Auditors should not require their clients to accept and correct all the adjustments. In the audit process, auditors are easily to hold different opinions with management over financial statements; especially over the accounts require personal judgments. But auditors are not always right, and their clients may disagree with the misstatements detected by auditors. According to AU §312.43, after timely communication between auditors and management, management has the right to disagree with the audit adjustment. Also, in Auditing Standard No.14 of PCAOB, it says the communication just gives the management an opportunity to correct misstatements.
As an auditor one is required to remain objective, an auditor should at all times remain independent in fact and appearance. They should take special precautions to assure there is no conflict of interest. An auditor is required to make an unbiased opinion on the financial stability of an organization (Schumerhorn, 2012). It is customary to charge a fee for auditing services, this is how auditing firms produce revenue to support their business and employees. However if this fee comes from the agency in which is being audited this firm is subject to scrutiny in regards to the audit.
As the main issue at stake is the process of the matter; therefore the principle of duty must be followed. The ethical expert would advise “2 Day FM’s Hot 30” to exercise self-restraint and act ethically as it is their duty. Despite the temptation to please audiences and to achieve high ratings and revenues by humorous pranks, duty must prevail and the prank must not be aired. Furthermore, individuals in and outside the business universally should be treated with respect and should not be treated as a means to an end. To not air such pranks; this can be easily accepted universally, which is in compliance with Kantian ethics.
Grant Thornton should have cross-referenced these forms and looked for any discrepancies. The decision for Grant Thornton to rely heavily on the delivery receipts was reckless on their part. An “auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding financial statements under audit.” (Prelecture Slide 14) The appropriateness of the evidence defines the validity or reliability and in order for this to be true it needs to be objective and free from bias. (Prelecture Slide 14) The delivery receipts failed to provide this validity and reliability because they were
Robbin Industries is jeopardizing itself by not properly reporting the advertising costs. As an operating company, they must understand the generally accepted accounting principles and adhere to them (Weygandt, Kieso, & Kimmel, 2010). (c) What would you do if you were Wayne Terrago? Wayne Terrago should try to report the financial condition and results of operations fairly and in accordance with the generally accepted accounting principles. As controller, Wayne should inform management and understand what is acceptable according to the GAAP.
A good accountant from a utilitarian perspective would assess how the organization is creating and maximizing utility. Utility can be defined in many ways but a concise description is utility is the happiness added by a certain activity. This utility would be assessed all by values as utilitarians try to attach value created to every decision they make. Non-financial information is not important for good accountants to worry about, only financial information that is important for societal value. As long as the organization is maximizing the utility with the decisions they make, the good utilitarian accountant should not worry themselves with the moral implications of the decisions they made.
A company that expects its managers to behave ethically to the degree that they stay within the law is acting with a(n) _______________ approach. (Points : 4) | accommodative proactive defensive obstructionist offensive | 12. One managerial implication of the justice model is that managers should base their decisions on: (Points : 4) | The effects on stakeholders' rights What provides the maximum benefit to most stakeholders Whatever promotes a fair distribution of outcomes Arbitrary factors The organization's culture | 13. Title VII of the Civil Rights Act prohibits discrimination on the basis of all but one of the following. Which one?
While this adds to the usefulness, since reports from one period are comparable to reports from another, it also aids in analyzing reports for this same reason, too. This means that certain methods can be used for a single item. If a method needs to be changed, this is something that would then have to be clearly explained and illustrated through disclosures. This can only happen as long as the entity can justify the use of an alternative accounting principles, and this entity must be ready to defend the change, which should not be taken
Simply put, duty of care is considered on both parts. The general public is expected to behave reasonably. This means that people shouldn’t run down escalators. On the other hand, a business shouldn’t place an escalator where the exit bottlenecks pedestrian traffic and creates a potential hazard. The defendant must provide reasonable care to the plaintiff if a transaction occurs between the parties (Mallor, Barnes, Bowers, & Langvardt, 2010).
Clear policy implications: Do not just manage by exception. At times firms tend to overlook many attributes of a salesperson as long as he is making the sales. Long term implications of this should be considered by the firm. Irrespective of how good a salesperson is, he should be mandated to fill the reports in a timely and accurate manner, and non-compliance should be monitored and dealt with appropriately 3. Timely feedback and actions: Company should lay out different parameters on which a salesperson needs to perform and feedback on these should be collected and evaluated in a timely