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Code of Ethics (2-3 pages single-spaced) For each of the six scenarios listed below, write a couple of paragraphs discussing whether there is a violation

Code of Ethics (2-3 pages single-spaced)

For each of the six scenarios listed below, write a couple of paragraphs discussing whether there is a violation of the Code of Ethics. In your paper, you must include the following:

1) Identify the possible alternative points of view. There is no one right answer. You may be able to support either a yes or no answer for any of these scenarios. You need to show me you considered both possibilities in formulating your conclusion.

2) Provide your specific conclusion. You must explain how you arrived at each conclusion. In addition you must reference the applicable section(s) in the Code of Ethics (e.g. 2.1). You can reference relevant Attribute Standards as well.

3) You are free to make assumptions and in fact are encouraged to do so as long as you clearly document them. You can do some research as well.

Scenarios

1) Does including the CAE (Chief Audit Executive) in a company's stock option program violate the Code of Ethics?

2) After every audit, a survey about the audit work is sent to key management involved. 10% of each auditor?s annual bonus is determined based on the results of these surveys. Does this practice violate the Code of Ethics?

3) An internal auditor assigned to audit a vendor?s compliance with product quality standards is the brother of the vendor?s senior manager of public relations. Would it be a violation to participate on the engagement?

4) At a conference during lunch, an internal auditor engages in a discussion with the seven people at his table about their experiences with ERP implementations at their companies. At his company the ERP implementation is still in progress. Would discussing this information be considered a violation of the Code of Ethics?

5) The in-charge auditor on the audit engagement is given four weeks to perform an audit. Three weeks into the audit she realizes the planned audit scope cannot be completed in the budgeted time. Is reducing the scope of the audit due to budget restrictions a violation of the Code of Ethics?

6) A pharmaceutical company has a promising drug in development which would extend the lives of numerous terminally ill patients. There are no alternative drugs currently available. The company needs financing to continue development. If the funding is not obtained by the end of the fiscal year, it is very likely the drug will never get to market. Internal auditing has evidence that the company has engaged in aggressive accounting which may not be consistent with GAAP. The CFO has asked the chief audit executive (CAE) to hold off reporting the issue until after the fiscal year is over so as to not jeopardize the chances of the company getting additional funding. The CAE decides to take the issue directly to the audit committee. Did she act ethically?

image text in transcribed Code of Ethics (2-3 pages single-spaced) For each of the six scenarios listed below, write a couple of paragraphs discussing whether there is a violation of the Code of Ethics. In your paper, you must include the following: 1) Identify the possible alternative points of view. There is no one right answer. You may be able to support either a yes or no answer for any of these scenarios. You need to show me you considered both possibilities in formulating your conclusion. 2) Provide your specific conclusion. You must explain how you arrived at each conclusion. In addition you must reference the applicable section(s) in the Code of Ethics (e.g. 2.1). You can reference relevant Attribute Standards as well. 3) You are free to make assumptions and in fact are encouraged to do so as long as you clearly document them. You can do some research as well. Scenarios 1) Does including the CAE (Chief Audit Executive) in a company's stock option program violate the Code of Ethics? 2) After every audit, a survey about the audit work is sent to key management involved. 10% of each auditor's annual bonus is determined based on the results of these surveys. Does this practice violate the Code of Ethics? 3) An internal auditor assigned to audit a vendor's compliance with product quality standards is the brother of the vendor's senior manager of public relations. Would it be a violation to participate on the engagement? 4) At a conference during lunch, an internal auditor engages in a discussion with the seven people at his table about their experiences with ERP implementations at their companies. At his company the ERP implementation is still in progress. Would discussing this information be considered a violation of the Code of Ethics? 5) The in-charge auditor on the audit engagement is given four weeks to perform an audit. Three weeks into the audit she realizes the planned audit scope cannot be completed in the budgeted time. Is reducing the scope of the audit due to budget restrictions a violation of the Code of Ethics? 6) A pharmaceutical company has a promising drug in development which would extend the lives of numerous terminally ill patients. There are no alternative drugs currently available. The company needs financing to continue development. If the funding is not obtained by the end of the fiscal year, it is very likely the drug will never get to market. Internal auditing has evidence that the company has engaged in aggressive accounting which may not be consistent with GAAP. The CFO has asked the chief audit executive (CAE) to hold off reporting the issue until after the fiscal year is over so as to not jeopardize the chances of the company getting additional funding. The CAE decides to take the issue directly to the audit committee. Did she act ethically

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