Acc 557 Essay

1134 Words Aug 26th, 2013 5 Pages
Assignment 1: Review of Accounting Ethics
Kelvin Darden
Strayer University
ACC 557
Darren Tennyuk
May 5, 2013
Assignment 1: Review of Accounting Ethics

The New Zealand Institute of Chartered Accounts (NZICA) represents over 33,000 members in New Zealand and overseas. The organization audits private companies and public companies that are members of the organization (Graham, 1960). In October 2012, the organization was found to be practicing breaches of accounting with its members when an employee of the organization was found investing in different companies using client’s money. The loans were supposed to be short-term loans but it turned out they were not, this was discovered after complaints from clients.
1. Given the
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The NZICA is the largest professional accounting body representing interests of over 28,000 members in its profession in accounting and auditing firms. The organization has a set code of ethics that recognizes that the objectives of the accountancy profession are to work to the highest standards of professionalism, to attain the highest levels of performance and generally to meet the public interest. The code establishes minimum acceptable standards of professional conduct for members and focuses on essential matters of principle and is not to be taken as a definitive statement on all matters. The business community of New Zealand depends on accountants from the organization to perform their jobs with the highest degree of accuracy and professionalism and ethical accuracy. The stability of free market in New Zealand depends in large part on unimpeachably exact audits and statements (Graham, 1960).
3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. In this case, the organization’s employees took advantage and started practicing breaches of ethics to the organization’s most esteemed clients who had total trust for the organization. Most employees embezzled client’s money and invested in other companies without the client’s knowledge. Russell Ibbotson, an

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