working ethics (Northouse, 2012). Ethical Perspective describing PPI’s safety Approach PPI safety ethical approach is Utilitarianism since the firm utilizes the rule of end justified by the means. The firm knows the illegality of having external auditors, even though it stresses on consistency of having improved working environment. It views its past deeds the firms have been leveraging for the benefit of both the firm and its employees. External auditing is risk but PPI practice it to keep the firm
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2013) Question1 Should auditors insist that their clients accept all proposed audit adjustments, even those that have an "immaterial" effect on the given financial statements? Defend your answer. AnswerforQuestion1: • Auditors should not insist that clients accept all proposed audit adjustments. • Auditors are not perfect and clients should therefore have the right to reject proposed audit adjustments. • If a client does not accept a proposed audit adjustment, the auditor should generally be more
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of public company audits, including the attendant auditor liability regime. An analysis of the impact of AS5 is informative on at least two counts. First, it sheds light on the economic impact of regulation resulting from a political crisis. Second, AS2 and AS5 both specify standards for audits of internal controls over financial reporting. Relative to AS2, AS5 prescribes a more flexible, top-down risk-based audit approach and encourages auditors to incorporate their professional judgments about
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CASE 1.6 NEXTCARD, INC. Synopsis In November 2001, Arthur Andersen & Co. employees in that firm’s Houston office shredded certain Enron audit workpapers during the midst of a federal investigation of the large energy company. The decision to destroy those workpapers ultimately proved to be the undoing of the prominent accounting firm. A few years later, a felony conviction for obstruction of justice would effectively put Andersen out of business. Ironically, at the same time that
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determining planning materiality? [b] Why are different materiality thresholds relevant for different audit engagements? [c] Why is the materiality base that results in the smallest threshold generally used for planning purposes? [e] Why may the auditor use a different performance materiality amount or percentage of account balance for some financial statement accounts? Question [2]: Based on your review of the Exhibits (1 and 2), audit memos (G 3 and G 4), complete audit schedules G-5, G-6
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the information with regards to the ending inventory, and overstating it thereafter. The problem now arises on how they will have to cover up the fraud to their audit firm, BDO Seidman’s Long Island. BDO Seidman’s Long Island has long been the auditor of the company since it started. The company’s CFO, Drew Bergman, is originally associated with the audit firm even before HMI. He has been assigned to various engagements and one of those is the Health Management, Inc. itself. With this, Bergman
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Auditing 1:00-2:15 Enron Case Due 2/10/05 1. What is auditor independence and what is its significance to the audit profession? What is the difference between independence in appearance and independence in fact? Auditor independence involves the auditor and the company being audited. It requires them to maintain separate business and personal relations. This is imperative because personal feelings can hinder the ability of an auditor to perform the required tasks. Expectations and assumptions
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Academic Year: 2014/15 Module code: P13505, Level 3 Autumn Semester Module Outline: Auditing, Governance and Scandals (AGS) |Module Convenor |Dr. Kevin Dow, AB474 | |Lectures |Dr. Kevin Dow | | |TH 4:00-5:30, TB 329
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frameworks that regulate the receipts and pa;yments of public funds. (b) Audit Ordinance of 1956 or Act of 1956: section 13,sub- sections 1-3 mandate the accountant General of the Federation to finish the Auditor- general for the federation with the country’s financial statements. The Auditor- general shall within 60 days of the Accountant – General’s financial statements submit his report to each House of the National Assemble. (c) Finance (control & management) Act of 1958: This governs
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Issues •Bonuses & Stock Sale •Refusal to Accept the SECP Recommended Auditors •The Auditor’s Role SALES REPORTING POLICY The overall strategic development of management was focused on robust growth or the appearance of such growth. This led to Callmate recognizing revenue when the sale transaction of the prepaid calling card was completed as opposed to when the calling cards were utilized. Though the auditors advised them that the approach wasn’t in compliance with the international
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