01 Jul Ethics in Auditing
Ethics Case Jeremy Roberts had great expectations about his future as he sat in his graduation ceremony in May 2015. He was about to receive his Master of Accounting degree, and next week he would begin his career on the audit staff of Mayberry, Taylor, Jones & Co., CPAs. Things looked a little different to Jeremy in February 2016. He was working on the audit of Johnson Manufacturing, an electronics manufacturer with a calendar yearend. The pressure was enormous. Everyone on the audit team was putting in 70-hour weeks, and it still looked as if the audit wouldn’t be done on time. Jeremy was doing work in the fixed asset area, vouching additions for the year. The audit program indicated that a sample of all items over $20,000 should be selected, plus a judgmental sample of smaller items. When Jeremy went to take the sample, John Wren, the senior, had left the client’s office and couldn’t answer his questions about the appropriate size of the judgmental sample. Jeremy forged ahead with his own judgment and selected 50 smaller items. His basis for doing this was that there were about 250 such items, so 50 was a reasonably good proportion of such additions. Jeremy audited the additions with the following results: The items over $20,000 contained no misstatements; however, the 50 small items contained a larger number of misstatements. In fact, when Jeremy projected them to all such additions, the amount seemed quite significant. A couple of days later, John Wren returned to the client’s office. Jeremy brought his work to John in order to apprise him of the problems he found and got the following response: “Gosh, Jeremy, why did you do this? You were only supposed to look at the items over $20,000 plus 5 or 10 little ones. You’ve wasted a whole day on that work, and we can’t afford to spend any more time on it. I want you to throw away the schedules where you test the last 40 small items and forget you ever did them.” When Jeremy asked about the possible audit adjustment regarding the small items, none of which arose from the first 10 items, John responded, “Don’t worry, it’s not material anyway. You just forget it; it’s my concern, not yours.” Required: In a 3 to 4 page paper, answer the following questions regarding the case: 1. Describe the ethical dilemma in detail, using pertinent facts to support your answer. 2. Identify each of the stakeholders and fully explain how each person/groups is a stakeholder. 3. List, in detail, several alternative responses that can be selected regarding the dilemma and explain the effect that selecting each of the alternative responses would have on the stakeholders. 4. Fully explain the action and implementation plan you would take regarding the response you would select. Date Due: October 18, 2017 …
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.