In addition, much of the new assignments are given to untrained professionals with strict completion deadlines. Because of such dilemmas the auditing firm has been faced with the ethical dilemma of whether to assist with the accounting issues at MHA and NYH. As a professional in accounting I have agreed to terms of independence. By confirming to such terms, I must not issue any non-audit services. 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.
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.
In fear of losing her job, she does not report the mistake to her supervisor. How should the employee have handled this situation and what should the supervisor do when the situation is disclosed? How does the AICPA Code of Professional Conduct relate to ethics? Provide examples to support your response. The CFO for a corporation deliberately misstates expenses on the income statement purely out of a sense of loyalty to his CEO and the company.
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.
AICPA American Institute of Certified Public Accountants (AICPA) is a voluntary organization of CPAs. The AICPA Code of Professional Conduct focuses on a set of professional and ethical standards followed by CPAs. The primary standard set by the AICPA Code of Professional Conduct is to honor the best interest of the public, even if doing so sacrifices personal gain. The code also focuses on constantly exercising professional and ethical conduct (Mintz & Morris, 2011). The executives at WorldCom knowingly misstated capital spending moving funds from one account to another to hide the reasons for the expenditures, and manipulated financial reporting.
The partners should be of like mind and have a contract that states the percentage of profits, losses, debts and day to day duties that each partner is responsible for. The contract should also state what happens if one of the partners dies or retires. In a partnership you are legally responsible for your partner's actions and can be held labile for these actions. Partnerships report their earnings, losses and deduction for the business operations, but the business itself doesn't pay taxes. The business "passes through" it's earnings or losses to its partners.
A C Corporation is considered an entirely separate entity and those that make up the company such as officers, directors, managers, and shareholders are not personally liable for the acts of the company. This is the main advantage of a C Corporation. A disadvantage is that profits of the corporation are taxed at two different levels. One at the corporate level and then another on the dividends of the shareholders. · Liability-A C Corporation has limited liability in that it is seen as a separate entity from the owners, which in turn protects their personal assets from being taken to pay for the company’s debt or liability losses.
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
------------------------------------------------- It is important to firstly define what the difference is between management and leadership. The biggest difference between managers and leaders is the way they motivate people to follow them. Managers have a position given to them by the company. Their subordinates work for them to complete tasks and in turn manage situations as they occur. Leaders on the other hand do not have subordinates when they are leading.
The stakeholder theory acknowledges the shareholder’s importance but asserts that they aren’t the only ones whose interests should be considered. The Board of Directors (Incorrect) They are responsible for shepherding the process of reporting the results. While they care about the integrity of the clinical trials, in this particular setting they are not actively involved in the decision. Carson Nelson, Chief Executive Officer (Incorrect) While the CEO will eventually be part of the conversation, the primary conversation will be happening with the Chief Legal Officer. Cary Bryant, Chief Legal