Hubbard Inc: Jim Brock case - Essay Example

In fact, he is supposed to develop and issue in timely manner annual reports for Hubbard’s. Based on the preliminary report which he made on 2012 accounting records, results obtained showed a clear indication of a very profitable year. Basically, net income recorded was more than the projection by financial analysts for the year. The results of the financial performance pleased Brock therefore, he made a suggestion to his father to acquire some of the Hubbard’s stock because there was high possibility that stock price will shoot up after the announcement of the 2012 results.

In response to his suggestion, the father believed in his words and bought some of the Hubbard’s stock block at a price of $25 per share. 1.2 Outcome of Actions After the announcement of Hubbard’s Inc. 2012 annual report on Feb, 15, 2013 alongside favorable press coverage on the company’s remarkable performance, a boost on stock price was reported, in which, share price went up to $32. This was an equivalent gain of $7 per share, implying that in case Brock’s father decides to sell off his share at this time of the year, he will earn a profit of $7 per share sold.

Professional responsibility of Jim Brock in the issuance of 2012 annual reports covered a wider scope. In the first place, he is responsible for financial reporting which should be accomplished on yearly basis to help in management decision. Basically, the benchmark of account profession is to ensure that public interest is upheld. This means that professional responsibility of Jim Brock as Hubbard’s account is not only to serve the interest of shareholders, clients and credit but also to take into consideration needs of wider group of people with conflicting needs and incentives (Lerach, 2002).

Alternatively, corporate social responsibility is another professional role which an accountant needs to implement. According to belief of CRS, it is the company’s obligation to ensure that their actions are compatible with values of the society. CRS basically refers to approaches required for the implementation, business development and monitoring of strategies with regards to ethical standards, international norms and requirements by law. Brock, as an accountant must apply and interprets professional codes of conduct, principles of accounting and audit and required securities regulations to uphold his professional responsibility (Gaffikin, 2009).

Basically, compliance with the above professional guidelines and interpretation with regards to violation depends on an individual characteristic, judgments, culture and the organization itself. Finally, the interaction taking place between standard setters, regulators, management, auditors and accountants also contain ethical components that must be adhered to. 2.2 Was Jim Ethical in his Actions? Client’s integrity and confidentiality are the most important accounting ethics that should be monitored.

In case accounts violate any of the professional code of ethics, they can be subjected to disciplinary action (Zakaria, Haron and Ismail, 2010). American Institute of Certified Public Account developed ethics and professional values to safeguard industry reputation, and to win confidence of the