Also, in Auditing Standard No.14 of PCAOB, it says the communication just gives the management an opportunity to correct misstatements. However, auditors should be more suspicious of these uncorrected misstatements, because there may be a sign of fraud. Thus, PCAOB requires auditors to understand why their clients refuse to make corrections, and evaluate the effect of the uncorrected misstatements, both individually and in combination with relevant accounts. 2. Should auditors take explicit measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements?
Pastin and hooker (1980) stated “The Foreign Corrupt Practices Act, while attempting to uphold morality by prohibiting bribery of foreign officials, may itself be an immoral law when examined from an ethical perspective” (p. 43). This law came about in the wake of the Watergate Scandal to curb bribery and enforce the morality of U.S. corporations. Instead of politicians, acting with higher ethics and morality it was passed to the business sector and enforced on their actions. Looking at the Foreign Corrupt Practices Act from a moral standpoint reveals there is little moral standing for the act. One reason for this assessment is many of the payments prohibited by the act do not meet the criteria to be defined as a bribe.
One Ethics: Whether file an antidumping case against leading foreign rivals As a CEO in the United States, though I am concerned about the possibly devastating effects of foreign imports, I will not tend to file an antidumping case against leading foreign rivals. The reason is the disadvantages of setting an antidumping case overweigh the advantages in the long run. The advantages of antidumping cannot be ignored. Antidumping laws definitely set a benchmark for foreign companies to behave ethically. More specifically, antidumping laws prevent foreign producers from dumping their products on domestic markets at abnormally low prices by punishing them through several measures.
The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake. The anxiety and pressure to certify that a company’s financial records are in good standing can be daunting. 3.) Independent auditors are sometimes perceived as the “necessary evil” by corporate executives because of the possibility of exposing corruption. To change this point of view an auditor can try to explain their intent to educate and improve the company’s policies, which can in turn lower costs.
Case 4-6: 1. Yes, I do believe that auditors should be held liable in situations like ZZZZ Best. It is true that ZZZZ Best management worked hard to deceive the auditors. However, the auditors in the ZZZZ Best case failed to maintain their professional skepticism and objectivity. They failed to probe deeper into the company’s operations.
3. What could AIG have done differently to prevent its failure and subsequent bailout?1. Discuss the role that AIG’s corporate culture played in its downfall. 2. Discuss the ethical conduct of AIG executives and how a stronger ethics program might help the company to strengthen the ethics of its corporate culture.
Mandatory standards are needed because companies might want to make the accounts appear unrealistically favourable. If this were to happen then shareholders would not be obtaining an accurate view of the business. For example, if discretionary expenditure were deferred, such as spending on research and training, then earnings would be artificially improved. There is a need to make it more difficult to manipulate accounts such as by deferring expenditure. 2: The background in the United Kingdom In the 1960’s confidence was lost in accounting procedures.
This strategy can be perceived as a form of business bluffing. You’re not lying or deceiving the audience, but rather you’re just not exposing the weakness. If there’s an established trust with your audience, then you don’t necessarily have to give all the details. When it comes to trust there is so much that is unseen. However, if one declines to bluff when conducting business from one deal to another, then he is putting his business transactions at a disadvantage and discounting the opportunities permitted under the business bluffing rules (Carr, 1968, p. 137).
Whether it’s the environment being so corrupted or economical reason, that individual needing a means for financial security or maybe its psychological reason, where a person is not conscious of what they are doing. Whatever the reason is, it’s a reason nonetheless and knowing the source of the problem is a good step forward to solving the long term effect, which is a decrease in crimes. Sir Francis Bacon (1600’s) said it best, “Opportunity makes a thief (Rensselaer Polytechnic Institute, 2010) After studying the Freudian Approach, you can find the Neo-Freudian Approach. Neo-Freudian reasoning states that the lack of guilt would develop from too many selfish desires for immediate gratification, and that the superego would be overwhelmed most of the time leaving little time for guilt (Aspu.edu, 2009).There are several approaches to the psychoanalysis of criminals and their inner drive to commit crimes. The Freudian Approach is that individuals experience traumatic experiences in early childhood which leaves a mark on the individual despite the fact the individual was unaware of these experiences (Aspu.edu, 2009).
If this is an acceptable form of payment, how might you ensure that it is ethically sound and that no power differential exists between you and the client? According to licensing boards, Consumer protection agencies, risk management experts, and ethics committees, fair exchange bartering (all bartering for that matter) is largely frowned upon, as there is the potential to create power disparity (power differential) between the councilor and client (Zur, 2011). Moreover, there is a heightened potential for disclosure concerns, boundary