Auditing Homework - Chapter 3-4

Auditing Homework - Chapter 3-4 - Auditing Chapter 3...

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Auditing Chapter 3 Homework 3-1 What is meant by the term ethical dilemma ? Describe an ethical dilemma that you have faced . This is a situation that an individual faces involving a decision about appropriate behavior where it can effect a large number of individuals or groups. I have faced ethical dilemmas where the president of the company has instructed me to report certain financial information in a different format where it could become hidden or confusing for the other management team to see clearly. The dilemma is that if I didn’t confirm to this I could easily lose my job, but the downside was that my integrity in reporting financial data would be in jeopardy with all executive management teams and therefore I choose not to comply with the presidents request. 3-6 In Chapter 2, the 10 generally accepted auditing standards were discussed. How does the AICPA Code of Professional Conduce relate, if at all, to these 10 generally accepted auditing standards ? The AICPA Code of Professional Conduct is designed to provide a framework for expanding professional services and responding to other changes in the profession, consisting of two sections with the first being the Principals and the second being the Rules. The Rules consist of several sections with Rule 202 outlining Compliance with Standards; meaning that the Code of Professional Conduct must be in compliance with General Accepting Auditing Standards . 3-8 Bill Scott works as a manager in the Phoenix office of an international public accounting firm. His father has just taken a position as a purchasing agent for one of the public accounting firm’s Phoenix clients. Has Bill’s independence been impaired with respect to this audit client? Has the public accounting firm’s independence been impaired if Bill does not work on the audit ? First, Bill’s father would be considered a ‘close relative’ being his parent.
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Auditing Homework - Chapter 3-4 - Auditing Chapter 3...

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