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AssessmentFeedback.docxETHICS IN ACCOUNTING 2
Ethics in Accounting
Date
Running Head: ETHICS IN ACCOUNTING 1
Name
Discuss Craig's ethical position/obligations and his possible courses of action. Your research should be drawn from the prescribed text, articles, and any relevant ethical frameworks.
Craig concludes that the cladding is highly flammable and potentially dangerous after conducting his investigation. City Builders is run by Tim Jones, who is also the owner. Tim is devastated after exhorting, and he knows that if he loses his structure permit and thus his company, he won't be able to concentrate on his family. They are most likely to be evicted from their residence. Tim approaches Craig with a plan to make him a leader and investor in City Builders Pty Ltd at no cost to Craig before submitting his evaluation report to the ABA. He also offers to pay Craig over a third of the company's profits. Because of the recent structure blast in Australia's lofts, City Builders has been extremely helpful. The only stipulation Tim places on Craig is that he not reveals his cladding findings in his ABA paper (Freedman, 2019). Comment by Microsoft Office User: you have written only a small summary on the case scenario in the question and cite an article by Freedman 2019? what do you mean by that??
The head of a review group acts as a manager and can regularly recognize excellent performance and provide insightful analysis for improvement in implementation. The lead investigator should demonstrate how the evaluation party should behave by tasks. A visionary must demonstrate leadership and provide real-world examples. The community leader should demand that the members follow all of the organization's policies, procedures, and customs. This includes adhering to the same working hours, dres' code, meal hours, and other requirements. Colleagues should try to blend in with the environment they're inspecting in. Any behaviour that distinguishes the company would detract from its ability to manage the organization under consideration. The group leader should be reasonable to both the group and the assessed association when dealing with any problem between the two. The pioneer must maintain objectivity when gathering information about current events to resolve any character conflicts. If there is significant doubt about the quality of the result of the check of existing realities, and further evaluation fails to remove the uncertainty, the item should be withdrawn or offered in language that recognizes the extent of weakness at the post-review (leave) conference. The review's objectivity and decency were shown by this type of operation. If there are some character conflicts between members of the analysis committee, the group chief is responsible for intervening quickly and resolving the conflict. The target should be established in private and for the benefit of the entire evaluation committee and the organization being reviewed. Any analysis group's well-defined policy should be that no curveballs are included in the review at any time. An analysis is an inhospitable environment for "shroud and knife tactics," "witch-hunting," or the identification of situations that arise at an inopportune moment (Timmy, 2019). Comment by Microsoft Office User: This is looks like a general introduction which is irrelevant to the case. You should specifically discuss the components of the ethical issue that Craig is facing doing his audit with the contractor? For example, what is the ethical issue that his facing and how to deal with it? What action should he take? Either reporting this or accepting the offer? Also, you can find similar cases to this case and cite it to support your answer. Again, please be more relevant to the case and write about it specifically Comment by Microsoft Office User: What do you mean by that? I have no clue. I think you it is better to remove it and talk specifically to the case. Please be more relevant to the case and write about it specifically Comment by Microsoft Office User: As the case is motioned, Craig determines that the cladding and the material is dangerous and his sure about it. I believe you should fix this sentence as you motioned there is a doubt and uncertainty of the quality which is not the case. Comment by Microsoft Office User: I believe this information is not relevant to the case. Why do you think this is useful information?? Again, please be more relevant to the case and write about it specifically
Before sufficient transparency at the post-review (leave) gathering or structured review study, moral assessments require complete authenticity in any conclusion (or perception) with dependable persons from the reviewed organization to verify its validity. The group leader should ensure that he (or she) and his or her colleagues maintain their integrity. They do not consider endowments, amusements of nature, or degrees of enjoyment that might affect the analysis or influence the relationship between the two associations (auditee and review group). If members of the inspected organization offer to accompany the evaluation party out to lunch, it is the group leader's responsibility to clarify the rules for accepting the lunch, such as limiting the amount of time spent away from the evaluated workplace. Inspectors also approach restricted data of the reviewed organization during the evaluation. The reviewers have made an ethical promise not to share this information with others. Comment by Microsoft Office User: I think you meant that they should do the review work with full integrity without considering the emotional relationship or influence. Please rephrase the sentence in good writing. Comment by Microsoft Office User: Yes you are right as accepting the gifts and lunches sometimes considered as breaching the integrity and auditors cannot accept these offers, but the example in the case is actually accepting is the position and the profit offer and I think your example of the lunch is not relevant. Please edit it to reflect the example of the case which is the offer and the position. Again, please be more relevant to the case and write about it specifically Comment by Microsoft Office User: I believe you meant in this sentence that the information that the audit team is reviewing should be confidential and not shared with anyone. I think this sentence needs to be rephrased in better words to reflect the meaning correctly
Overall Feedback On Part 2 A question:
The question is asking about the legal position of the engineer (Craig) his obligations, and the course of action that he needs to take in the case regarding the owner’s offer of not disclosing the report which shows his findings about the cladding in his report to the ABA. This is an accounting ethical issue where the external accountant should maintain the report in integrity and decline the offer as well as reporting this ethical issue to the both his company and the contractor (ABA) as the material is very dangerous to use. You should have discussed this ethical issue specifically rather than talking in general aspects and irrelevant components. Also, please support your answer with relevant cases if any.
Part 2 B
Discuss the ethical or legal implications that may follow if Harminder and his family sell their shares before this announcement and their possible courses of action.
Harminder recently ate with his sister Priya, who works as a senior bookkeeper for AAA Ltd, a massive pharmaceutical company listed on the Australian Stock Exchange. Priya expressed her concerns over supper about a slew of recent complaints centred on CoVax, one of their main products. CoVax, a vaccine promoted as a treatment for a variety of potentially fatal illnesses, has reportedly been responsible for some unexplained customer casualties. There will be a thorough investigation by experts into the company and its operations about the drug CoVax and other products. Harminder and his family have always supported Priya's career decisions, and as a result, they have invested a significant sum of money in AAA Ltd shares. The family is considering selling all of their properties before the story reaches the financial papers, which will almost certainly happen over the next few days. Comment by Microsoft Office User: You are just summarizing the scenario. This is should not been done this way, as you could you summarize the scenario in one or two sentences at most and provide the ethical issue in the case and the application. Please remove this part and rewrite to reflect to above motioned feedback and comments.
According to SAS no. 99, the analysis group would discuss the possibility of a material misquote in the expenditure papers as a result of misrepresentation before and after the data collection measure. This necessary "conceptualizing" is another idea in inspecting writing, and companies can decide how to better carry out this requirement right away in the selection period. Keep in mind that conceptualizing is a necessary approach that can be implemented with the same degree of caution as any other analysis system. The meeting's main goals are to create new ideas and to discuss them. The first is crucial, as it ensures that the loyalty department has a good understanding of the information that prepared peers have about their interactions with customers, as well as how extortion can be carried out and masked. The meeting's second objective is to establish the right "tone at the top" for leading the commitment (Terry, 2019). Comment by Microsoft Office User: What is SAS no. 99?? I could not find it in the references list. Please make sure to make easier for the reader to find what you have cited. Comment by Microsoft Office User: Please rephrase this sentence to better understanding for the reader. Comment by Microsoft Office User: I think this information is not relevant to the case and topic. Please be specific Comment by Microsoft Office User: Which meeting? I believe that information is not relevant to the subject. Comment by Microsoft Office User: How this is relevant to the case?
The requirement that conceptualizing is done with a demeanour that "incorporates a scrutinizing spirit" is an attempt to demonstrate the required degree of expert caution and "set" the committee's way of life. The belief is that by instilling a review commitment culture, the whole commitment would be implanted, making all review methodologies significantly more effective. The basic fact that the commitment party has a sincere discussion about the substance's powerlessness to misrepresentation often helps to warn reviewers that the risk remains in any commitment regardless of any prior experiences or skewed inclinations about administration's trustworthiness and respectability. Comment by Microsoft Office User: This is very general. Please summarize the general concept and be more specific to the case.
It's worth noting that SAS no. 99 doesn't restrict conceptualization to the evaluation cycle's planning phase. Conceptualizing may be applied to any aspect of the data collection process. Inspectors coherently collect data in the commitment but look for freedoms to fully conceptualize. A few examiners could plan to meet for another round of discussions at the end of the analysis to discuss all of their colleagues' findings and encounters, as well as whether the group's assessment of and response to the risk of content misquote due to misrepresentation was appropriate (RAMO, 2019). Comment by Microsoft Office User: I believe this is not relevant to the subject. Please remove Comment by Microsoft Office User: What do you mean by this? How is this relevant to the case?
The AICPA's comprehensive anti-fraud and corporate duty policy is built on the latest misrepresentation principle, Statement on Auditing Standards no. 99, Consideration of Deception in a Financial Statement Audit. The program's mission is to revive examined budget summaries as an unmistakable picture window into corporate America and to change the faith of financial backers in our capital market sectors. The AICPA is committed to reducing the frequency of financial misrepresentation by providing CPAs with clear and focused reviewing the guidance and by establishing a new foundation for extortion investigations. This article was adapted from part 2 of Michael Ramos' Fraud Detection in a GAAS Audit SAS No. 99 Implementation Guide, which was published by the AICPA at the same time as the latest misrepresentation standard was published. This non-authoritative practice aid provides a top-to-bottom, segment-by-segment explanation, as well as execution guidance and practice tips for the standard. SAS no. 99 allows analysis colleagues to talk with one another during the dedication about the risks of material error as a result of extortion, in addition to conceptualizing. Indeed, the requirement allows the evaluator with definitive responsibility for the review to determine if adequate communication among colleagues was maintained during the engagement (Freddy, 2018). Comment by Microsoft Office User: You could summarize this in less wording. Also,
Overall Feedback On Part 2 B question:
This question is looking for the implication, ethical issue, and conclusion when the family members benefit from the distribution of the confidential information which Priya shared with her family. All confidential information cannot be shared even to family to enable them financially benefits from the information. This is unethical issue that Priya has done, and will impact the company as well. You should have discussed how the management of the organization can prevent employees to distribute such confidential information before the official announcements. Also, you should explain why Priya action is not ethical from the accounting and business perspective and how to solve these issue nowadays. Please be more specific and relevant to the case and refer to the textbook (chapter 3) to build your answer on.
References
Freddy. (2018). Code of Ethics. 1(4), 11-16.
Freedman, J. (2019). Ethical Responsibility in Accounting. Retrieved from https://smallbusiness.chron.com/ethical-responsibility-accounting-58071.html
Terry, G. (2019). Concept, Background and Purpose of the Code of Ethics. 11-20.
Timmy. (2019). Ethical Responsibility of the Auditor. Retrieved from https://qualityamerica.com/LSS-Knowledge-Center/qualitymanagement/ethical_responsibility_of_the_auditor.php
