Question
Ethics accounting questions! Answer each question, there are no yes/no answers nor short sentences. 1 Paul Craig is an accountant with a regional CPA firm,
Ethics accounting questions! Answer each question, there are no yes/no answers nor short sentences.
1 Paul Craig is an accountant with a regional CPA firm, Howe, Dewey, Cheatem, CPAs (HDC). Craig hopes to become a partner with HDC within the next few years. A client, BADD Inc., approaches Craig to submit a proposal to audit the books and financial records of BADD. The company tells Craig that they are prepared to pay a flat fee to HDC and a bonus if the report shows BADDs profit is in excess of the actual figure. Also, BADD indicate they will pay Craig a facilitation fee if all goes well. What is wrong with this? What should Paul Craig do?
2 COVID has been defeated and people are flocking to stores. You are a cashier, and you are busy for your entire shift. The lines of customers are growing and backing up. Your manager tells you to just take customers cash and put the cash in a shoebox she has provided to you and dont ring up the sales. She says she will reconcile the days sales and that way nothing will be out of balance. What is wrong with this? What are you going to do?
3 You are a forensic accountant with over 10 years experience. The Controller of a local company has engaged you to determine what a series of unidentified purchases are that were made on a Sunday when the company is closed. These purchases were made with the corporate credit card, but the monthly statement doesnt provide enough information to determine what the purchases are. The purchases were made at the local branch of a big-box home improvement store. So, you head over to the store and speak with the manager. After you identify yourself by name the manager asks you what are you, and you identify yourself as an auditor. The manager makes the assumption you are from the corporate office and immediately cooperates to identify the items purchased. The store manager is not considered involved in any potential fraudulent activity. Should you have corrected the managers assumption? Why?
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