In your responses, discuss actions and consequences that should be taken in response to a violation of their selected principle. Use the following questions to help guide your responses:

What actions or strategies could you or others take to remediate the ethical issues?

What are some repercussions of not abiding by your peer's selected principle from a legal, business, or general professional perspective?

Please respond to the post below, answering the questions above

Hello,

I feel all the principles of the AICPA code go hand in hand with each other and are equally important, however, being a responsible accounting professional is of utmost importance. I also believe the six principles of the AICPA conduct code should not be limited to members of the AICPA and all accountants and people with financial responsibilities should be held accountable to these high standards.

I once worked for a financial manager who was a CPA in the private sector and made all the financial decisions. His position was valuable to the owner as he was trusted with the profitability of the company and his decisions were vital to the success of the company. It was his authority to decide the information that was conveyed to the owner. I was witness to various financial details that were not shared with the owner. As such, the owner was not made aware of the full accounting situation. The financial manager made several decisions not conveyed to the owner one of which I witnessed was the non-payment of payroll deductions withheld from employee paychecks but not paid to the proper vendor. This decision was irresponsible.

Unfortunately, after some time had passed, the company filed for bankruptcy. I do feel the owner was knowledgeable of the poor financial situation to some extent, however, not to the depth he should have been, and not too many of the decisions were made without his knowledge. Many different decisions should have been made earlier on, as well as better informing the owner so the financial statements and position could have been reviewed for financial stability. I believe the financial manager in this case was irresponsible in his decision-making.