Question

1. Explain Ethical standards of public vs. private accountants. Then explain the following dilemma:

At the completion of a financial statement analysis, a government official was told the analysis resulted in highly irregular and suspicious ratios and trends. What unique ethical issues would the government official face, that a corporate officer would not?

Answer 1

first start with meaning of Private & Public Accountant

Private Accountant means accountant who provide accounting services exclusively to one client. he may be employee or operate as independent accountant.

Public Accountant means Accountant who provide audit, tax, Adivsory and other Consultancies services like big 4( EY, Deloitte, KPMG etc). they deals with variety of Client unlike Private Accountants.

Ethical Standards are set of standard which ensure that accountants should act honesty, integrity, avoid the conflict of interest in personal & professional relationships.

Ethical Standards for Public Accountant, while doing audit, giving adivsory service & other consultancies should maintain the Ingerity, Comply with all applicable standards on Audits, regulation , etc.

Ethical standard for Private Accountant, they should work with honesty for his employer. they should not cheat him for sake of some additional Money.