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ACC568 Auditing Assignment 2

   

Added on  2020-02-19

11 Pages2562 Words86 Views
Running head: AUDITINGAuditingName of the Student:Name of the University:Author note:
ACC568 Auditing Assignment 2_1
1AUDITINGExecutive summaryThe report consists of the ethical issues and the different legal liability issues that need to befaced by the MYH. The report needs to be undertaken to make the systematic approach thatneeds to solve on the various ethical issues that needs to mitigate the legal liability cases againstthe MYH. The AAA needs to be considered as an ethical decision making model that needs tosolve the ethical problems eventually. The results of the different approach needs to have theMorgan Fertilizers that needs to be informed to make the unethical business operations and makea contractual waste management that needs to be maintained. The access to the three tests needsan auditor that can be considered liable to a third party. The three tests have been discussedbelow in an elaborate way..
ACC568 Auditing Assignment 2_2
2AUDITINGQ1.The modern business world has some of the ethical factors that need to be considered whiletaking the decisions of the business (Eilifsen et al. 2013). The relevant outcomes of the decisionof the business will have a severe impact on the different stakeholders. There is a scope forseveral ethical decision making models. One of the most prominent models is that which theAmerican Accounting Association introduces. This AAA is an organization that is considered anexcellent support in the Accounting educational, practice and research system worldwide. Avoluntary organizational system that comprises of the different accounting experts is required towork towards the growth of the accounting research and education (Hayes, Wallage andGortemaker 2014). The ethical decision making model of the AAA has been initially written byRockness and Langerder in 1990 that consists of the logical step processes in order to make anethical decision making system. The ethics in the code is considered to play a decision makingmodel. The CPA and the CAANZ in Australia has a specific code of ethics that acts as a publicinterest (DeFond and Zhang 2014). The ethical code consists of the five different elements thatrequire an auditor that needs to be complied to. These are:1.Objectivity2.Integrity3.Professional Behavior4.Confidentiality5.Professional competence and due careStep 1: Determine the facts
ACC568 Auditing Assignment 2_3
3AUDITINGThere is a need to determine the facts that is the first step of the AAA. From thebeginning of the process, there is a need for the various essentials that requires gathering ofthe different information, which has no ambiguity of any other issues that can be consideredunder it. It is evident in case of the Morgan fertilizers that the Jacqui is one of the seniorauditors of the team that requires the notifications from the Morgan fertilizers that haschanged its contractors to the Dumparound Ltd for the waste management purposes. Theallegation of the Dumparound has a comparatively high level of the toxic waste at one of itsmajor site that requires investigation by the local council.Step 2: Define the ethical issuesThe second step involves the identification and the scrutinizing the various facts that isrelated to the ethical issues. The issues regarding the ethical consideration is that thefertilizers in the Morgan organization has developed a change that is beneficial to thecontractors of the Dumparound Ltd in the various purposes related to the waste management.The Dumparound Ltd is all about the different investigations that are required by the localcouncil for the inappropriate dumping of the toxic waste. The Dumparound Ltd is consideredto be disposing at a high level of the different toxic wastes in the environment that requiresconsideration as a typical ethical issue (Wang, Li and Li 2015). Step 3: Identification of the major principles, values and the rulesThe code of the professionalism ethics requires a comparative step that will be helpful.The principle is comprised of the various objectives that require the statement of the differentmembers that are not supposed to be comprised in the business and the professionaljudgement area as it is bias of the various areas of the interests conflict and also to un due
ACC568 Auditing Assignment 2_4

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