Business Ethics Case Study: Cubbies Cable

Cubbies Cable is a family owned regional company, it is not ethical for CPA to ‘horse trade’ when dealing with a client about the proper GAAP in the particular issue, which GAAP must adhered to a company distributes its financial statements, where a firm’s stock is publicly traded and it must be audited by an independent CPA firm. The CPA has to follow Code of Ethics and Standards of Professional Conduct, which set out professional and ethical standards with honesty, confidentiality, independence, integrity, objectivity, and responsibility (CFA 2015). The CPA can use materiality consideration to negotiate with clients about whether the auditor filtrates immaterial issues and other issue that must be corrected.