Please submit reply of 200-250 words to this thread with two citations
When replying, try to address different aspects of the ethical argument including biblical integration.
Floating should never be suggested or taken for consideration. First, as a professional in a profession giving tax advice, holding to a higher standard is very important. A term known by the Federal Reserve as, “Float is money in the banking system that is counted twice, for a brief time, because of delays in processing checks.” (Federal Reserve, 2021). Because the check will not be completed for a few days to a week, that money in the account still collects interests even though the transaction is in process. The single fact that this employee is knowingly doing this solely to gain interest makes it an ethical concern. There are ethical rules and policies that cover situation regarding dishonesty.
Two words stand out, morality and ethics. Both do not give a solid black and white answer to right or wrong. To be ethical takes integrity, “Integrity requires a member to observe both the form and the spirit of technical and ethical standards” (Dusk, B., 2019, p. 91). Along with a moral responsibility in acting in good faith. To act in a manner of intentionally misleading, does not lead to higher professional standards. Float at times will occur, but to do so with intention to gain money and not pay your IRS dues as directed in a manner needed can lead to negative impacts.
As for AICPA, codes that apply to this matter would be, “1.100 – Integrity and objectivity” (AICPA). Which described is, “Integrity-to maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity [0.300.040.01]” (Roby, S., 2020, p. 17). (AICPA). Another one falls under “1.130 Preparing and Reporting Information” (AICPA). Based on the matter of potentially not accounting for the check on the financial statements and allowing the route to be sent through Virgin Islands creates intentional delays in processing. For a professional firm to know and allow this, could also be liable if the transaction and act ends up becoming an unlawful act. For example, if the check gets lost or stolen or by chance misses IRS reporting deadline, who is responsible? Errors can cost all involved.
Statement on Standard Tax Service No. 7 reflects the tax standard for advice given to clients. It gives a broad scope of professional judgement, standards to uphold, and communication between client and customer. This refers to customers suggestion on floating a check and how the client should handle the situation in a professional manner.
From a biblical perspective, which should the first and foremost way of approach in this matter. I reflect on a verse, “Then he said to them, Watch out! Be on your guard against all kind of greed; a man’s life does not consist in the abundance of his possessions” (YouVersion, Luke 12:15). This would be a matter of being greedy to enrichen yourself while putting the company at risk for potential wrongdoing or eventually fraudulent acts.