Richard T De George | Ethical Issues for Accountants

question 59

Multiple Choice

Richard T. De George | Ethical Issues for Accountants
In this reading, De George looks at the inherent conflicts of interest built into the US system in which accounting firms work for and are paid by the companies that hire them. Because of the rule of confidentiality, accountants may find themselves caught between loyalty to their clients and ethical obligations to the public at large. De George suggests a tightening of the guidelines for accountants presented in their professional codes.
-Accountants are in an ethically ambiguous position because they must

• A) the confidentiality of their clients.
• B) protect the public interest.
• C) complete company audits.
• D) both a and b

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Definitions:

Trademarks

A legal designation of exclusive use of a brand or product name, protecting it from use by others.

Books

Physical or digital records that keep track of financial transactions and accounts for a person or organization.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Apartment Building

A multi-unit residential building where each unit is occupied by different tenants for dwelling purposes.