This document summarizes a presentation on ethics and governance for professional accountants. It discusses the role of accountants in society and their obligations to serve the public interest. It outlines frameworks for ethics and corporate governance, including key principles like balancing performance and compliance. It also provides examples of ethical dilemmas accountants may face and enhances to the conceptual framework for addressing threats. The conclusion emphasizes the importance of accountants understanding their role in upholding good governance and ethics.
After reading case 1-1 Standard Setting A Political Aspect” in t.docxgalerussel59292
After reading case 1-1 Standard Setting: “A Political Aspect” in the textbook, write an essay that includes the following elements:
1 A formal introduction.
2 Answers to questions (a) through (d) of the case, focusing on the role of accounting standard setting in the private sector.
3 A conclusion.
Your submitted paper should be at least 2-3 pages long and written according to CSU-Global Guide to Writing and APA Requirements, following APA style, and properly referenced.
Note that the textbook author is citing a source in this case, which must be considered when forming your references and citations.
CASE 1-1 STANDARD SETTING: “A POLITICAL ASPECT”
This case consists of a letter from Dennis R. Beresford, chairperson of the Financial Account- ing Standards Board, to Senator Joseph I. Lieberman. The specific issue was proposed legis- lation relating to the accounting for employee stock options.
Permission to reprint the following letter was obtained from the Financial Accounting Standards Board.
August 3, 1993
Senator Joseph I. Lieberman United States Senate Hart Senate Office Building Room 316
Washington, DC 20510
Dear Senator Lieberman:
Members of the Financial Accounting Standards Board (the FASB or the Board) and its staff routinely consult with members of Congress, their staffs, and other government officials on matters involving financial accounting. For example, FASB members and staff met with Senator Levin both before and after the introduction of his proposed legis- lation, Senate Bill 259, which also addresses accounting for employee stock options.
The attachment to this letter discusses the accounting issues (we have not addressed the tax issues) raised in your proposed legislation, Senate Bill 1175, and issues raised in remarks introduced in the Congressional Record. My comments in this letter address an issue that is more important than any particular legislation or any particular accounting issue: why we have a defined process for setting financial reporting standards and why it is harmful to the public interest to distort accounting reports in an attempt to attain other worthwhile goals.
Financial Reporting
Markets are enormously efficient information processors—when they have the infor- mation and that information faithfully portrays economic events. Financial state- ments are one of the basic tools for communicating that information. The U.S. capital market system is well-developed and efficient because of users’ confidence that the fi- nancial information they receive is reliable. Common accounting standards for the preparation of financial reports contribute to their credibility. The mission of the FASB, an organization designed to be independent of all other business and professio- nal organizations, is to establish and improve financial accounting and reporting standards in the United States.
Investors, creditors, regulators, and other users of financial reports make business and economic decisions based on info.
PART#4Put section 2 & 3 into ACTIONS! · How are we going to ac.docxherbertwilson5999
PART#4
Put section 2 & 3 into ACTIONS!
· How are we going to accomplish these things
· What methods, practices, policies and logistical features would we include in our “forum” to ensure these things are being followed by our partners and people using our forum/resource???
· ex.) Reward systems for following regulations, committees, maintenance checks. etc
NOTE: This template is inspired by the CauxRT General Principles. It is a tool for CSR Planning & Documentation 1) to create conditions for stakeholders to work together and live in society to advance the common good. - They are guidelines for enabling cooperation and mutual prosperity to coexist non-conflictually with healthy and fair competition, and 2) to value each person as an end, not simply as a mean to the fulfillment of its, or its owners, purposes, or even as a reason to coerce or otherwise force an individual to accede to a majority in any circumstance.
Identify
1) CSR Issues
2) Suggest Communication Mode (USE: MS/Mission, VA/Values, VS/Vision, CE/Code of Ethics, CBC/Code of Business Conduct, SC/Supply Chain Standards, SupplierGML/General Manager's Annual Letter to Stakeholders, Any Other deemed appropriate) and
3) Structural Implications - Commitees, budgets, staff resources needed for each.
Principle 1 - RESPECT STAKEHOLDERS BEYOND SHAREHOLDERS
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 2 – CONTRIBUTE TO ECONOMIC, SOCIAL AND ENVIRONMENTAL DEVELOPMENT
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 3 – BUILD TRUST BY GOING BEYOND THE LETTER OF THE LAW
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
Follow all laws, and be honest with consumer, do not be fraudulent.
Pay salaries to employees accordingly and fairly. Do not offshore work.
Disclose reports detailing the companies issues and finances. Do not lie on the reports
Follow all contracts with suppliers and do not shortchange them.
No Price fixing, or setting artificially high prices due to monopoly status
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 4 – RESPECT RULES AND CONVENTIONS
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 5 – SUPPORT RESPONSIBLE GLOBALISATION
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communi.
Cerini & Associates | Compliance Information And RiskConrad
Boards need to establish appropriate policies, budgets, and controls and exhibit fiduciary responsibility that:
Are mission and priority driven
Promotes accuracy, integrity, compliance, and transparency
Promotes quality of service (and has a system to monitor and improve)
Builds confidence at all levels
Creates on-going viability and maximizes utility
Develops appropriate accountability
Ensures proper controls at all levels including the Board
Fosters education
Develops proper communication channels with internal and external sources (i.e. compliance officer, internal auditors, external auditors)
EFFECTS OF ETHICS ON FRAUD 1
EFFECTS OF ETHICS ON FRAUD 2
Ethical Analysis
Effects of ethical behaviors in an economy are far reaching to individuals, firms and the economy at large. Accountants play a vital role in ensuring the reliability and trustworthiness of accounting data and affect the moral culture of business and society. In order to achieve this, accountants are advised to observe the American Institute of Certified Public Accountants (AICPA), Professional Code of Conduct. Undoubtedly, private and public organizations employ professional accountants who are mandated to provide financial information regarding its business cycles. In some situations, an accountant may feel compelled or pressured to provide false financial information or alter financial results. In these cases, this creates a threat to the moral and ethical character of an accountant and is known as an ethical dilemma. Ethical dilemmas constitute a circumstance in which an individual faces a situation or a decision that test his/her moral system or ethical code. In these circumstances, an individual must choose whether to live out consistent moral attitudes or act contrary to what one personally believes or what has been established by ethical code. Ethical accounting codes require accountants to have a high level of integrity, to maintain confidentiality and behave according to a high degree of professional standards.
This dissertation will discuss how ethical accounting standards impact accounting fraud. Accounting fraud involves the intentional manipulation of financial information, which misleads shareholders, creditors, investors and the general public. These actions are premeditated attempts to deceive and attract investors by intentionally altering financial statements. Often, this is accomplished by overstating revenue and assets and under reporting expenses and liabilities. The perpetrators of accounting fraud are employees, managers, accountants and top executives. Thus, to reduce business fraud, ethical codes have been instituted within corporations, industries and state and national accounting boards. For certified public accountants, the AICPA Code of Professional Conduct has been adopted to tackle the ethics of accounting.
Professional Conduct Diminishes Fraud
An accountant’s professional conduct is a key quality used to minimize fraud. As mentioned, state accountancy boards and the AICPA are mandated to formulate and enforce professional standards for all accounting members who are responsible for providing financial services. The AICPA Code of Professional Conduct was recodified in June 2014, and became fully effective in December 2015. This code of conduct requires all accountants to act with integrity, due care, objectivity, competency and ensure confidentiality for their client. In ad.
After reading case 1-1 Standard Setting A Political Aspect” in t.docxgalerussel59292
After reading case 1-1 Standard Setting: “A Political Aspect” in the textbook, write an essay that includes the following elements:
1 A formal introduction.
2 Answers to questions (a) through (d) of the case, focusing on the role of accounting standard setting in the private sector.
3 A conclusion.
Your submitted paper should be at least 2-3 pages long and written according to CSU-Global Guide to Writing and APA Requirements, following APA style, and properly referenced.
Note that the textbook author is citing a source in this case, which must be considered when forming your references and citations.
CASE 1-1 STANDARD SETTING: “A POLITICAL ASPECT”
This case consists of a letter from Dennis R. Beresford, chairperson of the Financial Account- ing Standards Board, to Senator Joseph I. Lieberman. The specific issue was proposed legis- lation relating to the accounting for employee stock options.
Permission to reprint the following letter was obtained from the Financial Accounting Standards Board.
August 3, 1993
Senator Joseph I. Lieberman United States Senate Hart Senate Office Building Room 316
Washington, DC 20510
Dear Senator Lieberman:
Members of the Financial Accounting Standards Board (the FASB or the Board) and its staff routinely consult with members of Congress, their staffs, and other government officials on matters involving financial accounting. For example, FASB members and staff met with Senator Levin both before and after the introduction of his proposed legis- lation, Senate Bill 259, which also addresses accounting for employee stock options.
The attachment to this letter discusses the accounting issues (we have not addressed the tax issues) raised in your proposed legislation, Senate Bill 1175, and issues raised in remarks introduced in the Congressional Record. My comments in this letter address an issue that is more important than any particular legislation or any particular accounting issue: why we have a defined process for setting financial reporting standards and why it is harmful to the public interest to distort accounting reports in an attempt to attain other worthwhile goals.
Financial Reporting
Markets are enormously efficient information processors—when they have the infor- mation and that information faithfully portrays economic events. Financial state- ments are one of the basic tools for communicating that information. The U.S. capital market system is well-developed and efficient because of users’ confidence that the fi- nancial information they receive is reliable. Common accounting standards for the preparation of financial reports contribute to their credibility. The mission of the FASB, an organization designed to be independent of all other business and professio- nal organizations, is to establish and improve financial accounting and reporting standards in the United States.
Investors, creditors, regulators, and other users of financial reports make business and economic decisions based on info.
PART#4Put section 2 & 3 into ACTIONS! · How are we going to ac.docxherbertwilson5999
PART#4
Put section 2 & 3 into ACTIONS!
· How are we going to accomplish these things
· What methods, practices, policies and logistical features would we include in our “forum” to ensure these things are being followed by our partners and people using our forum/resource???
· ex.) Reward systems for following regulations, committees, maintenance checks. etc
NOTE: This template is inspired by the CauxRT General Principles. It is a tool for CSR Planning & Documentation 1) to create conditions for stakeholders to work together and live in society to advance the common good. - They are guidelines for enabling cooperation and mutual prosperity to coexist non-conflictually with healthy and fair competition, and 2) to value each person as an end, not simply as a mean to the fulfillment of its, or its owners, purposes, or even as a reason to coerce or otherwise force an individual to accede to a majority in any circumstance.
Identify
1) CSR Issues
2) Suggest Communication Mode (USE: MS/Mission, VA/Values, VS/Vision, CE/Code of Ethics, CBC/Code of Business Conduct, SC/Supply Chain Standards, SupplierGML/General Manager's Annual Letter to Stakeholders, Any Other deemed appropriate) and
3) Structural Implications - Commitees, budgets, staff resources needed for each.
Principle 1 - RESPECT STAKEHOLDERS BEYOND SHAREHOLDERS
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 2 – CONTRIBUTE TO ECONOMIC, SOCIAL AND ENVIRONMENTAL DEVELOPMENT
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 3 – BUILD TRUST BY GOING BEYOND THE LETTER OF THE LAW
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
Follow all laws, and be honest with consumer, do not be fraudulent.
Pay salaries to employees accordingly and fairly. Do not offshore work.
Disclose reports detailing the companies issues and finances. Do not lie on the reports
Follow all contracts with suppliers and do not shortchange them.
No Price fixing, or setting artificially high prices due to monopoly status
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 4 – RESPECT RULES AND CONVENTIONS
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communication Mode
3) Structural Implications - Committees, BofD Responsibilties, Outreach, etc.
Principle 5 – SUPPORT RESPONSIBLE GLOBALISATION
1. Customers
2. Employees
3. Shareholders
4. Suppliers
5. Competitors
6. Communities
1) CSR Issues
2) Suggest Communi.
Cerini & Associates | Compliance Information And RiskConrad
Boards need to establish appropriate policies, budgets, and controls and exhibit fiduciary responsibility that:
Are mission and priority driven
Promotes accuracy, integrity, compliance, and transparency
Promotes quality of service (and has a system to monitor and improve)
Builds confidence at all levels
Creates on-going viability and maximizes utility
Develops appropriate accountability
Ensures proper controls at all levels including the Board
Fosters education
Develops proper communication channels with internal and external sources (i.e. compliance officer, internal auditors, external auditors)
EFFECTS OF ETHICS ON FRAUD 1
EFFECTS OF ETHICS ON FRAUD 2
Ethical Analysis
Effects of ethical behaviors in an economy are far reaching to individuals, firms and the economy at large. Accountants play a vital role in ensuring the reliability and trustworthiness of accounting data and affect the moral culture of business and society. In order to achieve this, accountants are advised to observe the American Institute of Certified Public Accountants (AICPA), Professional Code of Conduct. Undoubtedly, private and public organizations employ professional accountants who are mandated to provide financial information regarding its business cycles. In some situations, an accountant may feel compelled or pressured to provide false financial information or alter financial results. In these cases, this creates a threat to the moral and ethical character of an accountant and is known as an ethical dilemma. Ethical dilemmas constitute a circumstance in which an individual faces a situation or a decision that test his/her moral system or ethical code. In these circumstances, an individual must choose whether to live out consistent moral attitudes or act contrary to what one personally believes or what has been established by ethical code. Ethical accounting codes require accountants to have a high level of integrity, to maintain confidentiality and behave according to a high degree of professional standards.
This dissertation will discuss how ethical accounting standards impact accounting fraud. Accounting fraud involves the intentional manipulation of financial information, which misleads shareholders, creditors, investors and the general public. These actions are premeditated attempts to deceive and attract investors by intentionally altering financial statements. Often, this is accomplished by overstating revenue and assets and under reporting expenses and liabilities. The perpetrators of accounting fraud are employees, managers, accountants and top executives. Thus, to reduce business fraud, ethical codes have been instituted within corporations, industries and state and national accounting boards. For certified public accountants, the AICPA Code of Professional Conduct has been adopted to tackle the ethics of accounting.
Professional Conduct Diminishes Fraud
An accountant’s professional conduct is a key quality used to minimize fraud. As mentioned, state accountancy boards and the AICPA are mandated to formulate and enforce professional standards for all accounting members who are responsible for providing financial services. The AICPA Code of Professional Conduct was recodified in June 2014, and became fully effective in December 2015. This code of conduct requires all accountants to act with integrity, due care, objectivity, competency and ensure confidentiality for their client. In ad.
Board Fiduciary Duty Relating to the Annual Audit and Form 990Ballstate1
Joyce Dulworth, CPA and tax partner with BKD LLP, along with Michael Earls, CPA, presented this topic during the 2013 Ball State Foundation PAC Seminar.
Using your own personal experiences and knowledge please discuss the.pdfinfo324235
Using your own personal experiences and knowledge please discuss the following question: Do
you believe that accounting is critical to our economic system? Why is it an integral part of our
economic system Explain. Support your answers with at least one practical example. Why did
you choose accounting as your major? If it is not your major, explain your reason for your
selection of your major What is a CPA? What service can a CPA provide that a non CPA
accountant cannot regardless of how many other qualifications he/she has including a doctorate
in accounting? What are some of the specializations in the accounting field? Discuss one or more
of them. Which one are you considering if you are an Accounting major? Post a job description
detailing the responsibilities and requirements on any accounting position that requires a
minimum of a Bachelor\'s degree. Was there anything about that job description that surprised
you (pleasant or unpleasant) Your responses must be numbered according to each question
above. You do not need to reproduce the question. You must meet a minimum length of 750
words (excluding citations, the job description and my questions) and must be posted as response
to my thread in this forum with the same subject line as above followed by your last name. Use
any acceptable form of citation. There is an automatic 5 point deduction for submissions with no
citations or citations in poor format. Please do not use attachments when posting your work.
Solution
Do you believe that accounting is critical to our economic system? Why is it an integral part of
our economic system Explain. Support your answers with at least one practical example.
Yes, I believe accounting is very critical to our economic system. Accounting plays an essential
role in economic development. High-quality corporate reporting is key to improving
transparency, facilitating the mobilization of domestic and international investment, creating a
sound investment environment and fostering investor confidence, thus promoting financial
stability. A strong and internationally comparable reporting system facilitates international flows
of financial resources while at the same time helping to reduce corruption and mismanagement
of resources. It also strengthens international competitiveness of enterprises in attracting external
financing and taking advantage of international market opportunities.
Good quality financial infrastructure is essential to the development of emerging economies as it
provides investors with an acceptably high level of assurance. Unless resources invested in
putting the plumbing in place can be accounted for, what will stop the roads going nowhere, the
energy disappearing, and the communications breaking down?
It could be very interesting and maybe surprising if we clearly understand that how accountants
can help to improve and growth economies in all over the world. Traditionally, researches have
said that accountants were hands of liberalism and.
1.1. Nature and Definition of Auditing
Different scholars have defined auditing in different ways. For example, Auditing is a process of collection and evaluation of evidence for the purpose of reporting on economic transaction. The other definition of auditing given by the Institute of Chartered Accountants of India, in its publication titled, General Guidelines on Internal Auditing has defined auditing as ‘ a systematic and independent evaluation of data, statements, records, operations and performances ( financial or otherwise) of an enterprise for stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through audit report.
As it is cited in Kanal Gupta and Arora A.(1996,p6), Arens and Loebbecke defined auditing as the process by which a complete, independent person accumulates and evaluates evidence about quantifiable information related to specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria. To sum up, Auditing is the process of verifying the assertions produced by accounting, as to whether they present a true and fair view of the entity's financial position in accordance with accounting standards and GAAP. In other words, auditing seeks to verify whether or not financial records have been properly prepared.
Study Note
The term audit is derived from the Latin term ‘audire,’ which means to hear. In early days an auditor used to listen to the accounts read over by an accountant in order to check them Auditing is as old as accounting.
It was in use in all ancient countries such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts and auditing.
The original objective of auditing was to detect and prevent errors and frauds and most recently objective of audit shifted to ascertain whether the accounts were true and fair rather than detection of errors and frauds.
Auditing evolved and grew rapidly after the industrial revolution in the 18th century with the growth of the joint stock companies the ownership and management became separate.
The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees.
1.2. Historical Development of Auditing
The development of auditing is closely linked to the development of accounting. In the early stage of civilization, the number of transaction was usually so small that able to record the transactions himself. However, with the growth of civilization and consequential growth in volume and complexity of transactions, it becomes necessary to entrust the job of recording the transactions to other persons. The trend started with maintenance of accounts to empires by public officials
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Board Fiduciary Duty Relating to the Annual Audit and Form 990Ballstate1
Joyce Dulworth, CPA and tax partner with BKD LLP, along with Michael Earls, CPA, presented this topic during the 2013 Ball State Foundation PAC Seminar.
Using your own personal experiences and knowledge please discuss the.pdfinfo324235
Using your own personal experiences and knowledge please discuss the following question: Do
you believe that accounting is critical to our economic system? Why is it an integral part of our
economic system Explain. Support your answers with at least one practical example. Why did
you choose accounting as your major? If it is not your major, explain your reason for your
selection of your major What is a CPA? What service can a CPA provide that a non CPA
accountant cannot regardless of how many other qualifications he/she has including a doctorate
in accounting? What are some of the specializations in the accounting field? Discuss one or more
of them. Which one are you considering if you are an Accounting major? Post a job description
detailing the responsibilities and requirements on any accounting position that requires a
minimum of a Bachelor\'s degree. Was there anything about that job description that surprised
you (pleasant or unpleasant) Your responses must be numbered according to each question
above. You do not need to reproduce the question. You must meet a minimum length of 750
words (excluding citations, the job description and my questions) and must be posted as response
to my thread in this forum with the same subject line as above followed by your last name. Use
any acceptable form of citation. There is an automatic 5 point deduction for submissions with no
citations or citations in poor format. Please do not use attachments when posting your work.
Solution
Do you believe that accounting is critical to our economic system? Why is it an integral part of
our economic system Explain. Support your answers with at least one practical example.
Yes, I believe accounting is very critical to our economic system. Accounting plays an essential
role in economic development. High-quality corporate reporting is key to improving
transparency, facilitating the mobilization of domestic and international investment, creating a
sound investment environment and fostering investor confidence, thus promoting financial
stability. A strong and internationally comparable reporting system facilitates international flows
of financial resources while at the same time helping to reduce corruption and mismanagement
of resources. It also strengthens international competitiveness of enterprises in attracting external
financing and taking advantage of international market opportunities.
Good quality financial infrastructure is essential to the development of emerging economies as it
provides investors with an acceptably high level of assurance. Unless resources invested in
putting the plumbing in place can be accounted for, what will stop the roads going nowhere, the
energy disappearing, and the communications breaking down?
It could be very interesting and maybe surprising if we clearly understand that how accountants
can help to improve and growth economies in all over the world. Traditionally, researches have
said that accountants were hands of liberalism and.
1.1. Nature and Definition of Auditing
Different scholars have defined auditing in different ways. For example, Auditing is a process of collection and evaluation of evidence for the purpose of reporting on economic transaction. The other definition of auditing given by the Institute of Chartered Accountants of India, in its publication titled, General Guidelines on Internal Auditing has defined auditing as ‘ a systematic and independent evaluation of data, statements, records, operations and performances ( financial or otherwise) of an enterprise for stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through audit report.
As it is cited in Kanal Gupta and Arora A.(1996,p6), Arens and Loebbecke defined auditing as the process by which a complete, independent person accumulates and evaluates evidence about quantifiable information related to specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria. To sum up, Auditing is the process of verifying the assertions produced by accounting, as to whether they present a true and fair view of the entity's financial position in accordance with accounting standards and GAAP. In other words, auditing seeks to verify whether or not financial records have been properly prepared.
Study Note
The term audit is derived from the Latin term ‘audire,’ which means to hear. In early days an auditor used to listen to the accounts read over by an accountant in order to check them Auditing is as old as accounting.
It was in use in all ancient countries such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts and auditing.
The original objective of auditing was to detect and prevent errors and frauds and most recently objective of audit shifted to ascertain whether the accounts were true and fair rather than detection of errors and frauds.
Auditing evolved and grew rapidly after the industrial revolution in the 18th century with the growth of the joint stock companies the ownership and management became separate.
The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees.
1.2. Historical Development of Auditing
The development of auditing is closely linked to the development of accounting. In the early stage of civilization, the number of transaction was usually so small that able to record the transactions himself. However, with the growth of civilization and consequential growth in volume and complexity of transactions, it becomes necessary to entrust the job of recording the transactions to other persons. The trend started with maintenance of accounts to empires by public officials
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
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Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
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Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
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Joseph Sheffu - Ethics and Governance for Professionals.pptx
1. Ethics & Governance for
Professional Accountants
Paper presented by CPA Joseph Sheffu
NBAA Seminar on Accounting &
Auditing Issues
3rd – 6th Feb.2021
Malaika Beach Resort & Hotel - Mwanza
2. Agenda
Accounting and the Society
Public Interest Framework
Ethics – Overview of Code of Ethics for Professional
Accountants
Governance Principles
IFAC’s Good Practice Guidance on our role
titled “Evaluating and Improving Governance
in Organisations, 2009”
4. Accounting and the Society
What Is the Accountancy Profession For?
We support market systems and economy
Technocrats and trusted advisors
Society needs information and advice that supports
important decisions that affect organisations, people
and their lives, and society as a whole
With the privileges and benefits that accompany CPA
status come a variety of obligations, foremost of which
is the obligation to put the good of society ahead of
personal interests.
5. Accounting and the Society
What Is the Accountancy Profession For?
Provide, analyse, interpret information to management for
formulation of strategy, planning, decision-making and control
Measuring performance, record financial transactions and
communicate to stakeholders
Managing risks, providing internal control and business
assurance
Creating value through effective use of resources (financial
and non financial) through (a) understanding of drivers of value
to stakeholders and (b) organisational innovation
6. Accounting and the Society
What Is the Accountancy Profession For?
An understanding of ethics and governance is essential
to CPAs.
If CPA are to effectively support management in
discharging their stewardship functions then they should
demonstrate a deeper better understanding of ethics
and corporate governance frameworks and mechanisms
and be proficient in regulatory regimes, compliance
requirements to ensure lawful, ethical and effective
corporate behavior and operations.
7. Accounting and the Society
What Is the Accountancy Profession For?
Should have knowledge to identify and resolve
professional and ethical issues
Should beware of pressures that can them in their
working life
Should know what one must do to promote the
confidence and trust of society and hence fulfils the role
as a positive social force
8. Public Interest Obligation
The accounting profession is the clearest and most
important case of a profession whose role is paramount for
the economic function; whose commitment to the public
interest is an explicit responsibility; and whose
“professionalism” is embedded and articulated in its Code of
Ethics.
The effects of ethical behavior in accounting are far
reaching in the economy.
For sustainability of our profession depends on a our Ethical
conduct. Be seen and be perceived as ethical. Making
judgments that embody ethical fundamental principles
9. IFAC’s Public Interest Framework (3 criteria)
Must be mindful of the wider economic, political, and
cultural implications of our work.
Serving the public interest should be evaluated against 3
criteria. Enabling us to assess whether or not (and the
degree to which) any policy, action, process or condition is
in the public interest.
1. Consideration of costs and benefits for society as a
whole
2. Adherence to democratic principles and processes
3. Respect for cultural and ethical diversity
10. IFAC’s Public Interest Framework (3 criteria)
All 3 criteria must be met for us to conclude public
interest is served.
However, the three criteria may not always be met to the
same degree, in which case determining what is in the
public interest involves a balance, or trade-off, between
the three.
11. What is “Interest” - are all things valued by
society.
Providing sound financial and business reporting to
stakeholders - all parties in the marketplace directly and
indirectly impacted by that reporting;
Facilitating the comparability of financial reporting and
auditing across different jurisdictions;
Reducing economic uncertainty in the marketplace and
throughout the financial infrastructure (e.g., banking,
insurance, investment firms, etc.);
Requiring that CPAs apply high standards of ethical behavior
and professional judgment
12. What is “Interest” - are all things valued by
society.
Specifying appropriate educational requirements and
qualifications for CPAs (NBAA emanated from public interest);
CPAs to enable governments and public sector organizations to
provide their constituencies with sound fiscal information and
decision-making; and
Providing CPAs in business with the knowledge, judgment, and
the means to contribute to sound corporate governance and
performance management for the organizations they serve.
13. Some societal challenges CPAs face
Public higher expectations of our role, can be unfair
Flawed/outdated laws and regulations e.g. Public Finance &
Tax statutes that have “gaps”
Political interference and lack of appreciation of our role
Ineffective Board/Oversight Boards
Human Capital deficiency, e.g. Parliamentarians, no CPAs
Bureaucracy in public services delivery;
Corruption, state capture
Lack of whistleblower protection
14. Have strong influence, powerful role,
can be abused
CPA are part of the chain of Command
Direct involved in the preparation of strategic plans,
budgets, procurement plans, forecasts and projections
Being part of the Approval Process for major finance
activities
Being part of the Authorised Signatories signing Cheques
even where one is not an approver of the spending
15. Have strong influence, powerful role,
can be abused
Enabler/Disabler of Fraud; by our action or inaction
Direct involved in preparation of financial reports aimed
for other users. Messengers of good or bad news
Forefront in the design, implementation of defense
systems
Cut across all operations. Called upon to help support answer
queries by Board, oversight
16. Ethical Dilemmas, Examples
Temptations to manipulate financial results – drivers:
Incentive, valuation gains, dividends, competition –
market leadership, avoid back consequences e.g. breach
of debt covenants
CEO/CFO instructing subordinate employee (revenue
accountant) to record revenue transaction in an incorrect
manner e.g. ignoring cut-off to boost revenues for the
current year end. Management receives a bonus for the
boosted revenue and the subordinate receives
recognition in an upcoming performance review.
17. Ethical Dilemmas, Examples
Breach of laws and regulations e.g. Tax laws, involuntary due to
cash flows, voluntary due to other incentives
Our business tends to have net VAT input position each month
meaning we always have to pay VAT to TRA. Our debtors mostly
Government institutions do not pay us timely whereas we have
to pay net VAT input within 17 days of end of month regardless
of whether our debtors have paid us. Failure to remit VAT
timely would result in punitive financial penalty. Pretty unfair
since TRA is part of the Government who owes us money.
CFO dilemma is whether to quantify the penalty and accrue as
liability and later settle with TRA or ignore until found out by
TRA? Should the Board be made aware of the actions?
18. IESBA’s New Code of Ethics for Professional
Accountants (June 2019)
19. IESBA’s New Code of Ethics for Professional
Accountants (June 2019)
Authorised Spending
20. Overarching Requirements (ORs) /
5+1 Fundamental Principles (FP)
THE
CONCEPTUAL
FRAMEWORK
Integrity
Objectivity Confidentiality
Professional
Behavior
Independence
Prof.
Competence
& Due Care
21. Enhanced Conceptual Framework
Dedicated provisions
that apply to all
CPAs, in all
circumstances when
dealing with Ethics
& Independence
(E/I)
Establishing
exhaustive list of all
E/I circumstances is
impractical
Evaluate
Threats
Address
Threats
Identify
Threat
• Exercise
professional
judgement
• Remain alert for
new information
and changes in
facts and
circumstances
• Use the reasonable
and informed third
party test
25. Key Enhancements to Conceptual Framework
Identified threats that are not at acceptable level must be
addressed in one of the 3 ways:
Eliminate the circumstances creating threats
Apply safeguards; or
Decline or end engagement/activity
Emphasis that if threats cannot be addressed, CPA must decline
or stop
New requirements to “step back” in forming overall conclusion
26. Other substantive revisions – CPA-IBs
Preparing and presentation of information
More comprehensive provisions addressing CPA-IBs’
responsibilities when preparing or presenting information
Prohibition on exercising discretion when preparing or
presenting information with intent to mislead or inappropriate
influence contractual or regulatory outcomes
Enhanced guidance to assist CPA-IB in disassociating from
misleading information
27. Other substantive revisions – CPA-IBs
Pressure to Breach Fundamental Principles
Prohibition on allowing pressure
from others to result in a breach of
Fundamental principles
Prohibition on placing pressure on
others that would lead them to
breach Fundamental Principles
Guidance to assist in navigating
situations involving pressure
Give examples of ‘Pressure’ Red
Flags
28. Other substantive revisions – CPA-IBs & CPA-PPs
Inducements, Incl. Gift & Hospitality
Clarifications about appropriate
boundaries for offering and
accepting of inducements
Prohibition on offering or accepting
inducements with intent to
improperly influence behavior
Application of conceptual framework
when no actual or perceived
improper intent
29. Other substantive revisions – Independence
Long Association
Strengthen general provisions addressing long association
A strengthened Partner rotation regime for PIE audits,
including:
Extant Revised
7 years time-on: all KAPs No change
2 years cooling-off: all KAPs
5 years cooling-off: EP
3 years cooling-off: EQCR
2 years cooling-off: KAPs
30. Other substantive revisions
Applicability of CPA-IB provisions to CPA-PPs
New requirement and clearer guidance for CPA-PPs that
relevant CPA-IB provisions in Part 2 are applicable to them
when they perform professional activities pursuant to their
relationship with the Firm, whether as:
Whether as contractor, employees or owners of the firm
Illustrations of situations in which provision in part 2 apply to a
CPA-PP.
31. Other substantive revisions
Professional judgement and professional Scepticism
New guidance:
For all CPAs to emphasize the
importance of obtaining an
understanding of the facts and
circumstances when exercising
professional judgement
For CPA-PP - that explains how
compliance with the FPs supports
the exercise of professional
skepticism
32. Examples of threats -CPAIB & CPAPP
CPAIB CPAPP
Conflict of Interest X X
Preparation and presentation of Information X
Acting with Sufficient Expertise X
Financial Interests, Compensation, Incentives linkedX X
Inducements, Gifts & Hospitality X X
Responding to NOCLAR X
Pressure to Breach Fundamental Principles X
33. Examples of threats -Unique to CPAPP
Second Opinion X
Fees and Other Type of Remunerations X
Custody of Client's Assets X
Actual & Threatened Litigation X
Business Relationship X
Family and Personal Relationship X
Recent Services with Audit Client X
Serving as Director X
Employments with Client X
Temporary Assignments X
Long Association of Personnel with audit client X
34. Examples of threats - CPAPP
NON AUDIT SERVICES – largely prohibited – with
exceptions
Accounting & Booking X
Administrative Support X
Valuation services X
Tax services X
Internal Audit X
IT Services X
Litigation support X
Legal services X
Recruitment services X
Corporate Finance X
36. Understanding the Accountant’s Role
in Corporate Governance
Accountants are the Promoters, Enforcers and
Gatekeepers of Good Corporate Governance
and Financial Reporting
IFAC had developed a Good Practice Guidance
on our role titled “Evaluating and Improving
Governance in Organisations, 2009”
37. Understanding the Accountant’s Role
in Corporate Governance
Different organisation take different culture and
approach to corporate governance
Various Corporate Governance frameworks have been
developed locally and internationally
Good corporate governance is generally linked to good
corporate performance
38. Governance: Conformity Vs. Performance
Most organisation have governance structures in place
At its basic, they focus on Conformity with Laws and
Regulations
However, intention is to also focus in enabling
organisation to improve performance
Good Corporate Governance is creating a balance
between Conformity and Performance
Successful organisation adhere to good corporate
governance principles, periodical evaluate, benchmark
against frameworks, best practices evolve with changes
in environment
39. Governance Framework - Definitions
Governance: set of responsibilities and practices
exercised by the board and executive management
(Governing body) with goals to (i) provide strategic
direction (ii) ensuring objectives are met (iii) manage
risks (iv) responsible utilisation of resources
Conformity: compliance with laws, regulations, best
practices, codes and provide assurance to stakeholders in
general
Performance: policies and procedures that (a) focus on
opportunities and risks, strategy, value creation, and
resource utilisation, and (b) guide an organisation’s
decision-making.
40. Governance Framework
Principle-based guidance
framework composed of
two dimensions i.e. the
Performance &
Conformance which
together they represent
the entire value
creation, resource
utilisation, and
accountability framework
of an organisation
Both historical and
forward looking
41. Governance Framework:
Conformance
Concerning with Compliance with laws and regulations
Concerning risk management – strategic, tactical and
operational policies
Focusing on achieving goals – effectively and efficiently
Systems for financial and non financial reporting works
Management fiduciary responsibilities met
Fraud, criminal preventions
42. Governance Framework:
Performance
Organisation is a business – must make profits,
create/add value/wealth, return to stakeholders
Establish robust decision-making process, incl.
determination of risk appetite. Oversight strategy
implementation
Alignment of business operations, models, resource
utilisation with strategic direction and organisation’s
risk appetite
Reacting to changing dynamics
43. 12 Key Principles (IFAC guidance)
1. The creation and optimization of sustainable stakeholder value
should be the objective of governance.
2. Good governance should appropriately balance the interests of
stakeholders.
3. The performance and conformance dimensions of governance are
both important to optimize stakeholder value.
4. Good governance should be fully integrated into the organization.
5. The governing body should be properly constituted and
structured to achieve an appropriate balance between performance
and conformance.
44. 12 Key Principles (IFAC guidance)
6. The governing body should establish a set of fundamental
values by which the organization operates.
7. The governing body should understand the organization’s
business model, its operating environment, and how sustainable
stakeholder value is created and optimized.
8. The governing body should provide strategic direction and
oversight in both the performance and conformance dimensions.
9. Effective and efficient enterprise risk management should
form an integral part of an organization’s governance system.
10. Resource utilization should align with strategic direction.
45. 12 Key Principles (IFAC guidance)
11. The governing body should periodically measure and
evaluate the organization’s strategic direction and
business operations, and follow up with appropriate actions
to ensure appropriate progress and continued alignment with
objectives.
12. The governing body should ensure that reasonable
demands from stakeholders for information are met, and
that the information provided is relevant, understandable,
and reliable.
46. Conclusion
Most Corporate failures globally are attributed to
Corporate Governance failure including unethical
conduct
CPAs should always be conscious of their unique public
interest obligations
CPAs should understand that they serves two masters –
the profession Vs. what is expected by their employers
CPAs have to be conscious of their individual actions or
inaction and implication to the profession as a whole
47. Conclusion
All should regularly update and enhance their
knowledge of emerging Ethics and Corporate Governance
developments
The International Code of Ethics for Professional
Accountants, including International Independence
Standards, establishes the standard of behavior
expected of a CPA. That is our public interest
responsibility.
We should regularly evaluate our organisations for
effectiveness in these aspects
Editor's Notes
CPAs are less involved in traditional accounting functions and are more involved with leadership and management.
CPAs providing key support to senior management and are directly involved in many important decisions.
Sustainability of our profession, our business first and foremost depends on a our Ethical conduct. Society, economies look at us, we must not only be seen to be ethical, and must also be perceived as ethical, by the social we serve. Being ethical means simply to make judgments that embody ethical fundamental principles and reflect public interest goals. Being perceived as ethical means, in effect, that behavior is seen as above reproach and trustworthy.
The 1st criterion requires us to assess the public interest in terms of negative and positive outcomes (costs and benefits) for society as a whole, recognizing that the accountancy profession through its actions has an impact on people, organizations, capital markets, and governments. The 2nd criterion requires us to assess a decision or action taken in the public interest as a democratic process―something which must contain certain qualities of governance, public participation, and public accountability. The 3rd criterion requires us to assess the extent to which any public interest issue or policy can be applied appropriately and interpreted consistently from one society or jurisdiction to the next. In general, we argue that the public interest is not served unless all three criteria are met, at least to some degree. However, it must also be recognized that the three criteria may not always be met to the same degree, in which case determining what is in the public interest involves a balance, or trade-off, between the three.
The 1st criterion requires us to assess the public interest in terms of negative and positive outcomes (costs and benefits) for society as a whole, recognizing that the accountancy profession through its actions has an impact on people, organizations, capital markets, and governments. The 2nd criterion requires us to assess a decision or action taken in the public interest as a democratic process―something which must contain certain qualities of governance, public participation, and public accountability. The 3rd criterion requires us to assess the extent to which any public interest issue or policy can be applied appropriately and interpreted consistently from one society or jurisdiction to the next. In general, we argue that the public interest is not served unless all three criteria are met, at least to some degree. However, it must also be recognized that the three criteria may not always be met to the same degree, in which case determining what is in the public interest involves a balance, or trade-off, between the three.
Public higher expectations: Junk of all trades. When a company fail; major corruption scandal at a company; procurement failure; our roles is called into question
Often times we encounter situations where we wished laws and regulations would have addressed but they are not. E.g. gaps in Tax laws allowing tax avoidance
Tax laws or regulatory laws not recognising IFRS, or accounting principles e.g. leasing as Fixed Asset and
Protracted, long overdue court ruling making difficult to determine accruals or provisions
Board/oversight Boards not doing their first defence role, leaving it all to the accountant or their auditors
Politicians who cares less of accounting principles – IFRS, want to bend rules to suit political motives
Client lacking sound accounting/IFRS knowledge, keeping unqualified staff
Corruption undermines transparency, may lead to material misstatements