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

Exercise 10

The managing partner of the CPA firm of Giants & Jets is approached by the CEO of a major client in the firm’s headquarters office in New York City. The CEO can’t use two tickets to the Super Bowl between the Indianapolis Colts and the New York Giants. The CEO knows the partner is a huge New York football fan and is looking forward to the Peyton Manning versus Eli Manning match-up. While both quarterbacks have won the Super Bowl in different years, the Manning brothers have never played against each other in the Super Bowl. In a gesture of gratitude for services rendered, the CEO offers the tickets to the partner. At first, the partner is excited about the prospects of going to the Super Bowl but also realizes there may be some ethical issues to be considered before deciding whether to accept the tickets. Assume the partner asks for your help. You are a CPA and a long-time friend of the partner. You hate football so will be objective in your advice. What are the ethical considerations you would point out to the partner to help in deciding whether to accept the Super Bowl tickets? Are there any circumstances for which you would advise the partner that it would be acceptable to go the game? Be sure to describe your feelings and personal integrity issues as well as ethics rules in the AICPA Code of Professional Conduct to support your advice in each question.

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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.