Academic Writing

Introduction Review the below case. Consider the core key concepts discussed within our textbook as you formulate and construct your document. Who’s Accountable for Offshore Oversight? As customers, we’re accustomed to U.S. firms using offshore business processes, such as telephone answering centers for call-in purchases from catalogs and airline travel assistance, but how comfortable are we with U.S. accounting firms shipping confidential financial data to be processed in far-off Europe, Asia, or Central America? That’s what’s happening increasingly, as U.S. accounting and financial services firms outsource accounting’s “back-office activities,” including bookkeeping, payroll processing, billing, collecting, and tax return preparation. For accounting firms, the attractive benefit of offshoring—lower processing costs—is offset by risks of noncompliance with U.S. laws, failure to deliver the service, and a soiled repu­tation from not meeting expectations. Offshore outsourcing certainly raises the possibility of conflict with the client’s expectations for privacy, security, and confidentiality of its information, for which CPAs are accountable. Fulfillment of these expectations is controlled better using nearby vigilance in traditional in-house processing, under stringent guidelines of the profession’s national association, the American Institute of Certified Public Accountants (AICPA). Under the Code of Professional Conduct, CPAs must maintain client confidential­ity in all engagements (in all transactions with and services for clients) and perform professional responsibilities with competence and diligence. Violations are subject to AICPA sanctions and, even, legal recourse. Beyond legalities, how­ever, CPAs’ staunch code of ethics is a long-standing force for self-governance and ethical conduct in the U.S. accounting Prospects for the safekeeping of information diminish with outsourcing. Transatlantic controversy exists, for example, over who should have oversight responsibilities for professional conduct and accounting regulation. The U.S. requirement that non-U.S. accounting firms register with the U.S. accounting board and submit to its oversight is hotly contested by the European Union (EU), which insists that the Americans rely on “foreign” oversight. But how can a U.S. client rely on quality and privacy from the disparate accounting systems among EU and other countries around the world? Does the Code of Professional Conduct apply to offshore firms? With private information flowing on the Internet, what assurances do clients have against unauthorized access? Should Internet transmission be banned, and offshore firms have access only to images resid­ing on U.S. servers? In determining what practices to employ for protecting clients, some advocates suggest, at the very least, that accountants seek clients’ permission for using offshore out­sourcing. While the accounting profession searches for answers to these outsourcing-related issues, one principle remains clear: The use of third parties in no way diminishes the CPA’s accountability for privacy, confidentiality, and security to their clients. Activity Instructions In a well-constructed scholarly document, address the following two points: 1. What are the pros and cons of using offshore financial data processing? 2. What practices should be used with outsourcing to protect clients' private financial information? Writing Requirements (APA format) 3-4 pages (approx. 300 words per page), not including title page or references page 1-inch margins Double spaced 12-point Times New Roman font.