The ABC Corporation Case

Describe four types of audit opinions Green and Associates may provide at the conclusion of a corporate financial audit Financial information should be accompanied by an auditor’s report. One of the opinions suggested include the fact that unqualified opinion is made when an auditor indicates that the financial statements of the represented company provide a fair and true view in accordance the financial reporting framework.Advertising We will write a custom essay sample on The ABC Corporation Case specifically for you for only $16.05 $11/page Learn More The auditor issues this report when the financial statements do not include mis-statements and they are fairly presented according to Generally Accepted Accounting Principles (GAAP) (Vallabhaneni, 2005, p186). A qualified opinion report is issued by auditors when two situations do not rhyme with the General Accepted Accounting Principles (GAAP). Single deviation qualification occurs when one or se veral areas of the financial statements do not comply with GAAP, however, they do not affect the rest of the financial statement. Limitation of scope qualification is evidenced when a single or more areas of financial statements could not be audited, for instance, failure to test a company’s inventory of goods. Adverse opinion report is evident when the auditor confirms that the financial statements of a company are misstated, hence, they do not conform to GAAP. These statements are regarded as unreliable and inaccurate. In addition, disclaimer of opinion report is issued when an auditor declines to present an opinion regarding the financial statements, and therefore fails to complete the audit for some reason; therefore, does not provide the company with an opinion (Vallabhaneni, 2005, p.186).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Determine whether the inventory valuation method used by ABC Corporation was legal and compliant with GAAP ABC Corporation previously used FIFO inventory valuation method before changing to LIFO, with an intention of enhancing the annual tax return. The First In, First Out entails selling the goods bought earliest first, while the newest goods are sold last. Generally Accepted Accounting Principles (GAAP) allows the use of FIFO method; this method yields to highest income especially in times of inflation due to the lowest estimate of cost of goods sold. However, the rational change from one valuation method to another is not ethical, since the company shifted to LIFO with an aim of enhancing annual tax return, hence plans to shift back to FIFO when things get better. Is the client’s refusal to procure an audit of Internal Controls over Financial reporting in violation of Sarbanes-Oxley? Why or why not? ABC refusal to allow the auditors to separate audit of internal controls over financial reporting is a violation of Sarbanes –Oxley Act section 404, which requires an auditor to report on the company’s adequacy of internal control over financial reporting. The internal control report entails the management’s effort in maintain an effective internal control structure. Therefore, the act requires companies to include an assessment of internal controls and the procedure of financial reporting. Effective internal controls allow for the preparation of reliable financial reports; therefore, ABC refusal to procure an internal control violates the act (price water house coopers, et al., 2004, p.1). In compliance with GAAP, which type of audit opinion should Green and Associates issue? ABC company has not complied to all the rules of GAAP, the refusal to procure internal controls over financial reporting with an aim of avoiding further costs, is a violation of the rules pertaining to GAAP.Advertising We will write a custom essay sample on The ABC Corporation Case specifically for you for only $16.05 $11/page Learn More Therefore green and associates auditors should issue a qualified opinion based on the two questionable issues at hand, on internal controls and valuation methods. Discuss the ethical issues involved for ABC Corporation and for Green and Associates Ethical issues here apply to both the organization and the auditing firm; ABC Corporation should ensure that it operates under the standards of GAAP, hence avoiding the violation of law. ABC is currently avoiding costs, hence violating the Sarbanes –Oxley Act section 404, which requires internal controls in a company. The corporation should also consider hiring competent personnel, who will abide by the required regulations, among them GAAP. Green and associates auditors should not overlook any errors in ABC Corporation. An effective and reliable opinion should be made regarding the current status of the company. When an honest report is made, the company is capable o f correcting its faults, hence operating by the rules of GAAP. Lack of appropriate feedback could result to the downfall of a firm. References PriceWaterhouseCoopers. (2004). Internal Control over Financial Reporting, an investor resource. Web. Vallabhaneni, S. (2005). Wiley CIA Exam Review, Conducting the Internal Audit Engagement. Edition 3. NJ: John Wiley and Sons Publisher. Print.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on The ABC Corporation Case was written and submitted by user Frankl1nSt0rm to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Acquaintance Rape essays

Acquaintance Rape essays Women take many routine precautions in their lives to prevent acts of violence from happening to them. Women take these precautions as a second nature because ever since we were little children our parents taught us not to do certain things and if you do your safety may be in jeopardy. However, the precautions theyre taking are against an attack by a stranger as opposed to an attack by an acquaintance. This should not be the case when we know that large proportions of these violent and sexually violent crimes are committed by someone the woman knows and sometimes even trusts. All women know not to go out alone or walk alone, especially at night. We also know better than to interact with men if we dont want to pursue it. We are taught to dress differently so as not to attract a man. We are taught to have a ride, and let someone know where youre going and what time you plan on arriving home. These routine precautions are a good idea, but they arent addressing the real problem. The real problem is acquaintance rape, even though most people when they visualize rape, they visualize a stranger in a dark alley waiting to pounce. This is obviously not the case. If we look at the risk factors associated with acquaintance rape then we can assess some routine precautions that can be taken to avoid acquaintance rape. The first is frequently drinking enough to get drunk. Obviously men will find you more vulnerable to give into their demands if you have been drinking or are drunk. A simple way to avoid this is not drinking in excess. This directly follows the next risk factor, which is drinking to the point of being unable to resist forceful sexual advances. This is an obvious risk factor. You are certainly more likely to be raped when you cant resist because to a man that means you want it. Using drugs or drinking by either the victim or the assailant increases the risk. Therefore, don...

Managerial Economics Essay Example | Topics and Well Written Essays - 1000 words

Managerial Economics - Essay Example The trade agreements have reduced prices of goods and services of America in foreign markets and also in the home country; tariffs and taxes on these products have been eliminated to a considerable extent. Overall benefits because of globalization are numerous but the major one is surging demand of products and services along with reduction in their prices. As a result of globalization and trade agreements, foreign goods are available at cheaper prices and more American workers are losing their job as labor cost is rising at an accelerating pace. Globalization Globalization has helped in easing up trade between countries as it allows exchange of information, products, resources, services and markets at international level and gives organizations the opportunity of interacting with markets present in different countries. According to globalization theory, cited by Rogers and Hyatt (2012), there are about six processes of globalization that are dynamic and interdependent such as: 1. In crease in economic dependence across the world 2. Dramatic rise in exchange among countries on cultural, economical and resources level. 3. Breakthrough innovations in technological field allow quick access to important and new ideas and information. 4. Space and time has been compressed. 5. Institutions and events have been disembodied that allow restructuring and realignment of interaction on social level across time and space. 6. Reflexive processes have increased global consciousness. Hence, government policy makers have to take into account the factors that are impacting globalization as it has become an important part of every economy. In addition, many governments have changed their policies to support Foreign Direct Investments within their countries so that economy gets boosted (Castle, 2012). Trade Agreements – Protectionism or Deregulation Trade Agreements are being done on an increasing rate among countries to cope up with the recession that has significantly impa cted their economies. According to some researchers, Trade Agreements have helped in taking advantages of benefits being offered to each party; on the other hand, some critiques have argued that it poses threat to local manufactures and service providers (Shah, 2010). In economic policy, protectionism is used to create some restrain in trade through various measures like regulations, quotas and tariffs; it is used in discouraging certain goods imports and give protection to domestic markets as well. On the other hand, deregulation is done to have free economic activity that is free from binding rules of the state; the main idea of this attempt is to boost competition in the country (Labonte, 2010). Some critics have referred to protectionism as a barrier to free trade as it makes certain industries eligible for subsidization that means competition reduces to a greater extent as everyone is treated on an equal basis. However, deregulation allows easy trading amongst countries and mot ivates domestic producers to contribute more in its respective economy. Inflation Inflation is described as increase in price of goods and services (Amadeo, 2012). When inflation is increased, individual’s standard of living falls considerably; each dollar spent for purchasing will buy less amount of thing being bought and more money will be required to get hold of same goods and services. When the inflation is mild, it can significantly impact the economic growth of a country. Healthy economy is one in which prices rise slowly and gradually so that future increase in prices can be avoided. All government policies have to ensure that inflation is controlled so that prices of goods and serv