Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CASE 2: 10 marks You are one of three partners in a firm of accountants. Five years ago the firm was appointed as external accountants

CASE 2: 10 marks

You are one of three partners in a firm of accountants. Five years ago the firm was appointed as external accountants to a young, successful and fast-growing company, engaged to prepare yearend accounts and tax returns. The business had started trading with a handful of employees but now has a workforce of 200, while still remaining below the size of company requiring a statutory audit.

Due to your close relationship with the directors of the company (who are its owners) and several of its staff, you become aware that staff purchases of goods manufactured by the company are authorised by production managers, and then processed outside the accounting system. The proceeds from these sales are used to fund the firm's Christmas party.

Parts:

1.Discuss the improper accounting for sales in the scenario. (2 marks)

2.What are some of the ethical questions that you will ask to yourself in light of the fundamental principles of professional code of conduct for accountants? (8 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Management Concepts And Skills

Authors: Samuel Certo, S Certo

15th global Edition

978-1292265193, 1292265191

More Books

Students also viewed these Accounting questions

Question

=+What is the EVPI?

Answered: 1 week ago