CHAPTER 3 Auditors’ Ethical and Legal Responsibilities SOLUTIONS FOR REVIEW CHECKPOINTS 3.1 This arises from the three party accountability discussed in chapter 1. The auditor is hired because users expect there may be such a conflict. If users completely trusted management there would be no need to have an auditor. This is the only way to detect fraudulent or misleading reporting. The logic is to reduce this potential to an acceptable level of risk. If the auditor assumed this risk was
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environment have been faced with challenges pertaining to allocation of resources that are inevitably scarce. As a rationale, any business is in place to create value for the shareholders and also be in a position to comply with the going concern principle of sustainability. This company has therefore enlisted the services of an MBA intern like me to help in formulation of strategies that could steer forward the operations ensuring the past occurrences of a recession are not a repeat. The three major
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67-69: Problems 3-23, 3-25, 3-26 2-7 (Objectives 2-2, 2-4, 2-5) Who is responsible for establishing auditing standards for audits of public companies? Who is responsible for establishing auditing standards for private companies? Explain. A. For public companies, the standards are established by the PCAOB, whereas the standards for all non-public entities are set by the Auditing Standards Board of the AICPA. The split between public and private entities occurred as a result of the passage of the
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have many takeaways and lessons learned. It is absolutely imperative that companies maintain their financial documents with as much accuracy and honesty as possible, and do their due diligence in taking whatever measures appropriate to have accurate financial data. If a company does not understand how to properly record revenue than it is their due diligence to comply with the accounting standards that are set and they must hire employee’s who understand how to properly handle the situation. The
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Social Responsibility ETHICS * Ethics concerns principles of right or wrong conduct * The moral principles and values that govern the behaviour of people, firms or Govt. regarding what is right and what is wrong * Being truthful * Demonstrating integrity of character * Not cheating customers * Not harming people and trading with decency BUSINESS ETHICS * Involves the application of general ethical principles to the actions and decisions of businesses and the conduct
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Psychology May 31, 2015 Ethical and Relational Leadership Principles Honoring the APA and TCS Codes of Conduct Licensed professionals in the legal, accounting, engineering, medical and other healing professions are held to a higher legal and ethical standard of professional behavior than people who work in other commercial, not-for-profit or government enterprises. As noted by the American Psychologists Association (APA) , “If this Ethics Code establishes a higher standard of conduct than is required
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a proposed new look Code of Ethics, based on the international Federation Accountants’ code, will ensure that New Zealand Charted Accountants meet their ethical responsibilities. Within this essay an adverse position will be taken towards the previous statement. The international Federation of Accountants (IFAC) states that, professional standards and the code of ethics form important benchmarks that should be met by practicing accountants. Accountants should understand and apply them when conducting
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Case Study: Ethical Issues in Business, Week 2 Keller Graduate School of Management ECON545, November 13, 2013 Price Discrimination An ethical issue that individuals face today involves the price war or price discrimination involving the airline industry. According to the legal definition of price discrimination: Price discrimination is the practice of charging different persons different prices for the same goods or services. Price discrimination is made illegal under the Sherman Antitrust
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Ethical Issues – Bill Services There are many ethical issues going on with Bill that will affect his business and our firm legally and financially. Here are some of the issues: 1) He is planning on filing for divorce. His wife, Rotunda is a large and violent woman who has spent every penny Bill has made over the years. She has a moustache, missing a few front teeth and generally not a nice person. Ethical issues: Bill and Rotunda’s marriage seemed to change after the
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1. DEFINITION INTERNAL CONTROL is a process effected by people at every level of an organization, designed to provide reasonable assurance about the achievement of objectives in the – effectiveness and efficiency of operations, - reliability of financial reporting, - compliance with applicable laws and regulations. A PROCESS: it is a multiplicity of processes, a series of actions, that is integrated with the basic management processes of planning, executing and monitoring in order to enable their
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