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.
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
However if this fee comes from the agency in which is being audited this firm is subject to scrutiny in regards to the audit. Independent auditors have been profoundly scrutinized based on the risk that an auditor may be swayed by the financial side of their agreement. A conflict of interest would make it difficult for an auditor to remain objective during an audit. A firm must take every precaution to assure there is no conflict of interest before commencing an audit. Conflict of interest is not always easy to see.
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
We will look for material misstatement such as accidental or intentional untrue financial statement information that influences a company’s value or price of stock, caused by error or fraud. However, a material misstatement may remain undetected. In addition, the audit is not designed to detect error or fraud that is immaterial to the financial statements. If we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. The audit is not designed to provide assurance on internal control, or to identify significant deficiencies.
Heather Moorehead M4 – Written Assignment 1.) Export capital for production abroad The exporting of capital for production would not be supported by a utilitarian and would be found to be unethical. A utilitarian would argue that by allowing our capital to be produced abroad we would be hurting ourselves domestically by giving up potential jobs to workers internationally and by limiting domestic usage. In today’s economy a company can set up production plants in virtually any country they want, and most tend to go where the cost of labor is least expensive. A utilitarian’s goal is to determine how to obtain “the greatest possible balance of good over bad for everyone effected by our actions” (Shaw & Barry, 2013).
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
One of the main differences in these two historic figures opinions about the Bank and the bill is that Hamilton believed there was a need for the Bank to regulate trade and inforce taxes. He said that those needs made it a constitutional measure and then he explained how to get around the legalities of making it constitutional. On the other hand Jefferson believed the Bank’s ability to regulate trade and inforce taxes were just conveniences, not a necessity to society and that there were other ways to do those things without the Bank and he certainly didn’t agree with Hamilton’s round-about way of making the process constitutional. In my opinion there isn’t any room for compromise because I don’t see either one of these strong minded men
Since the writing of the Act was rather poor, the government couldn’t really back themselves up on this issue. So instead, the Chief Justice, Roberts, decided to take a closer look at it. After some discussion, a majority of the Supreme Court (5/9) decided that the individual mandate’s penalty would be considered a tax paid to the IRS. They reasoned that people could avoid the tax by buying insurance. Since the Commerce Clause does not apply to taxes, the Supreme Court brought about Congress’ far reaching “taxing” power as the logical argument to the individual mandate's constitutionality.