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Dis 2-39

In: Business and Management

Submitted By jabroy
Words 290
Pages 2
Discussion 2-39

a) The implication of the illegal act of by Ultro management is wrong. During the year the company has taken money, 50,000 worth of foreign currency and smuggled it to another county. It is illegal to sell vehicles to people and then transfer money to an off shore bank account. Knowing that it may not be hard to trace is the only reason that the company is do such exchanges. The easier it is the harder it is to get caught.

b) The CPA establishes adequate quality control policies and procedures to provide reasonable assurance that it follows professional standards in every situation. The course of action would be to issue their securities in U.S. market to present financial statements in accordance with GAAP policies. Fraud is difficult to detect because it often involves concealment schemes such as forgery deliberate failure to record transactions, or intentional misrepresentation made up of auditors. It is very had to detect employee fraud because management in usually in a position to override the account records. The CPA should have the quality control established.

c) My course of action would be to have to fix what they have done wrong with smuggling the money into different accounts. They should set the money into the hand that it should be. Fix the financial statements and made them the way that they should be and go from there. They need to correct the estimates and detailed information. I think they should be punished for what they did by taking the money from the company, when due to economy everyone is suffering. Everything should be made right that when the money is needed it will be the there to work for everyone.

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