An online article at AICPA Insights notes that “As CPAs, we are increasingly called upon to use our professional judgment in facing key auditing, tax and accounting concerns – especially as the profession moves from being rules-based to more principles-based. We gain our ability to apply professional judgment over time, through experience, training and an understanding of what a reasonable person would perceive as the right course of action under certain circumstances. We are informed by our upbringing, by the guidance of our mentors and colleagues, and during interactions with our employers and clients. At some point during our careers our professional judgment is likely to be tested.”
The AICPA explores the issues in a new video, Ethical Conduct Is Never Out Of Vogue. The video demonstrates how practitioners in business and industry might be pressured into behaving unethically. Ana, a young accounting professional, is asked to record revenue from a large sale that hasn’t gone through yet in order to boost year-end figures. Although she’s assured by everyone (including the CEO of the company) that the sale will go through, she questions the ethical implications of recording the revenue. The video walks through the steps that might be taken in a similar situation.” The AICPA Ethics Hotline handles dozens of inquires like this each year.
