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Auditing Theory and Practice - Assignment

   

Added on  2020-03-01

9 Pages1719 Words49 Views
Auditing Assignment 1Auditing Theory and Practice: First Report

Auditing Assignment 2Executive SummaryMiller Yates Howarth is the second largest regional accounting firm in Australia. Most ofMYH’s audit clients are in agriculture, mining, manufacturing and property industries. JacquiLeak is one of the audit seniors at MYH and Morgan Fertilizers Pty Limited is one of MYH’slong standing clients with operations in both Tamworth and Bathurst in NSW and Toowoombain Queensland. During the audit of Morgan fertilizers, Jacqui notices that the company changedits contractors for waste management to Dumparound. The waste contract is not even signed byDumparound and even the amount of waste is not specified. Another ethical issue that thecompany is facing is that Morgan fertilizer has reported to carrying overvaluation of inventory.As per the case, 50% of the company’s inventory is held at the company’s Bathurst facility and itis the inventory that does not exist. The inventory is being overvalued by 35%. Although MYHhas correctly verified the quantity of Tamworth stock, they accepted management’s valuation,which did not take account of considerable obsolescence. This report is based on the seven stepmodel of American Accounting Association about the ethical decision-making to resolve theethical issues involved in the case and to suggest Jacqui the best course of action and theinfluences of common law on negligence issues.

Auditing Assignment 3Table of ContentsIntroduction......................................................................................................................................4American Accounting Association ethical decision-making model................................................4Facts of the Case:.........................................................................................................................4Ethical issues of the case..............................................................................................................5Norms, principles and values related to this case........................................................................5Alternative course of action.........................................................................................................5Best course of action....................................................................................................................6Consequences of each possible course of action.........................................................................6Final Decision..............................................................................................................................6Conclusion.......................................................................................................................................8References........................................................................................................................................9

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