* What are the legal requirements? * Didn’t break any laws, related to him applying company funds towards personal use even though his act was solely beneficial to himself alone. What are the ethical duties? * Maintain price-competitive markets will ensure that scares resources are used to optimally satisfy consumer needs. * Pareto Optimality wasn’t obtained because maximum benefits of most wanted goods and services produced at minimum cost of least wanted resources.
The first impact is skills development. In order to remain ethical and avoid instances of statutory illegality such as tax evasions, CGA's must have the knowledge, skills and ability to show a taxpayer where they can save on taxes, and provide advice about conducting financial affairs in a way which will limit tax liability. In the aforementioned case, if Mack's company had a proficient accountant, they may have been able to come up with other ways to reduce
E2-1 (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. TRUE (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. FALSE. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. However, an implicit assumption is that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.
An independent audit is a means of satisfying the need for reliable information on the part of decision makers. Factors of a complex society which contribute to this need are: • Remoteness of information a. Owners (stockholders) divorced from management b. Directors not involved in day-to-day operations or decisions c. Dispersion of the business among numerous geographic locations and complex corporate structures • Biases and motives of provider a. Information will be biased in favor of the provider when his or her goals are inconsistent with the decision maker’s goals.
However, the requirement of enrichment could be argued as well if enrichment came from knowledge and not profit. Lindquist certainly did have a reasonable expectation of being paid for these services and they were not doing this as any charitable act. Obviously Lindquist perceived the services that they were providing as a benefit to Middleton and Middleton assumed they would benefit. Craig Miller was a general manager of the successful organization, Lindquist Ford. So, it would lead you to believe that his presence at Middleton would be a benefit to that organization.
Auditing is concentrating on material part of an association with a plan to make sensible assurance that the framework portrays financial actuality in an accurate and reasonable way. The same underlying guideline with not many varieties is appropriate to different types of reviews incorporating accounting and monetary reviews and quality control reviews. Our firm's accounting audits includes and independent evaluation on the Management’s ability to present true and fair financial statements that are free from material misstatements. A analysis of accounting process employed by The Client necessarily entails such objective. We perform our auditing activities with fairness, diligence and integrity in order to uphold our role as a guiding partner to The Client in the process of identifying weak internal control areas by suggesting improvement to streamline the
The neo liberals also believe that there should be minimal state but in an economic sense, and this is in order to allow capitalism to flourish without excessive restraints and laws imposed on business, and this is to encourage competition in the market to improve efficiency and profit. So in terms of their view on a strong, but minimal role of the state they differ on the reasons for support but it implies they are internally coherent. However, the New Right could be said to be internally divided in the sense that there is conflict between the ideas of society. Neo-liberals
Two Arguments against government/public ownership 1. Competition would give competing utilities an incentive to improve service as the consumer would have a choice. 2. If utilities were competitive there would be no danger of regulators not being fair when setting rates and allowing for licenses as there would be no monopoly for them to control. The company at hat served the public best would be favored in a competitive situation C. My opinion is that there should be a balance between competition and government involvement.
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.
Consequentialism assumes that if human being would weigh the outcome of their taboos and beliefs, then happiness can be achieved and pain reduced. But utilitarianism assumes that people can only value a virtue if it is deemed beneficial in accomplishing human happiness. For example utilitarians believe that truth will make a better society while consequentialists believe that truth will make a better society only if the outcome causes no harm. Basically utilitarianism assumes that the wrongness or rightness of an act depends on the moral good produced as a result of doing that act. This implies that an act is right if it minimizes violation of a certain moral right thus no one should violate moral rights for happiness sake and be justified.