The findings of the audit are to be shown to the court. If the Defendant if represented by an attorney the court is asked the attorney be sanctioned; for withholding the findings of the courts request. If the Defendant represents herself we ask; the court rule in the favor of the Plaintiff
The CEO and each Senior Financial Officer shall report any information he or she may have concerning evidence of a material violation of securities or other laws, rules or regulations applicable to the Company and the operation of its business, by the Company or any agent thereof.
If board of directors decides to rectify previous frauds, they would investigate into the event, take appropriate legal action against people involved and disclose previous frauds with the previous and current year financial statements. If they decide to cover-up their fraudulent practices; they may warn me to stay out of this business or threaten to dismiss me. Both decisions would have differing effects on external stakeholders.
Conflict of interest is a “situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties as, say, a public official, an employee, or a professional.” (Chris MacDonald, Aug 2002) If left unchecked conflict of interest can put an individual in ethical and legal trouble. Conflict of interest usually occurs when a person’s personal interest is in conflict with his/her duty or employment. Conflict of interest is common in academia and the workplace because unscrupulous individuals can be easily corrupted. In this self-assessment assignment, I will discuss a time I have been in a conflict of interest and how it was resolved. When you find yourself in a conflict of interest it is important to ask “is this the right thing to do?” and “is what I am doing ethical?” Human beings are becoming more disconnected from personal interaction because of the internet and new technologies. This can cause a “me first” mentality among people, enabling unethical behavior and possible conflict of interests.
What steps should management, the Board of Directors, or the Audit Committee of the Board of Directors take in response to allegations of possible fraud or illegal acts?
Section 180 says that a person must perform his duties with care and diligence that a director of a company in same position and situation would perform. In this case, the board member negligently made a financial report and was shown profit instead of loss. Harvey one of the directors could not show the errors in the board while James who is also a non-executive director did not ask any questions regarding the
Presence of Board of Directors, Audit committee, Board’s compliance with the SEC’s Blue ribbon committee, independent and experienced board members, management’s oversight and audit committee’s annual review’s leaves very less room for opportunity for employee’s to commit any type of fraud and present misstated financial information.
Prior to a corporation or its employees taking action, it usually requires an informed legal advice. Legal direction may be either taken or dismissed; the point is that in order to provide an informed decision counsel and its direct reports are provided with confidential information. Counsel reviews the confidential information and provides an opinion on the issue. This opinion may or may not support the legality of a matter and the company may or may not act because of the information provided, however, the confidentiality of the initial information provided, the attorney’s thought process, as well as all reasoning associated with this process needed to be retained as confidential.
The aim of the organization is to make money for the shareholders and increase their profits. Companies tend to hold an annual meeting of the shareholders to discuss the progression of the business. Shareholders who identify issues within an organization in which they own stock may choose to meet immediately with the company’s board of directors. Once this meeting commences, they have the chance to point out deficiencies and find out what they plan to do to correct the matter. They may also offer input on methods to fix the issues that they are facing. For example, if staff shortage is a concern they can suggest hosting a job fair or teaming up with a staffing agency to increase the number of healthcare professionals. Another
| * David would breach S150 if he fails to prepare a “true and fair” audit report. * If David concedes to believe the CFO but not his own professional judgement, he fails to follow the regulations (S110, S120 and S140). It can adversely affect the good reputation of the profession.
Protecting the CPA profession is the MACPA PAC’s top priority. Every day we see headline grabbing issues focusing the attention of our elected representatives. Far from the front page; however, are issues that have serious affect on your livelihood and continued licensure as a CPA. The MACPA PAC is your watchdog against dangerous, uninformed government policy that threatens to harm the CPA profession.