...demonstrate "due care?" Administrative Controls demonstrate “due care” by providing and following policies, procedures, and standards that allow a company to show that steps were taken to protect the network and or information that is hidden by a responsible parties. It is critical that the CIA (Confidentiality, Integrity and Availability) is vital in protecting data that companies have of its customers. Due care is defined by the Information Systems Audit and Control Association (ISACA) as: 2.1.1 The standard of “due care” is the level of diligence which a prudent and competent person would exercise under a given set of circumstances. “Due professional care” applies to an individual who professes to exercise a special skill such as information system auditing. Due professional care requires the individual to exercise that skill to a level commonly possessed by practitioners of that specialty. 2.1.2 Due professional care applies to the exercise or professional judgment in the conduct of work performed. Due care implies that the professional approaches matters requiring professional judgment with proper diligence. Despite the exercise of due professional care and professional judgment, situations may nonetheless arise where an incorrect conclusion may be drawn from a diligent review of the available facts and circumstances. Therefore, the subsequent discovery of incorrect conclusions does not, in and of itself, indicate inadequate professional judgment or lack...
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...of Ethics By the end of this module, you should be able to: • Define ethics. • Identify how ethical standards protect taxpayers, Tax Professionals, and H&R Block. • List risks and penalties of noncompliance. • Name points of contact for ethics questions, situations, or violations. Check for Understanding: 1. What should you do if you discover that a taxpayer has previously not complied with the revenue laws of the United States? • Call the IRS immediately • Notify your Field Leader • Advise the taxpayer of the facts and the consequences for noncompliance • Nothing: you are only responsible for the return you are preparing 2. What should you do if you receive an IRS letter indicating that you have committed a paid preparer violation? • Contact the confidential H&R Block Talkline • Respond to the letter on your own • Ask another Tax Professional to help you • Notify your supervisor or District Manager immediately Notes: Module 2: Due Diligence, Know Tax Law After completing this module, you will be able to: • State basic tax details of: Qualifying child/qualifying relative, dependency Head of household Tie-breaker rules • Define the contemporaneous records requirement and show how to enter Due Diligence Notes into BlockWorks Check for Understanding: 1. Which of the following is not an EITC due diligence requirement? • Computation of an eligibility checklist • Computation of the credit • Verification of employment • Record retention ...
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...Running head: HR'S ROLE IN MERGERS Human Resources Role in Mergers and Acquisitions Carole D. Kindt University of Phoenix HCS 427 Human Resources: Principles and Practice in Health Care Tracie Mileski October 19, 2007 Human Resources Role in Mergers and Acquisitions Merger and acquisition is the general term that describes two companies joining to form one larger company (Mergers and Acquisitions (M&A), 2007). Mergers and Acquisitions and corporate restructuring are large parts of the business world. Some of these transactions are friendly and some not so friendly (Mergers and Acquisitions (M&A), 2007). In either case HR should be involved from the beginning of the merger process rather than calling on them post-merger to begin managing the merger at that point (Lindquist, 2007). HR is uniquely qualified to provide the business acumen, analytical skills, and close collaboration with mangers that is needed to handle the organizational and people issues that a merger raises (Lindquist, 2007). When two companies decide to merge they go through a process called due diligence, this process can take anywhere from months to a year, with the average being about 3 months (no author, 2005). HR professionals are valuable partners when they are utilized during due diligence. Due diligence allows the two companies to provide all the documents concerning their organizations, these documents include compensation rates, bargaining agreements, employment contracts and severance...
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...AICPA Code The purpose of the AICPA Code of Professional Conduct (“Code”) and why it is considered the foundation of ethical reasoning in accounting is that it is a code that has been established and agreed to by members of the AICPA. This is important in that is establishes a foundation of ethical reasoning in that a regulatory body isn’t issuing rules, the Code was established and agreed to voluntarily by CPAs who are members of the AICPA. I believe the three most important purposes of the AICPA Code of Professional Conduct (“the Code”) are the following: 1. Establishment of rules related to the Public Interest 2. Establishment of rules related to Objectivity and Independence 3. Establishment of rules related to Due Care The following are reasons why I believe the three purposes of the Code, as stated above,are the three most important. My reasons are central to the belief in maintaining trust in the CPA profession after issues such as the Enron and Arthur Andersen scandal. Public Interest CPA’s conduct many types of engagements for a variety of stakeholders which rely upon CPAs to have the interests of the public in mind. The Code states this concept well as “a distinguishing mark of a profession is acceptance of its responsibility to the public. The accounting profession's public consists of clients, credit grantors, governments, employers, investors, the business and financial community, and others who rely on the objectivity and integrity of certified public...
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...Delgado University of Phoenix HCS/478 Djuanique Slaughter March 7, 2013 Medical mistakes have different circumstances in each case. However, our court system applies a one size fits all methodology for such errors. Health care providers are at high risk for potential negligence, gross negligence, and malpractice claims that may be filed against them. In fact, as health care reform transitions into preventative medicine, registered nurses have added professional accountability to patient care than any other time in nursing history. Services provided by nurses can be criticized as deficient if accurate documentation lacks supportive description of the care rendered. This paper defines negligence, gross negligence, malpractice, and the importance of documentation. Also, it presents the article from the Neighborhood Newspaper, “Amputation Mishap; Negligence” and the ethical principles that would guide this author’s practice using such scenario. According to Guido (2010), negligence is defined as conduct that falls below the Standards of Care established by law to protect the well-being of others (p. 92). Negligence is the contrary of diligence. An act is believed to be made negligently when it is done without due diligence. It may also be described as an action that is performed in a manner that a prudent person would not carry out. For example, in nursing the crash cart requires daily assessment of stocked supplies and expiration dates (Guido, 2010). ...
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...process and better devise methods of hiding fraud. b) Hiring a former auditor would greatly compromise and possibly impair the existing external auditor’s ability to remain independent. On top of having knowledge about the auditor’s practice, preexisting relationships could cause bias in the audit outcome. c) Sarbanes-Oxley Act 2002 limits the ability of corporations to hire employees of their external audit firms. Sox requires a “cooling-off” period of one year, after the audit commencement date, before a member of the auditing team can begin work in a key position with the client. d) It is not appropriate for auditors to trust executives of a client. AU section 230, auditors should exercise “due professional care in the performance of work”, hence apply professional skepticism. The auditor should be impartial to the level of management’s honesty and pursue factual evidence to support findings and conclusions. 2. a) The client can be in a more powerful position than the auditor in the auditor-client relationship if the auditor is trying to sell the client additional services. b) SOX prohibits external auditors from providing certain services to clients including: • bookkeeping or other services relating to the accounting records or financial statements of the audit client; • financial information systems design and implementation; • appraisal or evaluation services, fairness opinions or contribution-in-kind reports; • actuarial services; • internal audit...
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...DOCTORINE OF DUE DILIGENCE Introduction of Due Diligence: Due Diligence is a process of thorough and objective examination that is undertaken before corporate entities enter into major transactions such as mergers and acquisitions, issuing new stocks and other securities, project finance, securitization, etc. One of the key objectives of due diligence is to minimize, to the maximum extent practicable, the possibility of there being unknown liabilities or risks. The exercise is the multi-dimensional and involves investigation into the business, tax, financial, accounting and legal aspects of an issuer. Definition of Due Diligence: "Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition. * Due diligence can be defined as: 1. The examination of a potential target for merger, acquisition, privatization, or similar corporate finance transaction normally by a buyer. 2. A reasonable investigation focusing on material future matters. 3. An examination being achieved by asking certain key questions, including, how do we buy, how do we structure the acquisition, and how much do we...
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...standards, as well as against tax law. Both IRS Circular 230 as well as the AICPA Code of Professional Conduct provides proper guidelines for explaining why the omission of this income would be unethical. Both sources also explain what is expected of a tax preparer (practitioner) in a situation such as this. Section 10.21 of Circular 230 states that if a practitioner knows a client has not complied with the revenue laws of the United States, that practitioner must then advise the client of the consequences as provided under the Code and regulations of such omission. Section 10.22 of Circular 230 would also apply to the given scenario. It states that a practitioner must exercise due diligence “in preparing or assisting in the preparation of, approving, and filing tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters.” (Treasury Department Circular No. 230, pg. 19, 2014) We as practitioners in this situation would not be applying proper due diligence if we were to carry forward in filing the tax return for The Gallery. We would be facing penalties, and even the possibility of losing our CPA license depending on the severity of the omission. AICPA Code Rule 201, General Standards is the corresponding rule for Section 10.22 of Circular 230. It includes four standards for professional practice for all AICPA members: professional competence, due professional care, planning and supervision, and sufficient relevant data. Adelle should discuss with...
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...Integrity, Objectivity & Independence, Due Care, and Scope & Nature of Services) I believe the three most important are Responsibility, Integrity and Due Care. While most of the principles are inter-related it is the customer/ public that must be taken care of first and not our personal interests. To protect the client we must first understand the responsibilities as a CPA. “The overriding responsibility of CPAs is to exercise sensitive and moral judgments in all activities. “ In meeting our obligations it is important to realize that our morals and ethics should be a huge factor in the way we conduct business and treat our clients (Mintz & Morris, 2011, Chapter Chapter 1). Integrity “recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality; (2) not subordinating the public trust to personal gain and advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and of due care.” As professionals we must have the clients trust to fully do our jobs. If the client doesn’t trust you as a professional then how can they trust your work product. Even the perception of wrongdoing can lose all trust. CPAs must be able to not only always follow the rules, but also the appearance of always doing the correct thing (Mintz & Morris, 2011, Chapter Chapter 1). “The due care standard (diligence) calls for continued improvement in the...
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...Ernst & Whinney had an obligation to be independent, objective and with due care.Objectivity requires that an auditor should be skeptical and obtain independent evidence to verify information from the client. Ernst & Whinney failed to meet this obligation when they did not require corroboration of the insurance restoration contracts from independent third parties. When Ernst & Whinney resigned from the audit engagement,they had a professional obligation to disclose the reason for the withdrawal. Due care requires that an auditor discharges professional responsibilities with competence and diligence. It imposes the obligation to perform professional services to the best of the auditor’s ability with concern for the best interest of the public. The sole proprietor-auditor and Ernst & Whinney did not gather enough evidence on the restoration contracts, nor viewed the evidence gathered with skepticism. Between 1985 and 1986 there is a 390% increase in Revenue and 350% increase in Cost of goods sold. The auditors should question the increase in accounts receivable, which was 33% of sales and represents four months on an annualized basis. The auditors should question where the cash is from the collection of sales (Sales of $4,845 less A/R of $693 less Cost of goods sold of$2,050). The company should have approximately $2 million to pay down liabilities or invest in assets. With the cash flow with borrowings of current liabilities and notes payable, the company had...
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...160/-. The issue was opened for subscription on 15.10.01 and closed on 15.11.01. It was alleged that certain material disclosures were not made in the Letter of Offer of the rights issue concerning a criminal case against Shri Abhijeet Rajan, Chairman and Managing Director of the issuer company. SEBI received a complaint dated October 17, 2001 from Prashant Glass Works Pvt. Ltd. stating that a criminal complaint was filed before the IVth Additional Chief Judicial Magistrate, Varanasi on 15.10.1996 against Shri Abhijeet Rajan for the offence of forgery etc. and that he was on bail since 1998. Further that the matter concerning the criminal case was not disclosed in the Letter of Offer and thereby the Merchant Banker had not exercised due diligence and skill for ensuring true and fair disclosures in the Letter of Offer and was issued negligently without verification of the statements concerning the issue. 2.0 An Enquiry was instituted vide SEBI's order dated 4.5.02 under Regulation 39(1) of SEBI (Merchant Bankers )Regulations, 1992 (hereinafter referred to as the said regulations) to enquire into the alleged contravention of Regulation 13 of the said regulations read with Clauses 2, 5(b), 7(a) & 9 of the Code of Conduct of the said Regulations. 3.0 The Enquiry Officer...
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...the incredible environments in which doctors care for and treat patients. While drawing on a vast array of sources, including his own personal experience, Gawande interweaves into nearly every chapter fascinating vignettes about the most important person in his view of medicine: the patient. By ensuring that every message is personalized in this manner, he brings a warm, humane touch to this superb book. His idea of the “three core requirements” for successful performance in medicine— diligence, doing right, and ingenuity — and in turn considers specific problem areas in each. He cites three distinct examples in which diligence is essential to the successful execution of medical therapy: the WHO’s and their work in India with the polio outbreak, US military’s medical staff in Iraq, and the work of infection-control specialists with hand washing and disease prevention. All of their efforts are demonstrably linked by the almost obsessive diligence of the clinicians responsible. When talking about ‘doing right,’ Gawande takes on a number of compelling issues which includes the litigious nature of our society toward health care providers. We meet two intriguing people, a physician colleague of the author whose son was harmed by medical error and an ex-clinician who is now working as a medical malpractice lawyer and gains the novel insight into the hardships dealing with rectifying the occasional harm that may just result from health care. Gawande’s allows the reader to consider the...
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...Health Care Communication Rosa Singleton HCS/320 11/10/2012 Kristin Thrun Health Care Communication When communicating in the healthcare field, is it important that what is actually being said is comprehended by all parties involved in the conversation. Or is it only necessary to just say what you think and feel is necessary and not worry about the outcome of situations? Effective communication is a very important and vital part of a health care professional’s career. Without the due diligence of a healthcare professional, someone’s health can be at risk and they may lose their life. How does effective communication incorporate the basic elements of communication? To use effective communication, one has to know what the basic elements are that goes along with communication, those elements are: the sender who sends the message, the message, the receiver who the message is going to, and the feedback, which is what is being relayed back or being done because of the message sent. Using the elements of communication will not only make one look great to an employer, but it will also boost business, it will help others to understand the conversations that go on between them, and it can also save lives whether it’s in the medical field, or somewhere else in a crisis situation. “The key to effective communication is shared understanding...
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...By “eating hours” Kevin will be contributing to inaccurate budgeting for his audits. 3. Identify the Stakeholders and obligations: * Kevin Lowe – a. Perform his job professionally and competently. b. Honestly report his hours as specified in work rules as a staff accountant. c. Do his best at Stooges LLC and try to get promotions and raises. * Bo and Moe – d. Manage staff and workload to achieve budget goals for the audit. e. Provide good ethical leadership to the audit team. f. Communicate clearly goals, expectations and work standards to staff. g. Provide good advice and guidance for staff that are not meeting standards. * Stooges LLC – h. Provide a competent professional audit at a reasonable price for clients. i. Provide clear guidelines of professionalism for time-reporting to employees. j....
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...Professor Patrick Coyle January 17, 2015 SEC578 Keller Grad School Of Mgmt How do Administrative Controls demonstrate “due care”? To better answer this question lets define “Administrative Controls” and “Due Care.” Administrative Controls can be the defined as direction or exercise of authority over subordinate or other organizations in respect to administration and support, including control of resources and equipment, personnel management, unit logistics, individual and unit training, readiness, mobilization, demobilization, discipline, and other matters, while Due Care is the degree of care that a person of ordinary prudence and reason (a reasonable man) would exercise under given circumstances. With this understanding we can see that Administrative Controls establish the ground work for an employee to understand and be able to do their job in accordance to the company’s policies and procedures. Administrative controls consist of approved written policies, procedures, standards and guidelines. Administrative controls form the basis for the selection and implementation of logical and physical controls. Logical and physical controls are manifestations of administrative controls. Some industry sectors have policies, procedures, standards and guidelines that must be followed – the Payment Card Industry (PCI) Data Security Standard required by Visa and Master Card is such an example. Other examples of administrative controls include the corporate security policy...
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