Question 1: Auditors should not insist that their clients accept all proposed audit adjustments even though those that have an immaterial effect on the financial report. The auditors should be suspicious of any rejection of the clients and have to investigate deeper into the suspicious accounts. Moreover, auditors should not be careless even though they have close relationships with the clients and fear that they would lose potential auditing fees. Question 2: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles.
– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.
Confidentiality - Workplace confidentiality is a framework of workplace procedures and policies designed to maintain the integrity of confidential or potentially compromising information handled in the workplace. For certain types of information, there are laws about how the information should be handled, designed to maintain privacy for people trusting companies with confidential information. For others, no specific laws dictate information handling practices, but the workplace develops best practices on the grounds that the information should be
Sales reps can view records but not modify them. Any modification that the sales reps need must first be approved by the sales manager and then entered by the bookkeeper. B) Greater security measures needed in the warehouse. Goodner Brothers should employ a warehouse clerk to watch over the warehouse. Access to inventory in the warehouse by
The implied duty of fidelity protects business interests and imposes a obligation employee must not disclose any information or trade secrets of their employers business. Throughout the course of employment, an employer will obtain information, which may possibly be confidential information. If an employee’s position is highly ranked then there will be possibilities that the employer has acquired potential confidential business information that may be disclosed this type of situation will need to be addressed and employers will need protection. In Thomas v Farr plc. , the categories of information was sectioned out to address what type of information is not to be disclosed when the employment contract has ended.
As the auditor of both MHA and NYH, according to Sarbanes-Oxley Section 201, I am prohibited most non-audit services to public audit clients. Those restrictions include, but are not limited to, bookkeeping/accounting processing and valuation services. I must report of internal financial reports by performing tests and offering my opinions, but not to assist with the creation of them. By helping compile estimates for closing costs related to the decorative pillow services of NYH, I would be in violation of this ethical accounting standard. It is my responsible to uphold integrity, remain objective, and adhere to the ethical standards of the PCAOB and IESBA.
Electronic Surveillance of Employees Professor Eric Baime, JD MBA Law, Ethics, and Corporate Governance October 24, 2010 Abstract Employees should expect privacy to complete personal needs. Employers are within their rights to use electronic surveillance to insure a safe and honest working environment. This paper will discuss whether it makes a difference if an employee is in an open area or in an enclosed office. Also, the report will determine the employer’s need to know whether or not an employee is being honest is a sufficient grounds for utilizing an electronic surveillance system. The extent to what an employer can engage in electronic surveillance of employees will be examined.
complete an audit of all the financial data on a yearly basis. Human resource controls are needed. Each employee responsible for handling cash should be Bonded. Bonding is done by acquiring insurance that covers liabilities on assets caused by fraud or misappropriation of funds that could occur from employees mishandling cash. You would need to include all employees who handle cash on the application.
Annual Report for eBay Inc. Year Ending 2011 Shaun Evan Wright ACC 100: Accounting Professor Howard Katz Strayer University March 2013 Introduction With any company, you have an annual report. An annual report is a document that identifies and communicates to different investors and other people concerned about that company’s financial status. The annual report takes a look at the company’s financial earnings, assets, controls and procedures, quantitative and qualitative disclosures, etc. In this paper, that I am writing, we will explore and gather information from a very reputable and known company known as eBay Inc. I will be using their annual report from 2011, and explain the main sections of the report, discuss key factors that helped influence the company’s financial performance for the year stated above, the company’s assets, and we will also explain how management characterizes the internal control environment.
Trade secrets are by definition not disclosed to the world at large. Instead, owners of trade secrets seek to protect trade secret information from competitors by instituting special procedures for handling it, as well as technological and legal security measures. [2] Legal protections include non-disclosure agreements (NDA) and non-compete clauses. In exchange for an opportunity to be employed by the holder of secrets, an employee may sign an agreement not to reveal his or her prospective employer's proprietary information. An employee may also surrender or assign to his employer the right to his own intellectual work produced during the course (or as a condition) of employment.