Answered: Discuss ethical considerations in…

Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements for the directors of the company when signing off on company reports.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 25TFQ

See similar textbooks

Related questions

Q: Draft a qualified and unqualified audit report for the shareholders of the company

A: When independent auditors find that financial statements contain serious misstatements, but the…

Q: Which of the following would not be considered confidential information obtained in thecourse of an…

A: In the course of an engagement, there are some confidential information for which client's consent…

Q: What are the prohibitions in the Code of Ethics for Professional Accountants

A: The International Code of Ethics for Professional Accountants, (including Worldwide Independence…

Q: What are the ethical and professional expectations for CPA's by the accounting prefession?

A: Auditors work on behalf of shareholders and various other stakeholders; whereas, they are required…

Q: Set policies on internal control Both c) and e)

A: Answer - Set policies on internal control Both c) and e)

Q: understanding of the entity’s internal control

A: The understanding of internal control is necessary to rule out the possibility of material…

Q: Explain the steps that should be taken by an internal accountant/CMA when there is a difference of…

A: When the CMA has difference in opinion between with one's supervisor regarding an accounting or…

Q: roles of directors of the company and the role of auditors using the categories

A: Roles of Directors of the Company To choose the directors of the firm is vested in the hands of the…

Q: Which part of an annual report is audited by external auditors or independent auditors? Select one:…

A: The auditor is a personal who analyses the documents and inspect them for any error and provide any…

Q: The annual report to the shareholders and the 10-K to the SEC should provide an accurate reflection…

A: Financial information: Every business records the financial transactions in the accounting books.…

Q: What additional constraints and obligations do auditors face when doing nonaudit services for public…

A: Audit: The auditing process is the examination of financial statements for conformity.

Q: Why do you think the SEC requires companies to disclose fees paid to independent accountingfirms for…

Q: auditor’s written management representation

A: Option A is wrong because written representations are not made for cost-benefit justification.…

Q: Which of the following may not be the possible sources of obtaining information in respect of…

A: Preliminary engagement activities are those activities that are helpful in reducing the risk of…

Q: What are the main issues to be addressed in a business code of ethics required by the Securities and…

A: Definition: Ethics can be defined as conduct adopted by an individual in making the selection…

Q: Directions: Please select the appropriate answer on the statement below; T - If the statement is…

A: Code of ethics means the rules and regulations which are to be implemented under the ethics. A firm…

Q: It is important that management accounting follow certain ethical principle. Please specify which of…

A: Answer:- Management Accounting meaning:- Managers of the company use the information related to…

Q: Most companies are required to have an audit and appoint an auditor. (a) Explain how an auditor can…

A: Introduction: An auditor verifies the accuracy of recorded business transactions. Auditors are…

Q: Explain the principles of agency theory and discuss the ethics of directors being able to decide…

A: The directors of the company will take care of any important decisions in the company. The company…

Q: The pre-engagement activities of an audit engagement for a public accounting firm include: * Client…

A: Pre-engagement activities of an audit include: Client acceptance or continuance procedures…

Q: Explain who is considered a “director” of a company and how a director may be resigned from his…

A: Directors are a group of people, collectively called board of directors, appointed by the company to…

Q: Explain the role of audit report in company.

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Expound this statement: The Board should adopt a Code of Business Conduct and Ethics, which would…

A: A code of ethics is a collection of rules that professionals must adhere to to conduct business in a…

Q: What additional constraints and obligations do auditors face when offering nonaudit services to…

A: The following is an explanation of what we mean by the Audit: A company's financial accounts are…

Q: Pickens and Perkins, CPAS, decide to incorporate their practice of accountancy. According to the…

A: According to the AICPA Code of Professional Conduct: this is an acceptable form of organization…

Q: Who makes recommendations in relation to appointment, reappointment and removal of external auditor?…

A: Introduction: Auditing: Auditing means inspection of processes and Accounting books to eliminate the…

Q: which of the following does the audit committee have unconditional authority to do? Audit the…

A: The audit is the process of examining and checking the accounting books so as to know whether the…

Q: How do you distinguish between Financial Reporting for GAAP, and full Disclosure.

A: DISCLAIMER SINCE YOU HAVE ASKED MULTIPLE QUESTIONS, WE WILL SOLVE THE FIRST QUESTION FOR YOU. IF YOU…

Q: What other restrictions and requirements apply to auditors whenproviding nonaudit services to public…

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: What is a letter of comments?a. A letter the SEC sends to a company indicating needed changes or…

A: Letter of comments: Letter of comments also called as Deficiency letter.

Q: An audit committee isa. Composed of internal auditors.b. Composed of members of the audit team.c.…

A: An audit committee also refers as review council and it is one of the major working panels of an…

Q: Before a person may be appointed as a director, they must? O a Consent but the consent need only be…

A: Condition For Appointment of Directors:— 1]. Every Directors shall be appointed in the General…

Q: The Code of Ethics for Management Accountants includes an integrity standard, which requires the…

A: Solution: The code of ethics for management accountants includes an integrity standard which…

Q: Discuss how each of the following could affect independence of mind and independence in appearance,…

Q: The duty to retain discretion means that: Select one: a. The director should remain independent,…

A: The company will consists of the owners, and management. The owners are the persons who take care of…

Q: Choose from the following the primary responsibility of an internal auditor is to _________ a. The…

A: The Internal Auditor are different than the External Auditor in terms of Scope of Work and the…

Q: What are the basic code of ethics for an Accountant working in a Multinational Company? What could…

A: A Professional Accountant is required to comply with the following fundamental principles : A.…

Q: What consulting or nonaudit services are prohibited for auditors of public companies? What other…

A: Some non audit services are prohibited for the auditors of public companies. These consulting or non…

Q: Discuss the difference between the Management Letter and the Legal Representation Letter

A: Audit is conducted by auditor in which auditor assures (or denies) that the financial statements of…

Q: Who among the following should ensure that all directors are properly briefed on issues arising at…

A: The answer are as follows

Q: Choose the correct. What is a letter of comments?a. A letter the SEC sends to a company indicating…

A: Answer: Option a.

Q: Distinguish between ethical rights and obligations from the perspective of accountants and auditors.

A: Business ethics are ethics that should be applied in the business or professional course routine. It…

Q: Evaluate the following statement: “The corporate charter and the bylaws of a company are legal…

A: The corporate charter of a company and the bylaws of a company are the legal documents. But, these…

Q: The pre-engagement activities of an audit engagement for a public accounting firm include: * Client…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…

Q: a) List and briefly the main threats to independence and objectivity as identified in IESBA's Code…

Question

Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements for the directors of the company when signing off on company reports.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Expound this statement: The Board should adopt a Code of Business Conduct and Ethics, which would provide standards for professional and ethical behavior, as well as articulate acceptable and unacceptable conduct and practices in internal and external dealings. The Code should be properly disseminated to the Board, senior management and employees. It should also be disclosed and made available to the public through the company website.
That companies must follow the laws and regulations including company law, tax law and environmental protection regulations requires what category of internal control objectives? Financial reporting Effective operations. Compliance Government reporting
Which of the following documents will contain information about the compensation for Directors of a public company: The 10Q The Proxy Statement The Annual Report The outside Auditors Report
Which of the following is not a provision of the Sarbanes-Oxley Act as to the responsibility of a company's top managers? Question 3 options: They must establish formal procedures to receive, retain, and address any information that may affect the company's accounting. They must certify that they are primarily responsible for the company's internal controls over financial reporting. They must certify that the company's financial statements are fairly presented. They may deny responsibility for certain financial reporting matters if they are not knowledgeable about the proper accounting procedures for those transactions.
What are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act? What are the responsibilities of the company’s auditor?
Companies are required to follow the laws and regulations including company law, tax law and environmental protection regulations. Which of the following category of internal control objectives is mentioned in the above statement? Financial reporting Government reporting Effective operations. Compliance
Explain the principles of agency theory and discuss the ethics of directors being able to decide their remuneration, albeit through a remuneration committee.
which of the following is most likely to be included in a public company financial statement audit report? Adverse opinion. The name of the engagement partner. The audit was performed in accordance with generally accepted auditing standards. The year the auditor began serving the company
80 For which of the following matters should an auditor obtain written management representations? Group of answer choices Management’s compliance with contractual agreements that may affect the financial statements. Management’s knowledge of future plans that may affect the price of the entity’s stock. Management’s cost-benefit justifications for not correcting internal control weaknesses. Management’s acknowledgment of its responsibility for employee’s violations of laws.