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Accounting Ethics & Regulations

Discuss the following issues. You should use the materials we discussed in this course to support your arguments. In particular, you should use the concepts and arguments used in the extra reading “Pacioli” to discuss the issues. Also look at the pages 5-7 of the AICPA Code of Professional Conduct and the SEC Filing Requirements. All documents will be attached. Profit is a key measure of firm performance. Recently investors in the capital markets depend on firm’s EPS figures to evaluate firm’s profitability. In the article of “Pacioli”, he suggested that profit should be pursued in honest and lawful ways. In addition, he discussed about “reasonable profit”. What is the implied meaning of “reasonable profit”? Do you think whether the financial statement can show the reasonableness of profit? If yes, how? If no, why not?

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