The company should have been able to follow up with all venders and customers to attest to the validity of the financial statements and they were not able to do this and not able to gather the “appropriate and sufficient evidence” needed. When a client will not allow the auditor to gather evidence needed to perform a correct auditor then the opinion can be affected. The auditor cannot attest to the fairness of the financial statements if the evidence is lacking or
Identify the main reasons for reviewing working methods, products and / or services in a business environment. The main reason why a business should review working methods, products and / or services are to ensure that they are keeping in line with other businesses. An example of not keeping up with the times is HMV. Change can cause added pressures to the business. However there are changes that would have a small affect on the business.
Hugh McBride will address who the company’s stakeholders are, define the end-state vision, identify and evaluate alternatives, identify and access the risk of the alternatives, recommend optional solutions, create and implement solutions, and to access the outcomes. Beltway Investments are McBride Financial Services major investor. There are some that anticipate for the company to be run by implementing corporate governance. The company’s CEO has decided not to implement this option. The new CEO would rather operate the company without interference of the “money man.” Even though, this maybe a gamble due to corrupt the thinking that would affect Beltway’s public credit.
Ethics Paper MGT498 Ethics Paper One of the biggest things that big named organizations sometimes tend to forget is that when difficult decisions must be made, they affect everyone within that organization. Whether it be budget cuts leading to loss of hours or layoffs, lower stocks percentages for the shareholders or it can even change things positively, and require more production of hiring. Either way, when issues come up and things change, it is important to keep everyone involved well informed and made in the best interest of those directly affected. In the business world, corporations have a responsibility to the employees as well as the stakeholders to be ethical in their decision making by staying true to their beliefs and behavior to society. When unethical decisions are made, everyone involved in the corporation and its well being are affected in a negative way and will jeopardize the well being of the business.
It is a review of management and how operating procedures work. How effective and efficient the procedures are for the company. Although operational audits reveal possible problems in the financials statements, a compliance audit and fraud audit will help Whitfields internal
It has two sub goals which are safeguarding from employee thefts and safeguarding from unauthorized use. These goals are in place to help ensure reliability and accuracy in accounting data. The purpose of internal controls is to help a company meet its stated mission as well as to avoid obstacles that stand in the way by giving access to information that allows a company to evaluate their progress and maximize the use of their resources effectively. It allows managers and administrators to respond in a fast manner to changes in the competitive and overall economic climate and modify their operations through the use of standardized, regulated information. ( Weygandt,Kimmel & Kieso, 2008) It is more than quite obvious that in business dealings all parties involved for do not always conduct themselves in an ethical manner.
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.
Adhering to compliance is crucial to prevent companies from failing and taking huge financial loses. McBride must implement a system of audit compliance committees that will help mitigate non-compliance. Audit compliance committees will review financial documents, including receipts, documents, stocks, trades, shares, investment numbers and any other financial documentation. Non-compliance includes behavior and unethical actions performed by senior management that will be audited and monitored by the compliance committee. The committee will consist of internal and external auditors who will each have a part in ensuring McBride continues to perform and service the needs of customers
False. A general purpose financial report is a general report that shows all of the financial information that pertains to a business. This is done to meet all of the needs of the readers, rather than those of a specific group of readers, such as investors, shareholders, business executives or budget planners. (e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.
Nathan Osborne Phil 186 It’s Good Business: Robert Solomon The author Robert Solomon argues that ethics play a big part in the business world. He does not believe that in order for business management to succeed that they must include unethical or illegal methods to be able to succeed. Solomon believes that business management is not as simple as making revenue. He acknowledges that while illegal and unethical practices in business management could bring positive results in the short run, eventually the business is going to fail in the long run. This is why Solomon recommended eight important rules that can help businesses in including ethics into their business operations.