Accounting Articles > Ethics:

Ethical responsibilities and duties of accountants and CPAs to the public interest

We are the watchdogs that maintain the veracity of the entire financial system of America.

Whenever there has been a major nightmare in our financial system, it generally occurred because some CPA or Public Accountant didn’t do their job. The job is the fair and unbiased reporting of financial results to the general public and various taxation authorities.

Let us also remember that the world of taxation is vastly different from the public accounting world of audits and reviews. In the true public accounting world, we have GAAP, or Generally Accepted Accounting Principles, which tell us what is income versus what is an expense. But the world of taxation is completely different. The IRS tells us that EVERYTHING is income, unless they specifically say that it isn’t, and NOTHING is deductible, unless they specifically say that it is.

We have a responsibility to protect our clients. We do that by making sure that they are in compliance with the various Federal, State, and Municipal Laws. We need to know the laws and rules so well that we can utilize the laws in the favor of our clients while still protecting them.

The only thing that sets us apart from one of our counterparts working in a corporation, is our independence. If a client asks us to do something that is wrong we have an ethical responsibility to be smart enough to protect the client and say no. We also must maintain the proper independence so that this can be accomplished.

If you in any way question the ethics of your accountant, then you should change professionals immediately. Unethical accountants always get caught. If the IRS audits one of the returns that accountant completed and finds that the they aided in the perpetuation of a fraud, the IRS will audit their entire practice– knowing that if the accountant did it once, they were probably consistent doing it. This is why we are required to sign all of the returns that we complete. You have no idea how dangerous it is to stay with an accountant that has questionable ethics.

Ethics fraud in Accounting and Taxation is the easiest way for you to end up overpaying on your taxes. If you are with an accountant that has questionable ethics, sooner or later the IRS will find them. At which point they will probably audit your return, when they are auditing everyone else’s. If they look at one year and find enough to satisfy them, they will open up several more years. Think about what that would cost you in additional tax, interest, penalty, and professional fees for representation. Its just not worth it.

Find an accountant that provides the ethical representation and independence necessary to protect you, your family, and your business. Call today.