Exercise 2: The IFAC Code of Ethics prohibits professional accountants from engaging in marketing promotions that "bring the profession into disrepute." This prohibition encompasses "disparaging remarks... to the work of others."

a.Do you believe that such a provision should be part of a professional code of conduct?

b.The AICPA Code of Conduct does not have a similar provision. Can you think of reasons why such a provision is not in effect in the United States?

Exercise 21: A standard unqualified audit opinion states that financial statements "present fairly" a company's results "in accordance with generally accepted accounting principles." Does following GAAP necessarily "present fairly" a company's operating results? What should a company do if following GAAP does not "present fairly" its operating results?