As the auditor of both MHA and NYH, according to Sarbanes-Oxley Section 201, I am prohibited most non-audit services to public audit clients. Those restrictions include, but are not limited to, bookkeeping/accounting processing and valuation services. I must report of internal financial reports by performing tests and offering my opinions, but not to assist with the creation of them. By helping compile estimates for closing costs related to the decorative pillow services of NYH, I would be in violation of this ethical accounting standard. It is my responsible to uphold integrity, remain objective, and adhere to the ethical standards of the PCAOB and IESBA.
This student shouldn’t have been expelled for his choice of words, because actions were not involved in the situation. You have the right to express your opinion in any way or form. Hann was kicked out for speech and only speech. I understand words could be offensive but there wasn’t any sort of physical combat that hurt other students for Hann to get expelled. In the press release Gregorian underlined the word actions, stating that rules don’t proscribe words they proscribe behavior.
Furthermore the case stated that there was actually no audit work that was done, and Madoff’s cousin was the sole practitioner conducting the audit. These factors raises serious questions of obvious bias and unethical practices involved in performing the audit. Another solution is to provide a safe environment or an outlet for individuals to disclose their potential concerns of fraud. For instance, an outlet such as fraud hot line may have encouraged those who turned the other cheek to come forth. Between the two alternative solutions, I believe that the first solution of tightening the review process of the SEC would be most effective in combating the problem statement.
Integrity is under section 110. This fundamental principles is most important element in accounting profession. This is because integrity need accountant to be straightforward and honest in all professional and business relationships. In this principles also restricted accountants from any benefits or advantages for themselves only. That why ethics should be taught in accounting subject so accountant will be honest, candid and forthright with financial
3. What internal processes or systems do you recommend to prevent fraudulent practices such as those present at WorldCom? Why were these practices not detected sooner? The internal audit department should have been required to report directly to the Board or CEO, and not to the CFO. I also think that the internal audit department should have had full access to the accounting system.
We believe that both the employee and the employer were unethical in this case because it illustrates a degree of moral intensity. The employee had a due diligence to the employer and should have brought his concerns to higher management instead of blogging it on a low profile under a false name. The employer had a due diligence to the employee and should have expressed their concern to the employee. The employer could of asked the employee if he could have deleted the blog or edit it so that the name of the employer was not mentioned. The degree of harm that could have happened to the company was not justified because when a search was made in an Internet search and the blog was not easily accessible in the public domain and this does not give the employer the just cause for termination of the employee.
Enron Corporation Business Law Enron Corporation Describe how Enron could have been structured differently to avoid such activities. Enron could have been aware of the agents are doing to avoid all the scandals that were going on in its company. Enron should have never used its stock value as collateral to obtain loans from its partnership. The partners in the corporation should have known that these techniques were unethical as well as illegal. As stated by Gilman, Hamed, Navran & Brown (2010), the ten things a company can do to avoid being the next Enron includes: Examine your ethical climate and put safeguards in place - Corporations are composed of cultures.
These companies make a point of following the law to ensure that others cannot take legal action against them. For example, a company may create more waste than necessary, but it will remove of the waste in a legal method rather than dumping it illegally. Accommodating An accommodating stance signifies that a company believes social responsibility is important -- and perhaps as important as making a profit. These companies satisfy all legal requirements and attempt to meet ethical standards. An accommodating company does not
With these aspects in mind, the authors offer recommendations that would limit the effects of biases including full divestiture of consulting and tax services, prohibit auditors from taking positions with the firms they audit, removing the threat of being fired, and educate auditors so they understand how and why biases effect their decisions. I found the study conducted by Cain et al. on the effects of disclosing conflict of interest very fascinating. I was surprised that disclosure of the advisors motive to mislead the estimators did not cause the estimators to substantially discount their advisor’s advice. I would think that disclosing the advisors motives would have a greater impact on the estimator’s decision.
To illustrate, United States law forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is a customary, accepted way of doing business. Similar problems can occur with regard to child labor, employee safety, work hours, wages, discrimination, and environmental protection laws. Traditionally, business ethics was considered to be a very controversial notion because even nowadays some people