Fluent Essays

Two essay questions assessment (1200 words in total) on ethical asepses in a case provided. Please refer to the details of the assessment attached (file name: Finanicial Accounting- Details of assessment 1).Description You will conduct a short investigation around some legal and ethical issues (if any) which could significantly impact corporate financial performance and reporting. These are examples of the issues that any business might face within the real world. Specific Requirements Part 2 (a) (25 + 25 = 50 marks) Craig Norm, an engineer, of Norm Engineering, has been contracted by the Australian Building Association (ABA) to conduct an audit of the materials installed and supplied by City Builders Pty Ltd. City Builders supplies and fit cladding to the external walls of apartment buildings throughout Australia. The cladding is both decorative and forms part of the building structure. Craig, on completion of his audit determines the cladding to be highly flammable and potentially very dangerous. Tim Jones is the owner and director of City Builders. Upon advising, Tim is devastated and knows if he loses his building license and subsequently his business, he will not be able to afford to care for his family. They will likely lose their home. Prior to submitting his audit report to the ABA, Tim approaches Craig with an offer to make him a director and shareholder of City Builders Pty Ltd at no cost to Craig. He also offers to pay Craig thirty percent of all company profits. City Builders has been highly profitable in recent years due to the building boom in apartments in Australia. The only condition Tim places on Craig is that he does not disclose his findings about the cladding in his report to the ABA. Required: Discuss Craig’s’ ethical position / obligations and his possible courses of action. Your research should be drawn from the prescribed text, articles, and any relevant ethical frameworks. Part 2 (b) Harminder recently had dinner with his sister Priya, who is a senior accountant at AAA Ltd, a large pharmaceutical company listed on the Australian Stock Exchange. Over dinner Priya expressed her concerns about many recent complaints about one of their leading products CoVax. CoVax, which is promoted as a cure for many deadly diseases, has reportedly been responsible for many premature deaths of clients. There is to be a major investigation by authorities into the company and its practices regarding the drug CoVax and other products. Harminder and his parents have always supported Priya’s career decisions and consequently have invested many thousands of dollars buying shares in AAA Ltd. The family are now considering selling all their shares before this news hits the financial press, which is imminent in the next few days. Required: Discuss the ethical or legal implications that may follow if Harminder and his family sell their shares prior to this announcement and their possible courses of action. From your research, ensure you cite all references in your answer together with supporting legislation if any. Harvard citation method and compliance with Turnitin program. (900 – 1200 words) Your total mark out of Learning objectives At the end of this chapter, you should be able to: LO 3.1 discuss what is meant by sustainability reporting and explain the Global Reporting and Integrated Reporting initiatives LO 3.2 identify the factors that should help determine appropriate ethical behaviour for accountants LO 3.3 explain what is meant by the term ‘corporate governance’ and identify the eight ASX Corporate Governance Council principles LO 3.4 discuss the issues associated with the role of the board of directors and the audit committee in corporate governance LO 3.5 identify the approaches to enforcing corporate governance requirements in Australia and the USA. Chapter 3 Sustainability reporting, ethics and corporate governance 68 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 Hancock, Phil, et al. Contemporary Accounting, Cengage, 2019. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/deakin/detail.action?docID=6135923. Created from deakin on 2021-03-22 07:12:19. C op yr ig ht © 2 01 9. C en ga ge . A ll rig ht s re se rv ed . Introduction In Chapter 2 we considered aspects of financial reporting and the types of financial statements. In addition to financial information, many organisations now provide social, environmental and governance information. In this chapter we discuss sustainability reporting and explain the most commonly adopted protocols in relation to sustainability reporting, which in most countries is largely a voluntary exercise. An inevitable consequence of a capitalist-based economy that rewards profit is the failure of companies. This may be due to poor management, inadequate capital, excessive risk taking and, unfortunately in some instances, greed! The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (also known as the Banking Royal Commission) in Australia in 2018 yielded many examples of unacceptable behaviour in business. The spectacular failure of companies such as Enron and Lehman Brothers among others in the USA, Vivendi and Parmalat in Europe and the Hastie Group and Centro among others in Australia provide further examples of unethical behaviour. In 2009 the sub-prime lending debacle precipitated the Global Financial Crisis, which resulted in unprecedented problems with the world’s financial system. This caused governments in many countries to intervene to guarantee bank loans and acquire shares in many banks. The failure of such high-profile companies and banks raises serious concerns about many issues, including ethical behaviour, regulation of financial institutions, transparency of financial reporting, the appropriateness of accounting standards and corporate governance. In this chapter we first look at sustainability reporting before turning our attention to the issue of ethics and ethical behaviour in busineChapter 1 Learning objectives At the end of this chapter, you should be able to: LO 1.1 explain what is meant by the term ‘accounting’ LO 1.2 explain the difference between management accounting, financial accounting and tax accounting LO 1.3 identify the main users of accounting information, and the main purposes for which the information is used LO 1.4 identify the limitations of accounting information LO 1.5 discuss the factors that influence the choice of accounting systems for different types of organisations LO 1.6 demonstrate an understanding of the regulatory and environmental considerations that can influence accounting decisions LO 1.7 explain what is meant by the term ‘economic consequences’ and relate this to the choice of accounting policies LO 1.8 identify career opportunities for accountants. Introduction to accounting 4 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 Hancock, Phil, et al. Contemporary Accounting, Cengage, 2019. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/deakin/detail.action?docID=6135923. Created from deakin on 2021-03-22 07:05:47. C op yr ig ht © 2 01 9. C en ga ge . A ll rig ht s re se rv ed . Chapter 1 IntroductIon to accountIng 5 Introduction This chapter discusses the role of accounting, its uses and its users. It will also give you an appreciation of  the role of accounting within a business organisation and in its dealings with others. We introduce some ideas about the ways accounting helps managers to meet business objectives by, for example, providing the information necessary to make a decision about buying or renting premises. The ways that the size and type of the organisation affect its accounting will be discussed. For example, in a small family restaurant the accounting requirements are much less complex than in a large business such as Woolworths Limited. accounting (Chapter 1) The process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of the information. Figure 1.1 What is accounting?WHAT IS ACCOUNTING? Often called the ‘Language of Business’ Accounting involves: - recording - retrieving - storing - summarising - sorting - presenting ...info in various reports and analyses into an easily accessible format Budget wisely to ensure that your cash outflows (tuition fees, etc.) are not greater than your cash inflows (monthly allowance) Example: $ Also, while there are many shareholders who rely upon published financial statements for information about the financial performance and position of Woolworths, this is not the case with a small family restaurant. In this chapter we discuss the information required by the internal stakeholders, like managers, and those external to the organisation, like shareholders. The information provided to managers is rETHICS IN ACCOUNTING 2 Ethics in Accounting Date Running Head: ETHICS IN ACCOUNTING 1 Name Discuss Craigs ethical position/obligations and his possible courses of action. Your research should be drawn from the prescribed text, articles, and any relevant ethical frameworks. Craig concludes that the cladding is highly flammable and potentially dangerous after conducting his investigation. City Builders is run by Tim Jones, who is also the owner. Tim is devastated after exhorting, and he knows that if he loses his structure permit and thus his company, he wont be able to concentrate on his family. They are most likely to be evicted from their residence. Tim approaches Craig with a plan to make him a leader and investor in City Builders Pty Ltd at no cost to Craig before submitting his evaluation report to the ABA. He also offers to pay Craig over a third of the companys profits. Because of the recent structure blast in Australias lofts, City Builders has been extremely helpful. The only stipulation Tim places on Craig is that he not reveals his cladding findings in his ABA paper (Freedman, 2019). Comment by Microsoft Office User: you have written only a small summary on the case scenario in the question and cite an article by Freedman 2019? what do you mean by that?? The head of a review group acts as a manager and can regularly recognize excellent performance and provide insightful analysis for improvement in implementation. The lead investigator should demonstrate how the evaluation party should behave by tasks. A visionary must demonstrate leadership and provide real-world examples. The community leader should demand that the members follow all of the organizations policies, procedures, and customs. This includes adhering to the same working hours, dres code, meal hours, and other requirements. Colleagues should try to blend in with the environment theyre inspecting in. Any behaviour that distinguishes the company would detract from its ability to manage the organization under consideration. The group leader should be reasonable to both the group and the assessed association when dealing with any problem between the two. The pioneer must maintain objectivity when gathering information about current events to resolve any character conflicts. If there is significant doubt about the quality of the result of the check of existing realities, and further evaluation fails to remove the uncertainty, the item should be withdrawn or offered in language that recognizes the extent of weakness at the post-review (leave) conference. The reviews objectivity and decency were shown by this type of operation. If there are some character conflicts between members of the analysis committee, the group chief is responsible for intervening quickly and resolving the conflict. The target should be established in private and for the benefit of the entire evaluation committee and the organization being reviewed. Any analysis groups well-defined p