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1. What is the role of a code of professional conduct and standards of ethical behavior for accountants and auditors?
2. Fully explain all reasonable steps that should be taken by an internal accountant when there is a difference of opinion with one's supervisor on an accounting or financial reporting manner.
3. Steve is quickly moving up in the accounting department of RAC Inc. It is yearend; he has just received news that the estimates of the estimated useful life and salvage values were wrong and must be changed. Of course, that changes the depreciation expense and accumulated depreciation. Steve calls his wife to explain why he will be late again. Now is he is pondering on a comment his wife made. She said "I'm no accountant; but after four years, you would think that the company could get done how its estimates affect expenses and those other accounts." What might the company be doing and what should Steve do from an ethical reasoning view?
4. A student states that as long as the auditor has followed all applicable laws, then the auditor has been ethical. Do you agree? Why or why not?
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