are ethical is it vital to remember the five dilemmas and how to reduce unethical behavior. I have had our auditor many times tell me our policies and procedures need to change even though we are keeping with the companies rules. In order to decrease dilemmas it is vital for the accountant/auditor to establish any “threats”. There are six threats accountants/auditors can face: self-review threat, advocacy threat, adverse interest threat, familiarity threat, undue influence threat, and...
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