Suppose that Cornelius believes that Elliot is not a good hire for Pharma. Can he fire Elliot? Although Adams may have had the legal right to hire Elliot without the consent of the others, it was a morally wrong decision not to seek the consent of the other shareholding partners. As a privately held corporation which is small in size, the promotion of business efficiency is an objective best served by enabling the owners to arrange the organization of the enterprise as they choose unless such decisions are outside the scope of the partnership business which would make it impossible to
The courts ruled against Mack as by backdating his payment for the fertilizer, he was trying to reduce his tax liability. Tax evasion is breaking a civil statute and falls under statutory illegality. Hence, the courts deemed the agreements to be unenforceable (Weir, D. Jan, Pg 147). There are two impacts of this case on a certified general accountant (CGA). The first impact is skills development.
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.
It is my responsible to uphold integrity, remain objective, and adhere to the ethical standards of the PCAOB and IESBA. As NYH is wholly owned by MHA, failing to meet independence guidelines will tarnish both the auditing firms’ reputation with the public resulting in a loss of client business and compromise my own professional career. As the auditor of the parent company, MHA, I must remain independent as the financial statements to be prepared with NYH will be material to the MHA/NYH consolidation statements. Not only will the auditing firm and I personally suffer, but MHA and NYH could potentially be
It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not a favorable purchase for Mr. Jones. Ina a case where the tax identity of a firm does not cease not to exist, the tax aspects will remain the same and so will the existing tax schedule. So in this case it would mean that Mr. Jones would not be allowed to change the financial year to end on December 31. The buyer in cases where he can’t change the legal entity is in a non -benefice situation, the buyer is limited to follow the current tax basis on the company’s assets even if the buyer paid more for the
As for D, this is not for guarantee. 2-21: A. This is the definition of PCAOB. As for the text, it said that it is a quasi-government al regulatory agency overseen by the SEC in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. For B, accounting standard is not correct.
Predict counter argument that the IRS could use to validate its position. Prepare a response to the predicted IRS counter argument. Provide a rationale for the prediction. The counter argument that the IRS could use to validate its position is to consider a refund or abatement request with respect to a given year even if my client have not paid the amount due in full, but most likely an revenue officer (RO) in collection setting will not want to hear arguments as to whether the tax assessment is valid or proper. If my client was to consider a refund or abatement request, we would enclose the documents along with the amount that my client owes.
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
The act can be fulfilling an obligation rather than performing a selfless act. Deontology, is more commanding, it focuses more on your moral duty. Although, a deontologist may assign a duty to his or her self, there is no rationale for deciding an individual’s duty. Looking back on the person who committed the financial crimes, in virtue theory he may have just accidentally wrote the check off the wrong account. In utilitarianism theory, he may have written the check for his mother’s mortgage so that she can buy time to avoid foreclosure on her home.
It is ethically wrong for them to keep it, regardless of if they were let go from the company. Further, this connects with Deontology in that if they were to keep the money from their former place of employment then it may become universally acceptable. As Kant states, “An individual must act as though his or her action would become the general rule of society.” Keeping the money would set a bad example for others in similar situations and may even lead to society believing it is acceptable to “swindle” from their employer. In order to follow a standard of morality and ethics it would be in their best interest to return the money to their former employee rather than risk their reputation and the negative trend that they could set for