Case Study 3-BMGT 203: Ramzey Alafley

Integrity. To me, integrity is being honest to others and to yourself. It’s to have moral uprights. It’s the state of being whole. It’s a word used to describe someone’s level of honesty. No one is gets integrity once they are born. It is developed by good influences actions. Having integrity is doing the right thing is a trustful way. Someone who has integrity means they have a moral compass that leads them in the right direction. They follow their moral judgements and do good things under all circumstances, even if no one pays attention. They would do nothing that dishonors themselves.

Compare the primary auditor objectives in auditing historical financial statements to auditing internal controls over financial reporting. Identify at least two (2) objectives that are the most significant in reducing the risk of reporting errors or misstatements in financial statements. Provide a rationale for your response.

Integrity, the quality of being honest and having strong moral principles. John Adams had integrity, an important aspect in his business. Integrity is important because if you are true to your word you will be honest to your self, so what made John Adams have that integrity?

Integrity is having a strong moral compass and knowing where your place in the world is.

“ In order to prevent fraudulent financial reports and statements, the American Institute of Certified Public Accountants(AICPA) has created ethical standards” (Ethical standards in a financial statement, 2011). These standards aim to make financial professionals accountable for their accounting practices. This includes the integrity of financial reporting and ensuring financial reporting is done fairly and factually. Financial accountants and professionals should maintain professional integrity, objectivity, and independence to reduce the risk of resulting legal action, loss of profits, and a poor reputation if improper financial reporting is done (Ethical standards in a financial statement, 2011).

Highly valued by higher achiever in life, quality character is an extremely important aspect when considered and valued in a person. I believe that, in addition to this, integrity

Integrity is also very important. Having bad integrity could make you very non-trustworthy to others. Having good integrity would make you very trustworthy to others. Knowing how important they are, you should always have good or even better character, morals, and integrity.

A person of integrity does exactly what he says and says exactly what he means. There is no conflict between his thoughts and actions. His actions are consistent with the values he professes. According to Dr. William Manninger, A building without integrity may receive structural damage, or even collapse, in a storm. Similarly, people without integrity are blown about by the winds of misfortune and destroyed by catastrophes, for they lack the firmness, solidity, and strength of character to weather any storm. This means that integrity is one of the six essential qualities that are the key to success.

A person with integrity is humble – He is more concerned about what is right than about being right. He recognizes principle and puts it ahead of self.

The Model of Trust Enhancement was established to enhance and maintain the public’s trust in the accounting profession. Over the last two decades, the ethics of the accounting profession has been questioned and public trust destabilized, in particular for auditors, due to the Enron debacle. The fact that an auditing firm would assist their clients with publishing an inadequate set of financial statements shows their willingness to violate laws and regulations (Sims & Brinkmann, 2003). According to the textbook, “Because trust is essential, even the appearance of an accountant’s honesty and integrity is important. The auditor, therefore, must not only be trustworthy, but he or she must also appear trustworthy” (Duska, Duska & Ragatz, 2011, p. 116). The majority of statements filed inadequately have a substantial impact on the credibility of the accounting profession as a whole. Sullivan (n.d.10) states that a CPA must possess a high level of trust, by applying professional judgment and enhancing the three trustworthy characteristics (ability, benevolence, and integrity) when resolving accounting ethics dilemmas (slide 3).

C.S. Lewis defined integrity as doing the right thing when no one is looking. That has been one of my greatest lessons as a professional and as a small business owner.

Integrity – Accountants should always ensure that they are honest and straightforward in their activities with every instance that they have clients. They should always maintain the lines of duty and maintain business relationships during all official duties (Nobes, 2015).

This case study will analyse the ethical dilemmas faced by David, audit manager at C & A who is hired to do the financial year-end audit for MAL. The six step ethical framework will be adopted to gain an understanding of principles and obligations for analysing the situation faced by David and arrive to a professional and responsible resolution.

Integrity also can be defined as meaning of someone of high moral character who is always stick with the principles no matter the pressure ought to do otherwise. The straightforward in dealing with any relationships with the constituencies or different people is very crucial because trust is vital in every relationships and belief in the integrity of those with whom you are dealing. For the integrity in corporate governance is more or less required in financial reporting because it should be present with a balanced picture of the company matters and also it should be honest. According to the Cadbury Report, the integrity in presenting the reports in depending on the integrity of whom is preparing such

witnesses also are included in the case. The primary issue in this case (drawn from actual