Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 6

The accounting profession has been investigated by Congress over a number of years. However, none of the investigations or recommendations for change seems to have made a difference in that fraud cases continued into the early 2000s. Why do you think instances of accounting fraud continue to occur? Do you believe the trend will continue even after passage of the Sarbanes-Oxley Act? Why or why not?

Step 1 of 2

AICPA

AICPA stands for the American Institute of Certified Public Accountants. It is founded in 1887. AICPA is set up in the United States and it is the national professional organization of Certified Public Accountant.

Role of AICPA

1. It set a standard of ethics for the best practice for accounting.

2. Create guidelines with the new legislation.

3. In relation to accepted accounting practice (CPA) its monitors service quality.

AICPA is designed to resolve the issue related to the audit and preparation of an audit report by the CPA. The AICPA’s provide a higher professional manner benefits to the public, employers, and clients. There are more than 40,000 members in 128 countries in AICPA including government, industries, and international associates.

SEC:

SEC established securities rules and regulations for the accounting profession by sharing market information, and protection against fraud and accesses the investor to access the financial report and other securities form.