Code of Ethics prohibits professional accountants from

Code of Ethics prohibits professional accountants from

Subject: Business    / General Business
Question

chapter 8:

>

> * Homework: Ch08: Exercises 2, 4, & 5

>

> 2. The IFAC Code of Ethics prohibits professional accountants from

> engaging in marketing pro- motions that “bring the profession into

> disre- pute.” 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

>

> 4. In a landmark U.S. Supreme Court case, Price Waterhouse, CPAs v.

> Hopkins, a senior accountant was denied a promotion to partner at a

> major CPA firm because, according to one evaluation, she needed to

> “walk more femininely, talk more femininely, dress more femininely,

> wear make-up, have her hair styled, and wear jewelry.” Others

> expressed more general criticisms that she was rude, impatient, and

> excessively demanding. When Ms. Hopkins sued under Title VII of the

> Civil Rights Act of 1964, the CPA firm defended its actions, claim-

> ing that Ms. Hopkins’s overly aggressive personality gave it

> sufficient grounds for denying her a promo- tion. Did the CPA firm

> commit sex discrimination?

>

> 5.5. To gain an advantage over its rivals, Rushtalent, Inc., a local

> corporation, interviews candidates for its accounting department as

> early as possible in the campus recruiting process. Once it has

> identi- fied suitable candidates, it makes them generous job offers

> that expire two weeks after the date on which these offers are made.

> The company is “infamous” on campus for never extending the

> deadline on these offers. As a result, students have to make employ-

> ment decisions with this company before they have had a chance to

> interview with, and possibly receive offers from, other recruiters.

> The head of Rushtal- ent, Inc.’s accounting department formulated

> this job offer policy, and she is a member of the AICPA. Is she

> committing a discreditable act?