Essay on Hamilton Wong, In-Charge Accountant, Case 6.3

An implicit theme of this case that I want students to recognize is the contrast between the persistent and vigorous efforts of David Sokol to “get to the bottom” of the suspicious items he uncovered in JWP’s accounting records versus what Judge William Conner referred to as the “spinelessness” of JWP’s auditors. The JWP audits were similar to most problem audits in that the auditors encountered numerous red flags and questionable entries in the client’s accounting records but, for whatever reason, apparently failed to thoroughly investigate those items. On the other hand, Sokol refused to be deterred in his investigation of the troubling accounting issues that he discovered. The relationships that existed between members of JWP’s accounting staff and the Ernst & Young audit team apparently influenced the outcome of the JWP audits. Of course, the Sarbanes-Oxley Act of 2002

If some research is undertaken that provides evidence that capital markets do not always behave in accordance with the Efficient Market Hypothesis, does this invalidate research that adopts an assumption that capital markets are efficient?

“Although it was not the internal audit department’s duty, Cooper decided that she and several others in her division would investigate the company’s financials on their own, performing what essentially would be a series of mini audits. She did not mention that task to any of the higher-ups at WorldCom; instead, she and her staff worked long hours, often through the night, as they pored over the books.” (Mead) On one side of things, people could see that Cynthia Cooper acted on two code of ethics principles that internal auditors are expected to apply and to uphold. One being her integrity, which states that “internal auditors establishes

Brent should talk to John about his issues. John may not have been aware that payables are a low-risk area and he could change the amount tested from thirty to twenty causing a decrease in man-hours. But John is the only one with the authority to make this decision. If John is unwilling to help Brent with his issues and concerns, Brent could discuss this with the manager above John, but should not test less or “eat time”. If I was in this situation I would discuss it with John because I would know that it is not in my power to make those kinds of decisions, and making those unethical decisions would have more adverse effects for the company on the audit this year and years to come that if he finished the audit over hours.

cognizant of the fact that the choices he makes can affect the price a buyer pays

This post will discuss two ethical accounting dilemmas that could occur in the CPA profession. For each dilemma, it will explain how the dilemma could be resolved based on logic and reason. It will then support that proposed resolution through support from the American Institute of Certified Professional Accountants (AICPA) Code of Professional Conduct.

Provided Case 09-3, we, Group 7 have dutifully researched the topic, using resources at our disposal to formulate a consistent, clear and legal response. The following submission outlines the case, our conclusions with supporting evidence and the accounting issues present in the subject.

According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the

2. Evaluate Andersen’s claim that their problems on the Enron audit were due to a few “bad partners” in the organization. If you disagree with this claim, discuss what you think were the root causes of the problem. I do not believe Andersen’s claim. I believe that they had full knowledge of what was happening at Enron. I believe that Enron was paying off the auditors (staffers) in the Houston office. I believe they were

a. The section includes major dates beginning with interim audit work through the issuance of an updated management letter. A total of 118 hours are budgeted for the audit.

The potential ethical dangers for an auditing firm that provides tax shelters for an audit client includes helping wealthy clients avoid

Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,

Either of Brent’s alternatives would probably work out fine for the present situation. The problem would be in the future. Changing the auditing plan would probably have the least negative outcome. The accounts payable audits have been fine for the last few years and chances are this year wouldn’t be any different. Both of Brent’s alternatives are unethical because they are both deceitful and both could cause potential problems down the road – one lie leads to another and the snowball keeps getting bigger. What Brent should do and how I would handle the situation is to talk to John. Explain to him

Erin should notify Smart Worx of the postponement as it is consistent with ethical principles of integrity and professional competence. As Erin is complying with these codes of ethics, she has nothing to lose or suffer as she followed the guidelines of the code and therefore cannot be

This includes the indirect ability of management to influence the career prospects of internal auditors, as well as the budget and planning of the internal audit function. This is exacerbated by internal auditors themselves using the function as a stepping stone to advance their career objectives. It also can be argued that the independence theory may be lost in such a culture, especially if it is combined with people within the organization perceiving internal auditors as partners, thereby subjecting the internal audit function to pressures threatening its independence, rather than recognizing the internal audit function as an independent assurance function("A Critical Analysis Of The Independence Of The Internal Audit Function: Evidence From Australia: Accounting, Auditing & Accountability Journal: Vol 22, No