ACC 645 Module Five Journal Guidelines and Rubric

Overview

Your accounting firm, ABC Accounting Services, has found that one of its senior accountants, John, has been providing services to a client while also having a personal financial stake in that client's business. While John has been a fixture of ABC Accounting Services for many years, specializing in regulatory compliance and risk management, his close personal and private business relationship with this client almost certainly indicates a problematic conflict of interest. This raises concerns about a potential AICPA ethics violation that could pose a serious risk for the client and the firm.

This assignment will support the skill of differentiating between and applying AICPA rules and violations.

Directions

Create a journal that explains the AICPA rules for professional conduct related to this conflict of interest and explores the significance of the rules and their consequences.

Specifically, you must address the following rubric criteria:

1. Summarize the key components of the AICPA rules relevant to conflicts of interest. (Provide details for each key component)
2. Describe the specific AICPA rule violations in this scenario. Include the following in your response:
   1. Potential consequences for the client. (At least 3-5 consequences and Provide details of the potential consequences and provide details based on the scenario)
   2. Potential consequences for the firm. (At least 3-5 consequences andProvide details of the potential consequences and provide details based on the scenario)
3. Explain the importance of adhering to ethical standards set by AICPA rules. (At least 3-5 importance and Provide a detailed explanation for each importance)