Part A: Conflict of Interest Conflict of Interest ElectroCo is a listed Company subject to Corporations Act and Listing Rules. The onus is on Company officers to act in good faith and not improperly use their position to gain an advantage for themselves or someone else. (Corporations Act 2001 Part 2D.1 s182). Attribute standard 1120 defines a conflict of interest as a person who has: * “A position of trust, has a competing professional or personal interest” * “Competing interest can
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prevented the backlash and whitewater effect of Nortel’s bankruptcy, but due to corporate ties within the government and the Securities and Exchange Commission the many CEO’s continued to elude the government auditors and the stakeholders. From an ethical perspective, there were several factors that contributed to the rise and fall of Nortel. The initial CEO and founder of Nortel, John Roth, demonstrated altruistic behavior because he did want the company to profit, the investors to profit, as well
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Chok Tong. . 2. Issues 2.2 Various issues have emerged as it brought to light many serious flaws. They are mainly conflicting stakeholders’ interest, poor governance, failure of board’s duties, lack of transparency, overpaid CEO remuneration and ethical misconducts. NKF saga was a result of conflicting interests from various stakeholders. Donors are interested in helping out the patients whereas the organization was seeking unjustified personal
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energy company based in Houston, Texas, and the dissolution of Arthur Anderson, which was one of the five largest audit and accountancy partnerships in the world. Enron collapsed in large part because of unethical practices of its top officials; they abused their power and manipulated information, and put their own interests above those of their employees and the public. Examining the ethical and social responsibilities of Enron and lessons learned from the collapse will be reviewed. Analysis To
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situation and to comply with the WHO code, the criticism to nestle should be stop. Since I have made too much discussion about how nestle is an ethical corporation with high CSR consciousness now I want to give another example — The Body Shop. The Body Shop International PLC is a global cosmetics company launched in 1976, which was predicated on ethical principles and the values of environmental sustainability, it can be seen as one of the first companies to prohibit the use of ingredients tested
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monitoring, which is perhaps the most critical part of a strong internal control system. Five components of internal control The Committee of Sponsoring Organizations (COSO) provides a framework in which to analyze a firm’s internal controls. Below are the five interrelated components of this framework: 1. Control environment - The top management is responsible for setting standards, processes, structure and accountability of the organization, resulting in the establishment of the control
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Introduction This paper investigates the act of Audit Committees in enhancing the act of external audit so as to gratify stakeholders’ needs. In present years, Audit Committee (AC) has become to be one of the mainstays in Corporate Governance system in British public companies. It plays a vital act by bestowing critical oversight of risk management in a firm across monitoring the integrity of its financial statements in conjunction to company’s financial performance. According to the Combined Code
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and influences. Another large issue facing accountants would be what is acceptable in Country A may be unacceptable from an ethical standpoint to Country B. An example of this, IGAAP is less stringent than U.S. GAAP regarding certain disclosures, therefore, how will the information be disclosed in order for investors and creditors to make informed decisions. From an ethical standpoint will companies chose to use IGAAP because it is less stringent and the disclosure will be less disclosed than it
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sufficiently independent to serve the public interest. Introduction As we will discover, the topic posed above is a complex one, which has many arguments both in favour and against the stability of the present regulatory environment in ensuring that the audits which auditors produce are indeed impartial enough to satisfy the public interest. We will first proceed in identifying the term “public interest” in light of the accounting and auditing profession. From this will be an explanation of what is the
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of performing their work. Ethical threats Self-interest threat It occurs when auditor could benefit from a financial interest in an audit client. Self review threat It occurs when the audit from a member or audit team put itself in a position of reviewing the subject that previously the member is responsible Familiarity threat It occurs when auditor has a close relationship with the client Advocacy threat It occurs when the audit from a member of the audit team promotes/support or may
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