Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Join the discussion by responding to below question, pose your own analysis of the week's topic, or share experiences related to the week's topic. Rather

image text in transcribed

Join the discussion by responding to below question, pose your own analysis of the week's topic, or share experiences related to the week's topic. Rather than simply answering the question, add your own ideas, introduce new referenced literature (e.g. APA), and build on issues raised within the discussion. Provide a substantial response to at least two of your peers' postings, if more than three students are enrolled in the course. (An initial post is required within the first 3 days of the week). Juan Gomez was the fastest-rising star of a small CPA firm in West Palm Beach, Florida. Most of his clients traveled in stratospheric circles of wealth, and Juan knew that fitting in with this crowd was essential to his career. Although he made good money, it wasn't enough to live that kind of lifestyle. Meanwhile, Juan had become friends with one of his clients, Tony Russo. Knowing Russo's books inside and out and being on close terms with him, Juan asked Tony for a personal loan. Juan was sure he'd be able to pay it back when he got his next bonus, but things stretched out, and additional loans were made. Two years later, Tony's company hit some losses, and the numbers were looking grim. Tony reminded Juan that it would not look good for his career if his CPA firm knew Juan had borrowed from a client, and so Juan changed a few numbers and signed off on clean financials for Tony's firm. This went on for three years, until one morning when Juan got a call. Russo had died; his sons had gone through the books, and the whole scheme came out. Juan did some prison time and lost his license, but he was repentant and made an instructional video for accounting students to warn them of the temptations they may encounter in the real world of business. Requirements 1.Although the central character of this story worked in public accounting, please refer to the IMA Statement of Ethical Professional Practice in Exhibit 18-4 and discuss which of those issues are reflected in this case. 2.Could Juan have removed himself from his situation? How

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Labor Economics

Authors: Campbell McConnell, Stanley Brue, David Macpherson

9th Edition

0073375950, 9780073375953

More Books

Students also viewed these Accounting questions

Question

What information remains to be obtained?

Answered: 1 week ago

Question

How reliable is this existing information?

Answered: 1 week ago

Question

How appropriate would it be to conduct additional research?

Answered: 1 week ago