Statements of Position

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Description

Rule 102--Integrity and Objectivity--provides that "a member shall not knowingly misrepresent facts." While the rule clearly applies to members who are found to have been directly involved in such misrepresentations, questions have been raised regarding the rule's application to mebmers who permit, or who direct others, including subordinates, to be involved in, what may be found to be misrepresentations of fact. The application of Rule 501--Acts Discreditable-- to a member who has been involved with the preparation of false and misleading financial statements has been unclear in the past. Such a member may state that he was unaware that false and misleading entries were included in the entity's financial records or statements and therefore should not be held responsible for such misleading entries. The committee has concluded that it is appropriate to put members on notice that they will be charged, if by virtue of their gross neglignece, they make or direct or permit another to make, false or misleadiang entries in financial records or statements.

ISBN

ed83-12-05t

Publication Date

1983

Relational Format

Book

Keywords

Financial statements -- Auditing -- Standards; Financial statements, Misleading

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1983, Dec. 5

Proposed interpretation of Rule 102, integrity and objectivity : proposed interpretation 102-1 : knowing misrepresentations in financial records and :Proposed interpretation of Rule 501, acts discreditable : proposed interpretation 501-4 : gross negligence in the preparation of financial statements or records;Proposed interpretation of Rule 501, acts discreditable : proposed interpretation 501-4 : gross negligence in the preparation of financial statements or records;Knowing misrepresentations in financial records;Gross negligence in the preparation of financial statements or records

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