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Accounting Theory and Contemporary Issues : Doc

   

Added on  2021-06-14

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Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUESAccounting Theory and Contemporary IssuesName of the StudentName of the UniversityAuthor’s Note

1ACCOUNTING THEORY AND CONTEMPORARY ISSUESTable of ContentsAnswer to Question 1......................................................................................................................2Answer to Question 2......................................................................................................................3Answer to Question 3......................................................................................................................4Answer to Question 4......................................................................................................................5Answer to Question 5......................................................................................................................6References........................................................................................................................................8

2ACCOUNTING THEORY AND CONTEMPORARY ISSUESAnswer to Question 1Professional Scenario: As per the given scenario, Johnny is the audit in-change in ABCCompany (ABC) and PCAOB is going to visit the company for inspection. Another majorpurpose of this visit can be the investigation of the audit works of ABC. It can be observed thataudit work paper is not completed as two major documents are missing that are key itemworksheet and signed audit engagement letter. After obtaining work paper from the initial issue,the engagement letter including the signature was still missing. At the manager’s request, Johnnyhas obtained the signature of the client without disclosing the actual date and intension of theinclusion. It implies that Johnny has breached the principle of objectivity (Houghton andCampbell 2013). As per this principle, the auditors are required to show professionalism at thetime to collect, analyze and communicate information for auditing activities. In addition, theauditors should not compromise the professional judgment under any influence. In the givencase, the manager of ABC has influence on Johnny for the submission of audit work papers.Hence, Johnny is not impartial as well as independent (Beauchamp and Bowie 2014).Thus, PCAOB has the authority to sanction Johnny as he has not acted in the favor of thestakeholders and his acts are highly unprofessional. Hence, Johnny and the manager should facethe necessary consequences for adopting illegal measures to submit the work paper. Student Scenario: As per the given scenario, Mary Jo downloads the test books from the websitein spite of the fact that they are only for the use of the instructors. By doing this, she has beenable to secure good marks in the exam. With this action, Mary Jo has breached the principles offairness, honesty, integrity, responsibility and legality. As per these principles, an individual isrequired to be knowledgeable, understanding and truthful in order to ensure honesty in learning.

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