Please answer under each question
1.Newspaper headlines frequently highlight instances where business professionals, politicians, and others are accused of engaging in unethical behavior. In response, there have been numerous attempts to reduce their occurrence. For example, some have argued for universities to include more courses in ethics.
a. Describe what constitutes “ethics” and highlight the challenges of developing a set of rules and guidance to increase ethical behavior in society.
b. Why is ethics important to the conduct of business in a market-based economy?
c. Why do individuals act unethically?
d. What are common rationalizations individuals use to justify their unethical behavior?
e. Discuss whether ethics should be taught, for example, in university courses.
2. The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes–Oxley requirements on independence. Explain your answer as necessary.
a. Providing advice to a private company client on accounting for a merger with another private company.
b. Providing bookkeeping services to a private company. The source documents were prepared and authorized by the client.
c. Providing internal audit services to a public company that is not an audit client.
d. Implementing a financial information system designed by management for a private company.
e. Recommending a tax shelter to a client that is publicly held. The services were preapproved by the audit committee.
f. Providing bookkeeping services to a public company. The services were preapproved by the audit committee of the company.
g. Providing internal audit services to a public company audit client with the preapproval of the audit committee.