5. The confidentiality agreement did limit the scope of the audit performed on ZZZZ Best. It is the job of the auditor to obtain sufficient and appropriate evidence. When Ernst & Whinney were not allowed to follow-up with anyone involved in the restoration process that limited their ability to gather evidence. 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.
For Pharma to survive and become viable it was obvious that some decisions had to be made, but was the sale of the assets in the best interest of the corporation, or was it in the best interest of Adams and Barker? One can only conclude that the directors violated all their duties of financial interests, care and rational belief and were not acting with best information and, thus, cannot be shielded by the business judgment rule. 7. What type of lawsuit, derivative or direct, would be filed by Cornelius
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.
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.
When you do this you put your funds and calculations in the hands of someone who job is to make as much money as they can from a project. You would not know of what is applies to a bill is correctly calculated for that service. I just don’t think it is good practice when you can easily go out and get cost estimates from different companies and then have a vendor bid for a service based off your price estimate. On the other hand is you do have vendors computing support, if you have a good one that you give a lot of business to, there is always the opportunity for discounts based on past and future service, and you can probably make out well when you have someone who is sound and trustworthy looking out for both you and the vendors benefits.
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.
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.
In fact, like other professions, personal values come into play in the accounting decisions and judgments made by the decision makers, so full disclosure might mean different things to different people. Legal checklists have mandatory items, but the financial picture might still be vague or lack numbers to give an accurate financial representation of the company at any given time, as shown in the financial statements. For example, if it was totally “objective,” Enron’s accountant would not have been able to “cook” the books to make the company appear to be in a better financial position than it actually was. The accountant and other Enron professionals would not have ended up in court for fraud and the likes. Even though the accounting profession has guiding principles (GAAP), they are not absolute, but subject to human judgment and interpretation and, at times, the lack of compliance leads to fraud (e.g., Enron, WorldCom, and others).
Lau Industries, Inc., 2001) posited that changes in work hours themselves do not constitute intolerability in the workplace, based on the premise that a reasonable person would not find this offensive enough to support constructive discharge. In (Taylor v. Principal Financial Group, Inc., 1996) the Fifth Circuit Court of Appeals upheld the lower court’s decision that the employer is not obligated to provide reasonable accommodation if the employee does not notify the employer of the request and the employer is unaware of the need for accommodation. While this is an Americans with Disabilities Act (ADA) case, the underlying premise is valid that the employee must make the accommodation request if it is not apparent to the employer that an accommodation is necessary or needed. The Supreme Court upheld in (Trans World Airlines, Inc. v. Hardison et al., 1977) that an employer does not have to provide days off for employees to respect their holy days if it creates undue hardship for the employer. The employer is not required to institute a policy of special treatment for an employee at the expense of other employees.
They are not required to have knowledge and expertise to start and maintain a successful business. A business model is usually evaluated by a bank or other financial institution that the company acquires capital from. An auditor is required to uphold integrity and has a responsibility to the stockholders to maintain competence and independence. All of this must be achieved while examining sufficient, pertinent evidence to obtain reasonable assurance as to the material fairness of the client's financial statements. This evidence supports what has happened thus far in the client's business.