Happiness Express, Inc

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Irene Gonzales CASE ANALYSIS Case 11 1.) Yes, they both violated the code of ethics. For Zabio’s case, she should not offer her services base on contingency fee. It is good that Zabio’s consultancy firm can provide a payroll system which is much cheaper compared to the existing payroll system of Wee Corporation, but the payment of the services should not be based on how much Wee Corporation’s saving if they choose to use new system, rather the payment should be based on service performed, time required, experience, ability, reputation, responsibility assumed, and benefits that accrue to the clients.For Zorro, he violated the Code of Ethics also for it is stated that he is the external auditor of Wee Corporation, he should not take part any internal transaction or duties for it may impaired his Independence in making his statement as to the fairness of the Financial Statement of the Corporation. 2.) Yes, Zorro violated the Code of Ethics for Professional Accountant, because payment on services offered should not be based on contingent fees. Further, being an accountant/external auditor, he has the responsibility to work with integrity, objectivity and independence. By doing so, he might impair his independence. 3.) Even though Wee Corporation is a nonpublic or public SEC registrant, still it is not allowed or ethical that the service fee would be based on contingent on the findings or results of the service. CASE 12 1.) First, I would examine disbursement book of Rojo Company if the amount reflected on the said account was the same written on the invoice amount. If it confirmed that the amount paid is the same in the invoice, then I would inform the Accounting Manager about the discrepancy. I would suggest that the Rojo Company must pay the remaining liability/obligation, not only because it is material as to amount involved, but also we

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