You are a new staff accountant in your first year of training within a small practice. An in-charge accountant with 2.5 years of experience has been ill and been home on sick leave. You are due to go on a short leave to study for the CPA exam. You have been told by your manager that, before you go on leave, you must complete some complicated reconciliation work, begun by the in-charge accountant. The deadline suggested appears unrealistic, given the complexity of the work. You feel that you are not sufficiently experienced to complete the work on your own. You would need additional supervision to complete the work to the required standard, and your manager appears unable or unwilling to offer the necessary support. If you try to complete the work within the proposed timeframe but fail to meet the expected quality, you could face repercussions on your performance evaluations. You feel slightly intimidated by your manager, and also feel pressure to do what you can for the practice in what are challenging times.
Requirements:
1. Identify the issue(s) you are facing as a new staff member.
2. Identify the alternatives available in the given situation.
3. Choose the alternative from the identified choices that best meets the AICPA Code of Conduct standards of due care and scope and nature of services. Explain your choice.
4. What issues in this situation, if any, make you uncomfortable due to your knowledge of the AICPA Code of Conduct, particularly the sections regarding due care and scope and nature of services?
5. What are the acceptable alternatives in this situation under the AICPA Code of Conduct?
6. What will you do? Why?
1. The issues faced as a new staff member include:
a) Being asked to complete complicated reconciliation work with tight deadlines, which is beyond the level of experience.
b) Lack of support and supervision from the manager in completing the work to the required standard.
c) Possibility of facing repercussions on performance evaluations if unable to meet the quality expectations.
2. The alternatives available in this situation include:
a) Trying to complete the work within the proposed timeframe, even though it may not meet the expected quality.
b) Request additional supervision or support from the manager.
c) Seek assistance from colleagues or other resources within the practice.
d) Communicate the challenges and concerns directly to the manager and discuss possible solutions.
e) Decline the task due to lack of experience and focus on other responsibilities within the practice.
3. The alternative that best meets the AICPA Code of Conduct standards of due care and scope and nature of services is option d) Communicate the challenges and concerns directly to the manager and discuss possible solutions. This choice aligns with the requirement of due care by acknowledging the limitations and seeking guidance to ensure the work is completed accurately and with appropriate supervision.
4. The issues in this situation that may make you uncomfortable due to the AICPA Code of Conduct are:
a) Lack of supervision and support, which could hamper the ability to perform the work with due care and professional skepticism.
b) Unrealistic deadlines and expectations that may compromise the quality of work and violate the requirement of due care.
c) The pressure to perform in challenging times that may override the need for appropriate supervision and support, potentially impacting the scope and nature of services provided.
5. The acceptable alternatives in this situation under the AICPA Code of Conduct include:
a) Seeking guidance, supervision, and support from experienced professionals within the practice to meet the required standards of due care.
b) Communicating any concerns or challenges to the manager and finding mutually agreeable solutions that uphold the Code's principles.
c) Declining tasks or seeking reassignment of responsibilities that exceed the level of experience or capabilities.
6. In this situation, the best course of action would be to choose alternative d) Communicate the challenges and concerns directly to the manager and discuss possible solutions. It is important to address the issue openly and honestly with the manager, expressing the need for additional support and supervision to meet the required standards. By initiating this conversation, it is possible to find a solution that aligns with the principles of due care and scope and nature of services while addressing the challenges faced as a new staff member.