Question

Assume you are a CPA and during a review of your clients' tax papers for completion of the client’s tax return, you discover certain deposits to your client’s accounts that you suspect may be additional income which your client did not advise you about. When you ask the client about the deposits they say “let’s just make that our secret.” What are your ethical obligations in this situation and what authority did you use to determine your obligation?

Answer 1

CERTIFIED PUBLIC ACCOUNTANT:

As a CPA i wont allow this one to make in tax return. this is unethical so surely i wont allow to make any illegal activities in h tax filling . So i would tell that"bring the copy/colletral evidence of that income and i have to add it on the statement" orelse ican also find another wy to punish him for this for forgery.

AUTHORITY OF CPA

CPAs in government have responsibilities in the area of auditing,financial reporting and management accounting. They have the power to work with the policies which are made at various levelsof government. CPAs provide the information as in how the finance can be used in the best possible manner

Ethical conflicts:

An ethical arises when a member encounters one or both of the following:

1. obstacles to following an appropriate course of action due to internal or external pressures
2. Conflicts in applying relevant professional standards or legal standards

ONCE AN ETHICAL CONFLICTIS ENCOUNTERED , A MEMBER NEED TO TAKE STEPS TO BEST ACHIEVE COMPLIANCE WITH THE RELUES AND IN WEIGHTING ALTERNATIVE COURSES OF ACTION, THE MEMBER SHOULD CONSIDER FACTORS SUCH AS THE FOLLOWING:

1. Relevant factsand circumstances, include applicable rules, laws or regulations
2. Ethical issues involved
3. Estabished internal procedure

THE MEMBER SHOULD ALSO BE PREPARED TO JUSTIFY ANY DEPARTURES THAT THE MEMBER BELIEVES WERE APPROPRIATE IN APPLYING THE RELEVAN RULES AND LAWS. IF THE MEMBER WAS UNABLE TO RESOLVE THE CONFLICTS IN A WAY THAT PERMITTED COMPLIANCES WITH THE APPLICABE RULES AND LAWS, THE MEMBER MAY HAVE TO ADDRESS TE CONSEQUENCES OF ANY VIOLATIONS