Review-Top former CGA official expelled

http://www.vancouversun.com/news/former+official+expelled/1982332/story.html

http://www.vancouversun.com/news/North+Vancouver+banned+life+from+association/1981222/story.html

Summary

A North Vancouver CGA, Laurie (Laurence) Dye, who received the highest awards his professional organization can bestow on its members, has been expelled from the association. The reason is that he abused the trust accounts of five mentally incompetent clients. Dye was appointed to administer the cases of the adults who were incapable of taking care of their own financial affairs by a B.C. Supreme Court judge. Dye took their money from the trust accounts and lent that money to his own practice. Furthermore, he loaned the money at below-market rate. Dye also paid himself without the approval of the Public Guardian's office. Laurie Dye was one of the most decorated CGAs in B.C. He is not the first one who got banned. In January 2006, Jo Coffey was expelled after she was charged with embezzling money from her clients.

Connection

Chapter one to nine talks about the basic principles of accounting, the GAAPs. The problem is that the GAAPs are not laws. That gives many accountant and accounting firms chances to cheat. Nobody knows the exact amount of money we lost because of tax evasion. We tax payer have to pay more than we should pay. It’s important for accountants to follow the GAAPs, and the related laws should be made. There will be more professionals like Laurie Dye or Jo Coffey as long as the law is not completed.

Reflection

We are learning how to be an accountant, how to follow the procedures, and stuff. We have to ask ourselves a question, "Will we be ethical?" Being an accountant gives us plenty of chances to cheat and make some illegal income, to be someone like Laurie Dye. Can we follow the GAAPs even when we are not forced to follow the law? I'm sure now everyone can say "yes". But can we still say "yes" 20 or 30 years later. One Laurie Dye is enough for our society. We accountants have to have ethics like any other jobs such as lawyers or doctors. And that's what makes us significant in this society.