Preview

Case Study Aud610

Good Essays
Open Document
Open Document
2103 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study Aud610
Question 1
Identify the situation that violated the MIA by Law and explain why?

According to Section 240.5 of Referral Fees and Commissions of MIA by Law, in certain circumstances, a professional accountant in public practice may receive a referral fee or commission in relating to a client. For example, where the professional accountant in public practice does not provide the specific service required, a fee may be received for referring a continuing client to another professional accountant in public practice or other expert. Accepting such a referral fee or commission creates a self-interest threats to objectivity and professional competence and due care. In this case, Amirul had accepted a certain percentage of the audit fee from Ariff because Amirul was the one who approached Ariff to undertake a financial statement audit of VCE Construction Work Sdn Bhd. For that reason, it violated Section 240.5 of MIA by Law because the money received by Amirul is evidently a referral fee. Thus, create a self-interest threats to objectivity and professional competence and due care to Ariff. Section 130 of MIA by Law governs the Professional Competence and Due Care expected from professional accountant. Stated under Section 130.1 of MIA by Law, the principle of professional competence and due care imposes the following obligations on professional accountants, which are: (a) to maintain professional knowledge and skill at the level required to ensure that clients and employers receive competent professional service: and (b) to act diligently in accordance with applicable technical and professional standards when providing professional services. Likewise, Section 130.4 states that diligence encompasses the responsibility to act in accordance with the requirements of an assignment, carefully, thoroughly and on timely basis. In this case, Ariff had abandoned his responsibility as the partner-in-charged because he is occupied with his construction company. As support, he

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Chapter 6 Case Study

    • 459 Words
    • 2 Pages

    The economy is down due to recession and a Florida hotel resort is trying to change their cleanliness policy to bring customers back. To do this, the hotel managers propose the “$10 dollar test”. The cleaning staff clean rooms based off of an instructional video. The manager observes them and then picks one random room to inspect. If the room is clean to the manager’s expectations, he or she will leave ten dollars. However, the manager will subtract a dollar for every mistake that they find. The housekeepers disapproved of this test at first because they were not confident that they would receive a big portion of that money. Eventually however, they became motivated and started correcting their mistakes so that they can receive the whole ten dollars.…

    • 459 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    case study 5

    • 411 Words
    • 2 Pages

    What is the crisis experienced in Erikson’s first stage of psychosocial development? How did Chrystell resolve this stage? What was the outcome of the crisis? Was it favorable or unfavorable?…

    • 411 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Case study #6

    • 346 Words
    • 3 Pages

    What are some cognitive changes seen in a number of elderly patients? (At least 2)…

    • 346 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    MHA Textile Case

    • 658 Words
    • 3 Pages

    The MHA Case raises the issues of ethics and independence in the auditing world. MHA is the audit client, but NYH is one of its major subsidiaries. NYH has been forced to cut costs, which has left its accounting department lacking in enough adequately trained personnel. When Susan, NYH’s Accounting Manager asks the auditor for help in closing the books for the second-quarter, the auditor must decide how to proceed. The auditor has two main options: help Susan close the books or decline Susan’s request for help. Both of these options have their advantages and disadvantages.…

    • 658 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Case Study a&P1

    • 1758 Words
    • 8 Pages

    1. A small family was traveling in its van and had a minor accident. The children in the back seats were wearing lap belts, but still sustained numerous bruises about the abdomen, and had some internal organ injuries. Why is this area more vulnerable to damage than others? Name specific organs that would be injured, as well as the abdominopelvic quadrant and region in which they are found. What injuries might you suspect in the damaged organs?…

    • 1758 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Case Study 83

    • 2147 Words
    • 7 Pages

    You are working at a physician’s office, and you have just taken C.Q., 38-year-old women into the consultation room. C.Q. has been divorced for 5 years, has two daughters (ages 14 and 16), and works full time as a legal secretary. She is here for a routine physical examination and requested that a human immunodeficiency virus (HIV) test performed. C.Q. stated that she is in a serious relationship, is contemplating marriage, and just wants to make certain she is “okay”. No abnormalities were noted on chemistries and hematology studies. The physician requests you perform a rapid HIV test, which is an antibody test. Within 20 minutes, the results are available and are positive.…

    • 2147 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    There are two rules for section 100 of this code. Rule 101-Independence states “A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council” (Accounting ethics, 94). Rule 102- Integrity and objectivity pertains to members being free of conflicts of interest. This rule makes sure that accountants…

    • 1873 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Rules of Professionals

    • 4073 Words
    • 17 Pages

    This research paper is on Rules of Professional Ethics and Conduct of the American Institute of Certified Public Accountants. They will be four cases that will be discussed for violation for the following rules. They are Rule 102 – Integrity and Objectivity, Rule 201 – Professional Competence, Rule 202 – Compliance with Standards, and Rule 501- Acts Discreditable. They will be 4 main points that will be discussed on each case in the paper. They are the following:…

    • 4073 Words
    • 17 Pages
    Good Essays
  • Good Essays

    6 3 Case Study

    • 408 Words
    • 2 Pages

    Strategic planning refers to a course of action for outlining organizational objectives, carrying out planning to achieve those objectives, and measuring the usefulness of those strategies (Kovner & Knickman, 2011).…

    • 408 Words
    • 2 Pages
    Good Essays
  • Better Essays

    One advantage is that in the past few years Hood has made no significant changes to its IT systems or manufacturing process outside of routine improvements to increase efficiency. This means that there should be little or none misunderstandings when it comes to the treatment of financial transactions since there has been no major change from…

    • 2874 Words
    • 12 Pages
    Better Essays
  • Satisfactory Essays

    Case Study 5.1

    • 663 Words
    • 3 Pages

    Q1: Accountants must notice the wrong do in confirmation of $203,000 as entry and proper recorded in Cardillo. They just face the dilemma of disclosing the wrong do in revenue or deceiving the outside auditor together with the executives. This kind of false activity directly influences the liquidity and then the profit of inventors and creditors of Cardillo may be affected. The initial responsibility that accountants should do to both internal and external accounting information users is to do account by rules through serious accounting procedures and do not cook the books for the sake of their own profit or just dare to be sacked. And the fact is that the accountants in firm Cardillo are lack of responsibility and afraid of being dismissed.…

    • 663 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    case study number 1

    • 312 Words
    • 2 Pages

    What personality (or character) type does Hank display according to Freudian Theory? Hank displays Oral personality type according to Freudian Theory. Why do you think so? I believe Hank displays Oral personality characteristics due his preoccupation with eating and smoking. At what stage is Hank Fixated, according to the Freudian perspective? I believe hank becomes fixated at the Oral stage, which occurs from birth to one year of age. Find evidence of fixation in the case study? Evidence of oral fixation occurs when the case study describes Hank as eating and smoking excessively as a method to calm his nerves. The case study states “Hank is sitting in his apartment eating a pint of Ben and Jerry’s Cherry Garcia ice cream and contemplating this past week, which had been stressful. The ice cream started to make Hank feel better, more relaxed, and once he finished off the pint, he pulled out a cigarette and lit it. The first inhale also helped to reduce the tension he was feeling” What would have caused this fixation? The cause of this fixation is due to how Hank’s mother responded to her infant’s demands, which at the time were solely id demands. The case study states “His mother often described Hank in terms that implied that he was loud even when he was a baby. His cries used to pierce the air, and his mother would often rush to make a bottle for Hank or give him a cookie to regain some peace and quiet, even when she could not understand why he was hungry because he had eaten so recently. She laughs about it now, but it was stressful at the time"…

    • 312 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In this work ACC 410 Week 4 Discussion Question 2 Ethics Case you will find right answers on the following task: "Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Corporation and was discharged. Hal Compton, CPA, was promptly engaged to replace Fell. Wilson Corporation did not compensate Fell for his work to date; therefore, Fell refused to allow Wilson Corporation…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case Study 77

    • 583 Words
    • 3 Pages

    1. 3 methods used to diagnose DM are hemoglobin AIC, urinalysis, and metabolic panel control tests.…

    • 583 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Accountant Responsibility

    • 2438 Words
    • 10 Pages

    Duska, R. (2005). The Responsibilities of Accountants. Geneva Papers on Risk & Insurance - Issues & Practice, 30(3), 410-424. doi:10.1057/palgrave.gpp.2510042.…

    • 2438 Words
    • 10 Pages
    Best Essays

Related Topics