Lecture 3 Ethics in Finance Example QS

Ernest and Young cleared Wirecard’s reputation back in 2008 and BaFin, the German financial regulator, continually supports Wirecard. Critics of Wirecard were investigated by BaFin.   Suggest course of action (s) to prevent discrepancies in the financial resultsreporting to ensure that such scandal will not arise in the near future. Make sure your answers in paragraph not less than 500 words. Thank you

Auditors have been blamed for the ongoing financial sector challenges in Ghana. Some critics suggest that audit practices are inherently rigid, and the methods too obscure to have mitigated these failures. Others argue that auditors are unfairly criticized. Where do you stand? Justify your answer with sound reasoning. (2500 - 3000 words needed).

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provide an example of a country that has been able to curb/ significantly reduce their corruption levels in modern history (i.e., the last 50-100 years). What factors contributed to the ability to accomplish this? How did this positive trend impact the country’s overall development, including its economic development?

NOTE: PLEASE TAKE YOUR TIME AND ANALYSE THE QUESTION VERY WELL. PROVIDE DETAILED INFORMATION ANSWERS AND INFORMATION AS YOU SOLUTION. THANK YOU.   ‘To stall the rot in the public sector in Ghana, more value must be placed on the work of the internal auditors, than on the assurance works of external auditors including the Audit Service of Ghana’. Do you agree with this assertion? Support your answer with relevant considerations with the legal framework that governs the public sector accountability.

The auditor worked for this client for years. But before accepting or continuing with the client, What are the reasons the auditor or audit firm should or should not retain this existing client this time around using the information below about the client? What risks could the client, its business, and its environment pose to the auditor or audit firm? The client: Although client cash flows have been stable, the disruption caused by the 2020 global pandemic made it difficult for retail lessors to pay their rent on time. Due to the company's tenant-friendly approach, retail clients were allowed to renegotiate their lease and temporarily pause rent payments between June 2020 and July 2021, shifting those payments to the last 12 months. Most of these leases will expire in the next two years, including all retail companies unable to pay their rent. However, they estimate that they will receive all the lost cash flow from these tenants within a couple of years. Currently, the company is a…

Explain the ‘audit expectation gap’. What causes the gap? b: Potter and Partners are a chartered accounting firm with offices in capital cities in most states. The head of the business development department is seeking to grow the firm’s revenue from non-audit services.   Required: What non-audit services could a chartered accounting firm provide to its listed company clients? Explain why a company would buy these services from its audit firm instead of another consulting firm.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Unlike some other countries, why do you think Malaysia has not experienced so many cases of its company auditors being brought to court for the audit done on a company’s financial statements? Related to this, what are your suggestions to improve the learning and practice of audit in the country?

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Who among the following CPAs would be only a MIB, and not also a MIPP? Group of answer choices a. Tony, who is an auditor on the staff of his state agency's audit unit. b. Alicia, a tax accountant for the ABC Accounting Firm whose primary responsibility is toprovide tax consulting advice to ABC's largest client, Microhard Corporation. c. Adnan, a volunteer at a local homeless shelter who keeps the nonprofit's books. d. Julietta, an auditor for the DEF Accounting Firm and senior partner on the audit team forMega Corporation.

(1500 words)

119-Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of a. Advocacy threat b. Familiarity threat c. Self review threat d. None of the options

What impact did the Asian financial crisis in the late 1990s and the corporate scandals in the United States in this century have on the auditing profession? Multiple Choice Reputation for being the watchdogs of financial reporting integrity was reduced. CPAS were no longer allowed to provide external audit services for multinational corporations. O Regulation of the external auditing profession was reduced External auditors were required to sit on the boards of directors of multinational corporations. S What impact did the Asian financial crisis in the late 1990s and the corporate scandals in the United States in this century have on the auditing professioni Reption for being the watchdogs of financial reporting integrity was reducied C Regulation of the evema autsing profession was reduced CM were no longer allowed to provide sinemal uit services for mutnaloal corporations Exaludos were required to sit on the boards dreoms of mutinational corporations

the answer is just without explanation A or B or C or D ???

). You have recently been approached by a retail company, Canning Limited to provide audit and tax services. You have contacted the outgoing auditor to request for any matters which might prevent you from accepting the assignment. This request has been followed up with phone calls with no response received from the outgoing firm. You held a discussion with the company’s management team and you became aware that the last auditor resigned due to dispute over unpaid fees from the last audit assignment. The Management of the Company were of the view that the previous auditors were too materialistic. Required: Identify the professional issues that needs to be dealt with before accepting the audit assignment

You are the outsourced internal auditor of a large multinational company operating in the energy sector. Your company has operations in 30 different countries, some of which are developing economies, and it has raised debt finance, as well as equity finance, in 15 of these countries. You are aware that there has been protests from environmental lobby groups in several areas regarding oil pipelines. There has also been demonstrations about the impact of operations on local communities. Your company has an audit committee, and a reasonably well-developed system of internal control loosely structured around the Turnbull Report's recommendations. However, the board has decided that perhaps it should form a new committee, a 'risk committee', which will deal with risk management and internal control specifically. Required: The Board has requested a report, which explains and identifies the main risks facing the business currently, and the relative importance of these risks to the business,…

Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of _________________. a. None of the options b. Familiarity threat c. Self review threat d. Advocacy threat Clear my choice

You are an auditor in Andy & Gary Associates, a mid-tier audit firm. You are deciding whether to continue with the audit engagement of Neville Ltd. Since the previous audit, the company has listed on the Australian Securities Exchange which requires it to comply with additional reporting regulations. Due to rapid growth, Neville Ltd is financially stretched and its accounting systems are struggling to cope with the growth in the business. You recently read an article in the Australian Financial Review, which stated that Neville Ltd is currently under investigation by the Australian Taxation Office (ATO) for alleged failure to pay the appropriate amount of Pay As You Go (PAYG) tax on their payroll.   Required: Explain four (4) matters you should consider before continuing with the audit engagement at Neville Ltd.

Question 2- PART AAuditors can only control the level of detection risk as the inherent risk andthe control risk are out of auditors’ control. PART A Requirement:Discuss the differences between the three types of risks with an explanation of why auditors can only control the detection risk.   PART B  You are currently planning the audit of your client, DEF plc. Its year end is 31December 2019 and the forecast profit before tax is £15.5 million. DEF has a small internal audit (IA) department. During the year, IA started a programmeof physically verifying the company’s assets and comparing the results to the non-current assets register, as this type of reconciliation had not occurred for some time. To date only 15% of assets have had their existence confirmed as IA has experienced significant staff shortages and several members of the current IA team are new to DEF plc. Inventory is held in six locations and on 25 and 26 December a full inventory count will be held with adjustments for…

3.3) You work for the Chartered Accountancy firm Bevan&Bevan Ltd, which has, for many years, been engaged to perform accounting and corporation tax work. Currently, you have discover that some practices are incorrect, and some behaviours could even be label as tax evasion. Required: Explain the code of conduct and its importance for preventing such behaviours and actions that could be taken.

Assume that you are an independent auditor who runs your own auditing firm. Majan Company was your client last year who engage another independent auditor this current year because of some independence issues with your firm. Last year, you know that Majan Company was having less profit because of competition with a newly established company · the Teejan Company which -- is now selling their business. Because of this reason, Majan wants to offer to buy Teejan. Two months ago, Home Depot Company became your new client. Home Depot Company's managing director came to you to discuss that they intend to buy Teejan Company. They know that there is another company who wants to buy Teejan too, but they are not aware that it is Majan Company. They also don't know that you were Majan's previous auditor. You are aware of Majan's problems and you know it will help them to recover profits if Majan will be the one to acquire Teejan Company instead of Home Depot. Which ethical principles will be least…

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Goldworld Mining Inc. (GMI) is a new, privately owned gold mining company that willprepare its financial statements using ASPE. GMI’s head office was set up in theNorthwest Territories, but it also began mining operations in the United States andSouth America. There are only two individuals in GMI’s accounting department: acontroller and an accounting clerk. GMI’s chief financial officer has some doubts aboutthe controller’s understanding of complex accounting issues given some errors thatwere identified in the last few months.GMI has a loan outstanding from RD Bank that has two loan covenants: GMI’sdebt-to-equity ratio CANNOT exceed 1.5:1, and GMI must maintain a current ratio of atleast 2:1.GMI requires additional capital to finance its operations and is planning on going publicin the near future. GMI’s controller is preparing GMI’s first set of annual financialstatements for the current year ended December 31.Required:Evaluate the two accounting options available for GMI to report…

4.Which of the following define lowballing:Single choice.   Offering the client a low fee in the hope that they will tell others and increase the auditors client base. Offering the audit at an artificially high fee to ensure that a good margin is made on the fee Offering the audit an artificially low fee in order to get the work before increasing fees later or offering other services to the client. Offering the client tax services only.

Impact of Sarbanes–Oxley Act. Your long-time client, Central Office Supply, has beenrapidly expanding, and the board of directors is considering taking the company public.CEO Terry Puckett has heard that costs of operating a public company have increased significantly as a result of the Sarbanes–Oxley Act. Puckett is particularly concerned withreports that audit fees have doubled because of internal control provisions of the act andPCAOB Auditing Standard No. 2201. Puckett has asked you to explain the possible effectson the audit of complying with the requirements of Sarbanes–Oxley.Required:Draft a letter to Puckett outlining the changes in the company’s responsibilities for internal control and changes in the audit due to Sarbanes–Oxley and PCAOB Auditing Standard No. 2201

Use the three-step approach to analyse the following ethics-related issues using APES 110 and Corporations Act 2001. An audit senior, John Smith, is in the engagement team of ABC Bank, and he also has a mortgage account with the bank worth $500,000. John is paying an interest of 2.2% to the bank. The current market prevailing interest rate is between 1.9% and 2.3%.