...Board: How are board members selected? Has specific criteria been established for selecting new board members? This is an important question to add to the audit because there should be a set list of criteria of what the board and the director are looking for when looking for new members. This way only the right people get the right job. Staff: How are staff members held accountable for their actions? Are there clear procedures for disciplinary action? This is an important additional audit question because all employees should be treated equally including when dealing with performance and disciplinary issues in the workplace. Clear policies would help guide managers in discipline to attempt to avoid favoritism, retaliation, or other unfair practices. This would ensure consistency. Donors and Fundraisers: If fundraising for a non-profit, are donors provided with the proper paperwork for claiming charitable deductions on their taxes? This is an important question to put on the audit if working with a non-profit organization. There should be consistent paperwork provided to donors for tax filing purposes. Clients/Customers: What is the policy on files of former clients? How long are files kept and are they properly destroyed? This is an important question to add because most of the questions are concerning current clients. There is a question about the confidentiality of clients but I do not think it covers or is clear enough about dealing with the confidentiality of...
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...an ethics audit committee • Define the scope of the audit • Review the organizational mission, goals, and values • Collect and analyze relevant information • Verify the results through an outside agent • Report the findings to Audit committee, managers, and stakeholders Secure Commitment of Top Management and the Board: • first step in the auditing process Top management may want a way to benchmark their ethical performance • The board may Initiate audits based on stakeholder concerns or in response to corporate governance reform Have been held responsible for the ethical and legal compliance programs of the company’s they oversee Establish an Ethics Oversight Committee: • Ideally, the board of directors’ financial audit committee would oversee the audit In most companies, managers or ethics officers’ conduct it • Individuals within the firm and external auditors should be involved An external auditor should not have other consulting or conflict-of-interest relationships with top managers or board members Define the Scope of the Audit The ethics audit committee should establish the scope of the audit and monitoring progress • Scope is determined by the type of business, risks faced, and the opportunities to manage ethics Includes defining the key subject matter or risk areas that are important to the ethics audit as well as the bases on which they should be assessed Review Organizational Mission and Goals • Ethics audit compare...
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...on the part of the public in the accounting profession. Lists the parties who you believe are most responsible for the crisis. Briefly justify each of your choices. The debacle of Enron, a US firm is looked upon as the worst debacle and fall out in the history of US bankruptcy filed cases. There are many parties involved when it concern to Enron debacle, which was accorded to accounting instability and the compromising factor of accounting profession itself. Out of the many parties in the league and the major force behind the debacle of Enron concern Andersen's, the accounting and auditing firm that once deserved name in the industry for its conscience in accounting professional services and auditing. As the case relates to, accounting audit for Enron is attended by Andersen's since long enough. However, the interesting feature is that some compromise in the profession of accounting services by Andersen's was notable, given that there are noteworthy feature of stock manipulation, especially in financial statements of Enron attended and audited by Andersen's. The statement and restatement of Enron also gives some probable indication for manipulation of accounting, where debate and counter debate in that regard from the prying eye of the media was a common feature. Thus, the involvement of Andersen's in Enron consultancy and professional auditing makes it rather more imploded for the direct involvement of Andersen's that also successively ushered the debacle and bankruptcy of...
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...Enron Corporation (Case 1.1) Most of us work from rags to riches but this is not the case of the Enron Corporation. Instead of becoming the nation’s greatest company, Enron instead laid claim to being the largest corporate bankruptcy in the history. The greediness and egotism wiped out the honesty and integrity that should instill on the persons who were involved in this case. Arthur Edward Andersen built his firm, Arthur Andersen & Company, into one of the largest and most respected accounting firms in the world through his reputation for honesty and integrity. His motto was “Think straight, talk straight” and he insisted that his clients adopt that same attitude when preparing and issuing their periodic financial statements. Arthur Andersen’s auditing philosophy was not rule-based; instead he invoked a substance-over-form approach to auditing and accounting issues. He avidly believed that the primary role of the auditor was to ensure that clients reported fully and honestly to the public, regardless of the consequences for those clients. Ironically, Arthur Andersen & Co.’s dramatic fall from eminence resulted from its association with a client known for aggressive and innovative uses of “accounting gimmicks” to window dress its financial statements. Enron Corporation was the second largest client of the firm and was involved in large, complex transactions with hundreds of special purpose entities (SPEs) that it used to obscure its true financial condition and...
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...Question 1 Who is permitted to act as the auditor of company under the Companies Act 1965? Under section 9(1) of the Act, a person is prohibited from acting or accepting an appointment as the auditor of a company if he is: Not an approved company auditor => Section 4 ( Definition ) and section 8 - Company auditors and liquidators to be approved by Minister charged with responsibility for finance . Indebted to the company or its related company in an amount exceeding RM 2,500. An officer of the company. A partner, employer or employee of an officer of the company. A partner, employee of an employee of an officer of the company. A shareholder of a corporation whose employee is an officer of the company, or Responsible for or if he is the partner, employer or employee of a person responsible for keeping the members’ register or the register of debenture-holders of the company. a) b) c) d) e) f) g) Question 2 : For professional accountants in public practice, what are the circumstances that are likely to pose a conflict of interest with the client? Conflict of interest often arises in situation when a professional accountant in public practice competes directly with the client or is in business relationship with a major competitor of the client. Conflict of interest is also likely to arise when a professional accountant performs services for clients who are in dispute with each other or whose interests are in conflict. Question 3 : For each of the following situations, discuss...
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...“Ethics Audit Benefits.” Please respond to the following: Compare (1) the benefits associated with conducting an ethics audit against (2) the challenges of measuring nonfinancial performance and the risks inherent in ethics auditing. Ethics audit is a systematic evaluation of an organization’s ethics program to determine if it is effective or not. Effectiveness of programs and polices can be improved and organization can identify potential risks and liabilities and can improve its compliance with the law (Ferrell, Fraedrich & Ferrell, 2011, pg.243-245). The ethics audit, like the financial audit, should be conducted regularly rather than in response to problems involving or questions about a firm’s priorities and conduct. The process of auditing and reporting a firm’s ethics programs is no guarantee that it will avoid challenges related its efforts. In addition, because this type of auditing is relatively new, there are few common standards to judge disclosure and effectiveness or to make comparisons. The auditing process can also demonstrate the positive impact of ethical conduct and social responsibility initiatives on the firm’s bottom line, convincing managers and other primary stakeholders of the value of adopting more ethical and socially responsible business practices. Determine if it would ever be better not to conduct an ethics audit. Explain your rationale. Ethics audits help know the ethical goals and standards that need to be achieved. These...
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...Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Table of Contents Chapter 1 Integrity: The Basis for Ethics in Accounting 1 What Is Ethics? 1 Definition 1 Application of Ethical Reasoning in Accounting DigitPrint Case 33 32 Conclusion 34 Discussion Questions 34 Endnotes 36 Chapter 2 Cases 37 2 Case 2-1: A Faulty Budget 38 Case 2-2: Better Boston Beans 39 Case 2-3: Eating Time 40 Case 2-4: Is Internal Whistle-Blowing "Right"? Case 2-5: Play Ball 43 Case 2-6: Supreme Designs, Inc. 44 Case 2- 7: The City of West Buckle 46 Case 2-8: The CPA Review Course 47 Case 2-9: The Ethics ofiPod-ing 48 Case 2-10: The Tax Return 49 Distinguishing between Ethics and Morality Religious and Philosophical Foundations of Ethics 3 Teleology 4 Deontology 6 41 Acting with Integrity Personal Integrity 8 7 The Moral Point of View 7 The Six Pillars of Character.... 8 Trustworthiness 8 Respect 10 Responsibility 10 Fairness 11 Caring 11 Citizenship 12 Chapter 3 Ethical Decision Making in Business 50 What Is Business Ethics? 51 Ethical Issues in Business 51 Virtue, Character, and CPA Obligations 12 Scope and Organization of the Text 12 Conclusion 14 Discussion Questions 14 Endnotes 15 Chapter 1 Cases 17 Case 1-1: A Student s Dilemma 18 Case 1-2: Giles and Regas 19 Case 1-3: Jason Tybell 21 Case 1-4: Lone Star School District 23 Case 1-5: Reneging on a Promise 24 Foundations...
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...| UCSI UNIVERSITYFACULTY OF BUSINESS AND INFORMATION SCIENCE (FoBIS) | Teaching Plan 1. | Unit Code &Unit Title: | BB219 Management Ethics | 2. | Course of Study: | Bachelor of Business (Hons) Business Administration | 3. | Year of Study: | Year 2, Semester 2 | 4. | Year and Semester: | Semester May, 2015 | 5. | Credit Hour & Contact Hours: | 3 credit hours Lecture: 21 Hours Tutorial: 21 Hours Practical: | 6. | Lecturer: | Associate Professor Dr Intan Osman Email: Intan@ucsiuniversity.edu.my | 7. | Tutor: | Associate Professor Dr Intan Osman | 8. | Mode of Delivery: | LectureTutorial | 9. | Objectives: | * To provide students with a valuable source of reference on issues surrounding corporate misconducts and ethical principles and theories * To provide an understanding of how ethical theories can be applied in everyday individual and corporate undertaking. * To develop students’ appreciation of how an ethical manager may influence or drive a company towards being a responsible corporate entity. | 10. | Learning Outcomes: | Knowledge * To gain the background information on ethical principles and theories * To link the day-to- day events and issues faced by corporate to ethical dilemmas * To develop a strong appreciation of a range of significant issues, and case studies which demonstrate ethical dilemmas faced by large and small corporations * To select and apply theories...
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...To resign or to serve Background of case: The Prairieland Bank was a medium-sized, Midwestern financial institution and their management have a good reputation for backing successful deals. Since their profit was decrease, it has caused their management start to renegotiate many loans. Ben Hunt who is the audit partner on the Prairieland Bank was concern to give an opinion on the fairness of their business financial statement. This is because the provision for doubtful loans is too low even they have taken many loans. During the interview to discuss this problem with the CEO and Vice President of finance, he was told that they already know it but they didn’t want to increase the provision as their profit will decrease. In addition, Ben was told that they had approached a company that provided insurance to protect their leased equipment. So, any default on their loans was made up from the insurance company and because of this too they didn’t want to increase their provision loans. Due to this problem, Ben has find James London which his senior partner on his firm to seek consultations from him. They decided that the best course of action was to visit the client and indicate theirs intend to resign, which they did. By coincidence, James meets Jack Lane who held responsibilities similar to his own at one of the competing firm. Jack is actually is a new auditor who replace their position in Prairieland Bank. Issues from the case: The issue from this case is whether James should resign...
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...Ethics Audit Framework Essay # 3 Stephen Randall Texas A&M University – Central Texas Professor: Marshell J. Silva Ethics Auditing Ethics auditing by definition, an ethics audit is a “systematic evaluation of an organization’s ethics program and/or performance to determine its effectiveness.” This concept of ethics auditing is fairly new and few companies have conducted an ethics audit. However, performing such audits will likely become more mainstream as recent legislation encourages greater ethical accountability for companies to demonstrate they are abiding by the law and have established programs to improve their ethical decision making. The U.S. Sentencing Commission (the “Commission) has amended the Federal Sentencing Guidelines for Organizations (“FSGO”) whereby an effective compliance and ethics program must “exercise due diligence to prevent, detect, and report criminal conduct and otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with all applicable law." The Commission noted there are seven minimum requirements of an effective ethics program, standards and procedures to prevent and detect criminal conduct; Responsibility at all levels of the program, together with adequate program resources and authority for its managers; Due diligence in hiring and assigning personnel to positions with substantial authority; Communicating standards and procedures, including a specific requirement for training...
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...explain the process/ method that I used for selecting each of the scenarios. I will also discuss the advantages and disadvantages of the respective scenarios, as well as the financial, legal, and ethical considerations of the scenarios. I will conclude with my recommendation on which scenario we should follow and give you the arguments why. The core of the problem that we are dealing with is that we owe the customer but the product we currently have is defunct. To generate the respective scenarios of how to deal with this problem, the members of my team and I sat down and brainstormed on the possible actions to take and their considerations and consequences, basically asking ourselves the question: what are the different actions we can take with the whistles. One associate asked us the question: “Imagine...
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...auditing and assurance services as well as to understand the auditor ethics and responsibilities. Also, it helps students to understand the basic concepts that underlie the audit process and how to apply those concepts to various audit assurance services. Through the first part of auditing course, much attention is given to the conceptual, theoretical and practical aspects of auditing financial statements. This course will also examines auditing theory and practice, emphasizing audit standards in Indonesian context, audit risks, materiality, characteristics of evidence, internal controls, auditors’ reports and professional ethics, sampling, and audit programs. Course Objectives After completion of this course, students are expected to be able to: 1. Understand why there is a demand for auditing and assurance services 2. Differentiate between auditing and accounting 3. Understand the relationship among auditing, attestation, and assurance services 4. Know the different types of auditors and their types of services 5. Understand the issues currently affecting the profession 6. Understand generally accepted auditing standard and their relationship to standard auditing 7. Understand the relationship among financial statements, management assertions, and audit objective 8. Demonstrate to develop audit procedures to achieve audit objectives 9. Apply various sampling methods in audit procedures 10. Learn the major phases of the...
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...CHAPTER 5 MAS PRACTICE STANDARDS AND ETHICAL CONSIDERATIONS I. Questions 1. “Role” refers to the relationship of the CPA as a consultant to the client management and personnel. The basic role of the CPA in performing MAS is to provide advice and technical assistance to the client. 2. Practice standards are necessary in the consulting practice in order to promote the highest quality of performance of the practitioner. 3. Refer to page 71, par 2 4. Refer to page 71, par(s) 4 and 5 5. Refer to page 72, par 3 6. Refer to page 73, par 1 7. Refer to page 74, par(s) 2 to 4 8. Refer to page 75, par(s) 2 to 6 9. Refer to page 75, par 4 II. Multiple Choice Questions |D |D | | | |A |C | | | |C |D | | | |D |D | | | |D | | | | III. Cases Case 1 Nondisclosure is not considered an acceptable alternative because it makes you an accessory to the fact. Disclosure to the offending party only - with no action - may...
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...Running Head: General Dynamics Ethics Program General Dynamics Ethics Program General Dynamics Ethics Program Abstract General Dynamics Corporation is ranked 291 amongst the World’s Fortune 500 Companies. General Dynamics maintains the highest ethical standards in business practices and employee relations. Its formal ethics program started in 1986 and applies to all employees. The ethics policies of General Dynamics clearly state the company’s expectations of all employees’ when conducting business with customers, suppliers, or each other. They practice and reinforce the ethical principles of integrity, honesty, respect, and the prohibition against retaliation for any person who raises in good faith an ethics or compliance issue. The core business ethics principles of General Dynamics is to use assets wisely; offer a fair deal; deliver on promises and earn a fair return. The company strives to detect unethical conduct early. The ethics program includes a 24-hour-a-day, seven-day- a-week, confidential Business Ethics Helpline. Recovery and crisis management are a fundamental part of the ethics network if and when the time arises. General Dynamics is prepared to stay out in front of possible ethical dilemmas and portray their ethical vision and goals from all levels within the organization. Background The Chief Executive Officer is Mr. Jay Johnson and they employ over 90,000 personnel. General...
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...A Code of Ethics DB Management Consultants is in business to serve non-profit clients with excellent management consulting skills and expertise that are essential for pursuing our client's goals. Our honesty and service is what we are all about and honest ethical behavior is our main priority. At DB Management Consultants we expect all of our employees, managers to behave ethically to company standards. If company ethical standards are violated than the employee can face disciplinary action and termination of his or her employment. The fulfillment of ethical rules and policy is a fundamental element to our Ethics Program- that pertains to DB Management Consultants; furthermore ensures compliance to rules and regulations within the company. Honesty and Service Integrating honesty and service means high morality; with customer satisfaction and good execution of work. Having a high morality shows proper care for people in our communities and socially responsible. Ethical Behavior DB Management Consultants employees and staff are expected to be honest and candid in their communications with their managers and with one another. When dealing with clients, government entities and the general public we need to act to the utmost level of personal integrity and promote in onto others. Employees must not be dishonest, deceiving or steal. All of DB Management Consultants employees must refrain from these illegal actions that can give our company a bad name. Quality Work and Customer...
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