Discuss the professional and ethical issues, Business Law and Ethics

John, a young CPA and one of the audit team members for Moulberg Electrical Appliances Ltd, has developed very good insights into the company's systems in the last 12 months and was asked by his partner, Chandler, to draft a report on the reliability of the internal control at Moulberg for review. The report is to be used as a part of a due diligence assurance engagement for Moulberg's prospectus. Moulberg wants to be listed on the Australian Securities Exchange by next June.

In carrying out the review, John finds a number of matters that concern him. He notices that the controls over inventory requisitions are very poor, leading to numerous complaints from customers about delays and wrong deliveries, and cancellations. Moreover, the inventory records do not show the history or the values of the inventory, so that estimates were used to arrive at the year-end inventory. He also noticed the poor standard of the appliances, with manufacturers' warranties long expired.

John completes his report, with details of the poor internal controls for his partner's review. However, his partner replaces his report with a very brief summary, and a conclusion that the internal control systems are sound and reliable.

John makes an appointment to see Chandler, but is worried as to how he should approach him about Moulberg Electrical Appliances' issues.

Required

Discuss the professional and ethical issues faced by John and provide an analysis which can help him deal with the matter with Chandler.

 

 

Posted Date: 3/19/2013 2:37:14 AM | Location : United States







Related Discussions:- Discuss the professional and ethical issues, Assignment Help, Ask Question on Discuss the professional and ethical issues, Get Answer, Expert's Help, Discuss the professional and ethical issues Discussions

Write discussion on Discuss the professional and ethical issues
Your posts are moderated
Related Questions
ADMINISTRATION OF THE LAW: Furtherly a source of law is the origin of the rule that legal principle or constitutes a law.  Conversely the phrase 'sources of England law' that'

DISCLAIMER OF ASSETS: The liquidator has a statutory right of disclaimer of assets: s.135.  The rules are: (a)     he must obtain leave of the court; (b)     the right o

Goods - Sales of Goods Even if "goods" like in common parlance has like the Act has given the word such technical meaning. Whether it provides like; "goods" consist of "all chat

how do i answer a problem question in law about the law of contract

State Montevideo Convention Montevideo Convention states : "The political existence of the state is independent of recognition by other States. Even before recognition the st

Silcraze City Council owns and operates a Gym. It charges $20 per month as membership fees. On the Gym Membership Card it is written that the Cardholder has the right to use all th

CREDITORS' VOLUNTARY WINDING UP: If no declaration of solvency is made and delivered to the registrar, the liquidation process is a creditors' voluntary winding up even if i

General Partner - Liability of Partners The General partner's liability extends for the whole of the debts to the partnership. Thus he is jointly with the other partners. Conv

RESERVE CAPITAL: The reserve capital is defined by S.62 of the Act as the portion of the issued but uncalled capital of a limited company which the company's members, by speci

State Article 10 of air and outer space law Article 10 allows the aircraft to cross the territory of a contracting State without landing, and further states that every aircraft