James's Dilemma - to Resign or to Serve

The decision was made on the 13th of December 2013 that the appeal would be dismissed and the sentence upheld. (7) Explain the role of the legal representation: During Lane’s case there were many legal professionals

With different industry definitions and viewpoints, fraud can be a tough issue for audit committee members to grasp for oversight purposes. The legal obligations of audit committee members have intensified because their standard duty of care and loyalty to the entity has increased in light of management fraud activities.

Grant Thornton should be held liable for its reckless negligence because it ultimately prolonged Keystone bank’s ability to continue to partake in fraudulent activities. If the accounting firm would have held itself to GAAS, generally accepted as the minimum standard of professional conduct in performing an audit, Thornton would have known to exercise “heightened skepticism” during this high risk of fraud. Secondly, GAAS required written confirmations from third parties servicing assets in regards to a bank’s balance sheet. Not only did Thornton fail to obtain this written requirement, it also recklessly relied on an oral statement. GAAS also required in a high risk audit that monthly remittances of interest income on assets being serviced by

As the Vice President of Human Resource for Moore Beer, Inc., it is my duty and responsibility to direct all of Moore Beer, Inc. employees in accordance with the company 's policies and procedures as well as abide by all the laws that are put in place to protect employee’s rights. Moore Beer, Inc. has suffered a decrease in sales profits, as a result the company is reducing its workforce. The President of the company asked me to look into the five employees listed below and decide who to terminate as well as provide the reason why the termination is necessary. My job is to terminate three out of the five employees.

2 Managing fraud risk: The audit committee perspective Fraud in a fi nancial statement audit

Your managing partner has handed you the Supreme Court of Queenslands’ decision in The Public Trustee of Queensland and Anor v Meyer and Ors [2010] QSC 291 and asked you to answer the following questions. You should assume you are answering questions for someone who has not read the case, so be sure to provide sufficient detail in your answers. You do not need to provide reference details for Part A of the assignment.

Tom Tramlin should strategically plan but in his planning maintain fairness. Fairness will allow everyone involved their share of the rewards (Clawson, 2012). Joe Smith should reframe from making a judgment call, but instead concentrate of making Mr. Bateman comfortable enough in his ability

Ideally, his decision must maintain the firm’s no-layoff history, encourage the tight-knit company atmosphere, and draw as little negative attention as possible. As a new employee in his grandfather's business, he must prove himself worthy of the position he was recently controversially given. His first challenge is dealing with the declining performance of veteran employee, Russell Campbell, a strong-minded subordinate with a significant amount of influence within the firm. To make his dealings even more complicated, Russell is a

To opt out from the position if they can’t handle responsibility or the customer feedback

The stakeholders are the shareholders, managers, and employees. The current situation has caused a dilemma that affects all stakeholders equally. When the business is at risk, everyone involved should be concerned about the future of the organization. However, the responsibility falls to the senior leaders of the organization to solve the current issues. However, holding 80% of the company’s stocks is concerned not only about the organizations current issues but also with the value of his investment, as he gets closer to retirement. This creates an ethical dilemma due to his personal finances and retirement being directly affected by the company’s performance. In addition, the CEO believes that the status of the organization is not as bad as some of the senior leadership team would say. The shareholders interest is purely profit. The impact of how Huffman Trucking runs the business and implements change has a direct reflection on the company’s image.

AICPA Code of Professional Conduct principles prevents vises such as fraud that are experienced in accountancy field. Audit is the best measure of the effect of the fraud that are imposed to investors by accountants. The relationship of the investors and account holders are supposed to be affirmed through auditing to ensure accounting principles are upheld(Weirich, Pearson, & Churyk, 2010). Improper loss of the funds through propagation of the accountant officer should be treated as fraud and criminal activity that should lead to prosecution. Therefore, the paper seeks to relate two fraud cases that have been audited and presenting AICPA Code of

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

With the avalanche of accounting scandals that have rocked the public, people tend to have increasingly high expectation that auditors are accountable for detecting all frauds, while the standards require auditors to provide reasonable, but not absolute, assurance. The purpose of the report is to discuss the accountability of auditors in detecting fraud by analysing a $16.9 million fraud of Otago District Health Board (ODHB) perpetrated by Swann and Harford from 2000 to 2006. The report will explain the event, the fraud, the stakeholders, the role of auditors and the current situation.

Additional steps should have been taken by the auditors when they received the smudged fax copy printed on the Bank of America letterhead. As mentioned before, the evaluation of the evidence obtained is as important as requesting it. The firm did not confirm the forged documents with the bank; for this reason, the evidence remained unreliable and the forgery wasn’t revealed until later. Auditors should have been concerned with knowing where and whom the confirmation letters came from. Was the initial confirmation request mailed directly by Grant Thorton SpA or by Parmalat or was it obtained directly from the bank? Auditors should be aware that confirmations that are sent through fax are much less reliable than confirmations sent by mail. Their duty was to find out if the correct process was altered in any way.

Integrity might cause problems in this case as the main persons in this organization are family members and there are also family members with high functions in the bank and JRW Realty with which Prefab has close business relations. Moreover, the members of the audit and compensation committee are not all independent of the firm and therefore, the likelihood of fraud or material misstatements in the financial statements is quite high. The profitability of the engagement to the auditor should be considered as well. Due to the extensive investigation the auditor has to do, especially due to the relationships between the people at the top management and the independence of the audit and compensation committee, the profitability might be a concern. Furthermore, from the analysis of the business risks of accepting the audit it can be concluded that there are several severe problem areas in which fraud or material misstatements in the financial statements can take place. At the Prefab Sprout Company the risk of fraud or material misstatements is considered to be very high and therefore, the engagement should not be accepted.