Question 1

Yes. CPAs ought to take the responsibility of serving as the moral conscience of their clients. Moral conscience can encompass both the deliberate slanting of information and intentional misrepresentation of facts. It is upon the CPAs to provide this form of conscience in case they notice that their client is about to indulge in something that is not legal according to the law. CPAs should take the initiative of explaining to the clients the consequences that are likely to accrue as a result of the improper actions that they are about to conduct. A professional accountant is expected to be honest and straightforward when examining his/her duties. There are times when a client will approach a CPA asking them to manipulate the books to make them present a “desirable” look. It is upon the relevant accountant to exercise professional integrity and discourage them from such acts. CPAs should always aim at presenting a true and fair account of how things are.

Question 2

Auditors have both a moral and professional responsibility of ensuring that their clients are not breaching the law by way of cheating on taxes and other illegal activities. The client confidentiality rule prohibits an auditor from disclosing any confidential information relating to the client without their consent. CPAs are expected to comply with this law. However, CPAs also have a professional and moral duty to protect the public from any form of misrepresentation that might be prevalent. This is to say that this duty transcends that of confidentiality with the client. As a result, auditors have the responsibility of reporting clients that are violating varied laws.

Question 3

I would not agree to become a controlled informant to the IRS. Doing so results to the breach of the confidentiality rule.

The parties likely to be affected by my decision are the client, IRS, family members and the profession.

Client- Refusing to be an informant would affect the client in that he/she would continue indulging with the current malpractices and by the time the IRS catches on, the applicable fines will be excessively high.

IRS- They will not have any insider information, and this will make their work more difficult hence spending more resources and time on the case.

Family members- the decision might bring some division of opinion in the family since there are monetary benefits that have been forgone in the process.

Profession- This helps in upholding the credibility of the profession by not breaching the client confidentiality rule.

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